New York Report: Poor housing data prompts shares decline
US STOCKS edged lower last night, easing back from record territory a day earlier as weak economic data offset gains in Home Depot and other retail shares.
Seven out of the 10 S&P 500 sector indexes ended lower, led by industrials while consumer discretionaries led on the upside.
Gains in US home prices slowed in December, according to the S&P/Case-Shiller index, while the consumer confidence index fell more than expected in February.
Selling picked up slightly late in the session as traders unwound positions after the S&P 500 failed to break above Monday’s intraday record high of 1,858.71, analysts said. The index remained in negative territory, down 0.2 per cent, for the year.
“We tried to break out again and retest the highs, and since we failed, people are lightening up their positions they took earlier,” said Michael O’Rourke, chief market strategist at Jones Trading.
Home Depot shares jumped four per cent to $80.98, giving the biggest boost to both the Dow and the S&P 500. Home Depot’s earnings beat expectations, though sales fell more than expected in the fourth quarter.
The Dow Jones industrial average fell 27.48 points or 0.17 per cent, to end at 16,179.66. The S&P 500 slipped 2.49 points or 0.13 per cent, to finish at 1,845.12. The Nasdaq Composite dropped 5.38 points or 0.13 per cent, to close at 4,287.587.
Investors are anxious to hear from Federal Reserve chair Janet Yellen, who will speak tomorrow in her semiannual testimony about monetary policy.