US stocks mostly lower as market digests recent gains
In this Monday, Nov. 4, 2013, file photo, specialists Paul Cosentino and Michael Shearin (foreground left and right) work on the floor of the New York Stock Exchange. Disappointing earnings reports pushed the stock market lower on Tuesday, Nov. 5, 2013, as investors waited for more news on the economy. AP
NEW YORK CITY—US stocks Tuesday ended mostly lower as analysts pointed to the need for markets to absorb recent gains after a number of records in the last couple of weeks.
The Dow Jones Industrial Average fell 20.90 points (0.13 percent) to 15,618.22.
The broad-based S&P 500 dipped 4.96 (0.28 percent) to 1,762.97, while the tech-rich Nasdaq Composite Index edged up 3.27 (0.08 percent) to 3,939.86.
Markets opened lower after the European Union cut its 2014 eurozone growth forecast. The indices rallied after that, but the rise was not enough to pull two of the three main indices into positive territory.
Art Hogan, head of product strategy for equity research at Lazard Capital Markets, said the selling could be expected because equities have risen a lot in recent weeks.
“We’ve got some wind at our back here, but we’ve also got a market that’s worked its way pretty high in a short period of time,” Hogan said.
Car rental company Hertz Global Holdings sank 10.5 percent amid concerns over higher fleet costs, which Morgan Stanley said clouded the 2014 profit outlook.
Retail pharmaceutical giant CVS Caremark rose 2.0 percent after earnings of $1.09 per share bested forecasts by 7 cents. The company also increased its full-year earnings projections due to stronger sales from a range of $3.90-$3.96 per share to $3.98-$4.01.
Luxury fashion company Michael Kors shot up 5.8 percent after earnings topped expectations by 3 cents at 71 cents per share on surging sales. North American comparable-store sales rose 21 percent.
Canadian energy company Encana rose 2.8 percent after announcing a new corporate strategy that emphasizes oil development at the expense of natural gas, cuts 20 percent of its staff, divests some assets and keeps a lower dividend.
Fertilizer company CF Industries fell 3.7 percent after earnings slumped 42 percent to $234.1 million due to tough industry conditions in the wake of lofty supply. However, the company pointed to a “good demand outlook and favorable pricing dynamics” for the 2014 nitrogen market.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.66 percent from 2.60 percent Monday, while the 30-year increased to 3.76 percent from 3.69 percent. Bond prices and yields move inversely.
