U.S. Stocks Down for Third Day as Utilities, Real Estate SlumpBy
E-mini contracts drop fifth day as ECB, Fed meetings loom
Fundamentals don’t support a correction: BNP Paribas’ Kwong
U.S. equities reversed early gains to end lower Wednesday after ADP data showed companies added the most workers in almost three years to payrolls last month and financial stocks pared an early advance.
The S&P 500 Index lost 0.2 percent to 2,362.98 as of 4 p.m. in New York for the third consecutive loss in as many days. That’s the longest losing streak in more than a month. The Dow Jones Industrial Average lost 0.3 percent to 20,855.73.
- Financials end unchanged after rallying as much as 1.3% in early trading
- Bond proxies such as utilities and real estate declined at least 1.4% as the 10-year Treasury yield jumped 3.5 basis points
- Volume in energy stocks 43% above average at this time as the group loses 1.7% with oil down 5.3%
- VIX up 3.6% to 11.9
- S&P 500 still within two percentage points of its record set March 1, and the gauge’s price-to-earnings ratio is wedged close to a more than seven-year high.
- “This is probably only a correction, rather than the beginning of the end,” said Michael McCarthy, chief markets strategist in Sydney at CMC Markets. “The global drivers are still there with the signs of strength in the U.S. economy and China’s economy as well”
- February private payrolls climbed by 298,000 (forecast was 187,000), the most since April 2014, after a revised 261,000 gain in January, according to ADP
- Pre-market Thursday: Fairmount Santrol (FMSA), Signet Jewelers (SIG)
- In Europe, stocks halted a four-day losing streak, as gains in lenders were tempered by losses in energy and mining shares
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