NEW YORK REPORT
US stocks slipped yesterday after a three-day runup on concern recent gains were overextended despite the latest round of solid economic data.
Analysts said investors were trying to assess whether further market gains were justified, with the benchmark S&P 500 now up 58 per cent since its early March lows.
Shares of financials, energy and other sectors that have led recent gains lost ground. American Express, down 2.3 per cent at $35, was among top drags on the Dow, along with Exxon Mobil, down 0.7 percent at $69.84.
Data showed business activity in the mid-Atlantic states jumped more than expected in September and advanced to its highest level since June 2007, underscoring hopes that the recovery was on track.
The Dow Jones industrial average fell 7.79 points, or 0.08 per cent, to end at 9,783.92. The Standard & Poor’s 500 Index was down 3.27 points, or 0.31 per cent, at 1,065.49. The Nasdaq Composite Index was down 6.40 points, or 0.30 per cent, at 2,126.75.
Weighing on the Nasdaq was Oracle, which fell 2.8 per cent to $21.52, a day after reporting first-quarter revenue below expectations.
In other economic news, US housing starts and permits increased to their highest level since November, largely due to a big gain in multifamily starts.