U.S. Stocks Fall On Profit Taking, Weak Eurozone Data


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.


Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

If You Think  Kristen Welker Flubbed Her Trump Interview, Think Again

Former President Donald Trump with NBC correspondent Kristen Welker

How would you like to be assigned to interview Defendant Trump? No matter what you ask, no matter how hard you push him, no matter how many facts you throw at him, all you’re going to get is a wall of lies and criticism for not going after him hard enough.

Keep reading...Show less
Donald Trump

45th U.S. President

Donald Trump

On Friday, Donald Trump was in Washington, D.C., to appear at something called the “Pray Vote Stand Summit.” In a relatively brief speech, Trump repeatedly fumbled basic facts, made mistakes about his own elections, and devolved into what some observers accurately called a “word salad.”

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}