Wall Street slips as energy, financials lose ground
DJ: 21,029.47 -50.81 NAS: 6,203.19
-7.01 S&P: 2,412.91
-2.91 5/30
(Reuters) U.S.
stocks inched lower on Tuesday, with the S&P 500 retreating slightly from a
record, as weakness in the energy and financial sectors outweighed gains in
technology shares. Oil prices fell to keep U.S. crude CLc1 below the $50 a
barrel mark on concerns output cuts by the world's big exporters may not be
sufficient to lessen a global glut and signs of resurgent output in Libya.
The
energy sector's .SPNY 1.31 percent fall made it the worst performer among the
major S&P 500 sectors. Exxon (XOM.N) was down 0.6
percent.
Financial
stocks, down 0.8 percent, also supplied some downward pressure. JPMorgan (JPM.N) fell 1.7 percent
and Bank of America (BAC.N) lost 1.4 percent
as the two biggest drags on the S&P 500.
U.S. consumer spending recorded its
biggest increase in four months in April and monthly inflation rebounded, pointing to firming domestic demand that
could allow the Federal Reserve to raise interest rates next month.
"The
markets are susceptible to geopolitical and to purely political risk, but in
terms of the economy and
in terms of earnings, we are where investors are comfortable," said
Peter Kenny, senior market strategist at Global Markets Advisory Group in New
York.
"There
isn’t a huge rush to put more money into equities, there isn’t a huge rush to
put more money into Treasuries - the market is treading water."
Dallas
Fed head Robert Kaplan told CNBC that while he was concerned about the recent
economic data, he expected two more rate hikes in 2017.
Fed
Governor Lael Brainard said a hike is probably coming soon, though the central
bank may want to delay if inflation remains soft.
Traders
currently see an 86.6-percent chance of a quarter-point rate hike by the Fed at
its June meeting, according to Thomson Reuters data.
The Dow Jones Industrial Average .DJI fell 50.81
points, or 0.24 percent, to 21,029.47, the S&P 500 .SPX lost 2.91
points, or 0.12 percent, to 2,412.91 and the Nasdaq Composite .IXIC dropped 7.01
points, or 0.11 percent, to 6,203.19.
The
technology sector .SPLRCT rose 0.31 percent, boosted by gains in Apple (AAPL.O) and Microsoft (MSFT.O), both up 0.6
percent.
Amazon
(AMZN.O) was up 0.1
percent at $996.70, after briefly crossing the $1,000 mark. Alphabet's (GOOGL.O) Class A shares
were close behind, hitting a record of $997.62 before ending the session up 0.3
percent at $996.17.
Telecoms
.SPLRCL jumped, up 1.4 percent, after MoffettNathanson upgraded the sector to
"neutral" from "underweight," citing a lack of negative
near-term catalysts.
CardConnect's
(CCN.O) shares jumped
10.3 percent to $15.05 after First Data (FDC.N) agreed to buy the
payment processor for $750 million. First Data closed up 1.1 percent.
Declining
issues outnumbered advancing ones on the NYSE by a 1.58-to-1 ratio; on Nasdaq, a
1.87-to-1 ratio favored decliners.
The
S&P 500 posted 28 new 52-week highs and 11 new lows; the Nasdaq Composite
recorded 82 new highs and 70 new lows.
About
5.68 billion shares
changed hands in U.S. exchanges, below the 6.69 billion daily average
over the last 20 sessions.
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