U.S. Stocks Retreat From Highs After European Shares Close MixedBy
U.S. stocks declined as raw-material shares slid with commodity prices and investors assessed the rally that has pushed equities to new highs.
The S&P 500 Index dropped 0.6 percent to 2,381.91 at 4 p.m. in New York as the Dow Jones Industrial Average lost 43 points, about 0.5 percent, to 21,002. The gauge passed 21,000 for the first time Wednesday.
- Financial shares down 1.5% for biggest loss since Jan. 17
- Industrial companies lose 1%
- Raw-material stocks down 1.1%; Bloomberg Commodity Index falls 1.5%
- VIX down 6% for a second day of declines, back below 12
- Traders are betting on an 88% chance the Federal Reserve will raise rates this month, versus 40 percent at the end of last week, after several central-bank officials signaled their willingness to increase borrowing costs
- “If the Fed had wanted to keep its options open, a move back to around 60 percent would have been sufficient,” Michael Hewson, a market analyst at CMC Markets in London, wrote in a note. “In raising expectations to such an extent in such a short space of time, to not act now would deal a serious blow to their credibility, and also prompt quite a sharp market reaction”
- The earnings season is drawing to a close, with about 73% of S&P 500 members that have already reported beating profit estimates and a little over half exceeding sales forecasts, according to data compiled by Bloomberg
- Monster Beverages Corp. jumped 16% after posting better-than-forecast quarterly sales, while Broadcom Ltd. climbed 2.9% after the chipmaker predicted revenue that beat analysts’ estimates
- Initial jobless claims drop to lowest in almost 44 years
- After-market Thursday: Autodesk (ADSK), American Outdoor Brands (AOBC), Varex Imaging (VREX), Costco Wholesale (COST)
- After-market Thursday: Autodesk (ADSK), American Outdoor Brands (AOBC),
- The Stoxx Europe 600 Index fell less than 0.1%
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