U.S. Stocks Slip as Rally Wavers Amid Speculation on Rate Timing

  • Year’s strongest-performing groups see brunt of selling
  • Earnings reports boost Foot Locker, Applied Materials, Deere

A Historic View of S&P 500 Valuations

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U.S. stocks slipped for the first time in three days, with a recent rally showing signs of tiring amid elevated valuations and rising speculation that borrowing costs will increase before year-end.

Investors sold this year’s winners, with phone companies capping their worst week since 2014, while utilities and energy producers also led the retreat. Better-than-estimated earnings from Deere & Co., Applied Materials Inc. and Foot Locker Inc.Bloomberg Terminal helped keep a lid on declines, with shares of the three surging more than 7 percent. Nike Inc. gained 3 percent, boosted by Foot Locker’s results.