Dow and the S&P 500 ended lower yesterday following two sessions of gains as investors weighed the implications of strong economic data for the path of monetary policy over the next several months.
After the closing bell, Tesla Motors reported a stronger-than-expected third-quarter profit, but offered a fourth-quarter outlook that fell short of Wall Street estimates. The company’s stock fell about 11 per cent.
Among top declining sectors were energy and telecoms which had been market leaders in the previous day. The S&P energy sector index fell 0.8 percent and the telecom service sector index lost 1.9 per cent.
“Despite the bounce at the beginning of this week, equity markets likely need further consolidation, pullback before a more meaningful upside rally can develop given short-term indicators remain overbought,” said Robert Sluymer, analyst at RBC Capital Markets.
The Institute for Supply Management said its services index rose a point to 55.4 in October despite a partial government shutdown during the first half of the month.
The reading came in higher than September’s 54.4, handily beating expectations for a slight deceleration.
The Dow Jones industrial average was down 20.90 points, or 0.13 per cent, at 15,618.22.
The Standard & Poor’s 500 Index was down 4.96 points, or 0.28 per cent, at 1,762.97. The Nasdaq Composite Index was up 3.27 points, or 0.08 per cent, at 3,939.86.