New York City (AFP) – U.S. stocks Tuesday moved lower on profit taking and a fresh forecast of weak economic conditions in the eurozone.
About 40 minutes into trade, the Dow Jones Industrial Average lost 88.36 points (0.56 percent) at 15,550.76.
The broad-based S&P 500 gave up 9.38 (0.53 percent) at 1,758.55, while the tech-rich Nasdaq Composite Index fell 18.31 (0.47 percent) to 3,918.28.
Briefing.com analyst Patrick O’Hare said the recent rally in equities positioned the market for a correction. Yet U.S. investors have shown continued resilience.
“A day of profit taking is a rare thing these days considering the S&P 500 has risen in 15 of the last 19 sessions, gaining a whopping 6.8 percent along the way,” O’Hare said.
“That sharp move in such a short period of time is why it is thought by many that the market is due for a pullback.”
The European Union cut its 2014 growth forecast for the 17-nation eurozone to just 1.1 percent, down from the 1.2 percent it forecast in May, with the lowered outlook weighing on European markets.
Retail pharmaceutical giant CVS Caremark rose 1.7 percent after earnings of $1.09 per share bested forecasts by 7 cents. The company also increased its full-year earnings projections due to stronger sales from a range of $3.90-$3.96 per share to $3.98-$4.01.
Luxury fashion company Michael Kors shot up 5.2 percent after earnings topped expectations by 3 cents at 71 cents per share on surging sales. North American comparable-store sales rose 21 percent.
Canadian energy company Encana rose 3.8 percent after announcing a new corporate strategy that emphasizes oil development at the expense of natural gas, cuts 20 percent of its staff, divests some assets and keeps a lower dividend. “We are doing what it takes to get Encana back to winning,” said Encana chief executive Doug Suttles.
Fertilizer company CF Industries fell 2.2 percent after earnings slumped 42 percent to $234.1 million due to tough industry conditions in the wake of lofty supply. However, the company pointed to a “good demand outlook and favorable pricing dynamics” for the 2014 nitrogen market.
Bond prices fell. The yield on the 10-year U.S. Treasury rose to 2.65 percent from 2.60 percent Monday, while the 30-year increased to 3.73 percent from 3.69 percent. Bond prices and yields move inversely.
Copyright 2013 The National Memo