US stocks dip, retreating from records
In this March 7, 2014, file photo, Glenn Kessler, left, works with fellow traders on the floor of the New York Stock Exchange. US stocks Tuesday, March 11, finished lower as the market retreated from last week’s records and waited for news that might support further gains. AP
NEW YORK—US stocks Tuesday finished lower as the market retreated from last week’s records and waited for news that might support further gains.
The Dow Jones Industrial Average fell 67.43 (0.41 percent) to 16,351.25.
The broad-based S&P 500 shed 9.54 (0.51 percent) to 1,867.63, while the tech-rich Nasdaq Composite Index lost 27.26 (0.63 percent) at 4,307.19, its fourth loss in as many sessions.
William Lynch, director of investment at Hinsdale Associates, said investors saw little reason to make big bets either way given Tuesday’s dearth of major economic news.
“Investors really don’t have a handle on whether or not this economy is getting stronger or weaker and how that might affect first-quarter earnings,” Lynch said. “Investors are taking a wait-and-see approach.”
Peter Cardillo, chief market economist at Rockwell Global Capital, said the market drifted lower in the absence of a catalyst to lift stocks and overtake “psychological resistance” to new records.
General Motors sank 5.2 percent as a congressional committee announced it would hold a hearing into the automaker’s slow recall of 1.6 million cars due to an ignition problem that has been tied to 13 deaths.
News that Men’s Wearhouse would acquire rival men’s retailer Jos. A. Bank Clothiers for $65 a share, or $1.8 billion, lifted both stocks. Men’s Wearhouse jumped 4.7 percent to $54.17, while Jos. A. Bank gained 3.9 percent to $64.22.
Dow component DuPont warned that first-quarter results could be marred by extended cold weather in North America and business disruptions in Ukraine. Shares fell 2.0 percent.
Another Dow component, Chevron, slipped 1.2 percent after shaving its medium-term oil and gas production target from 3.3 million barrels of oil and gas per day to 3.1 million.
J.C. Penney shares rose 3.0 percent as Citigroup gave a vote of confidence to the struggling retailer, upgrading the stock in anticipation that its turnaround will lead to higher sales.
Banking shares had a bad day, including Citigroup (-2.3 percent), JPMorgan Chase (-1.7 percent) and Goldman Sachs (-2.1 percent).
McDonald’s bolted 3.8 percent higher.
Bond prices rose. The yield on the 10-year US Treasury slipped to 2.77 percent from 2.78 percent, while the 30-year declined to 3.71 percent from 3.73 percent. Bond prices and yields move inversely.
