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Wall Street retreats after S&P, Nasdaq hit record highs

Reuters 

By Yashaswini Swamynathan

- U.S. reversed course as some investors locked in gains after the S&P 500 and the hit record highs, with healthcare and industrial leading the decliners.

While strong first-quarter earnings supported the indexes in the past few weeks, global geopolitical tensions and developments in Washington could unsettle the market's record-setting spree.

Investors turned cautious after reports that President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.

The latest development could distract the Trump administration from its priorities such as tax reform, healthcare and simpler regulations.

The dollar index - which measures the greenback against six other major currencies - hit a six-month low, while prices of safe-haven gold rose.

"This kind of backdrop is very conducive to stock-pickers and that is helping drive idiosyncratic positions across markets," said Matt Miskin, senior capital markets research analyst at John Hancock Investments in Boston, Massachusetts.

Home Depot's first-quarter performance was a bright spot. The stock gave the biggest boost to the S&P 500 and the Dow with a 1.7 percent gain.

A report from the Federal Reserve showed U.S. factory output in April rose at its fastest clip in three years, supporting a view that economic growth was rebounding in the second quarter after a sluggish start to the year.

"As long as we have growth, whether it is earnings or economic data, the markets are likely to be able to take such (political) headlines in stride," Miskin said.

At 11:05 a.m. ET (1505 GMT), the Dow Jones Industrial Average was down 15.73 points, or 0.07 percent, at 20,966.21, the S&P 500 was down 3.09 points, or 0.13 percent, at 2,399.23 and the Composite index was up 1.06 points, or 0.02 percent, at 6,150.73.

Ten of the 11 major S&P 500 sectors were lower. Healthcare was the top loser with a 0.5 percent decline.

Pfizer was down 1.8 percent at $32.54 after Citigroup downgraded the drug developer's stock to "sell" from "neutral".

Staples was off 5 percent and was the top percentage loser on the S&P 500 after the office supplies retailer reported a decline in quarterly sales.

Akebia Therapeutics was up 15 percent at $14.85 after the drug developer entered into an agreement with Vifor Pharma Group, which also made a $50 million equity investment in the company.

Declining issues outnumbered advancers on the NYSE by 1,755 to 978. On the Nasdaq, 1,686 issues fell and 979 advanced.

The S&P 500 index showed 50 new 52-week highs and 12 new lows, while the recorded 85 new highs and 40 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Wall Street retreats after S&P, Nasdaq hit record highs

REUTERS - U.S. stocks reversed course as some investors locked in gains after the S&P 500 and the Nasdaq hit record highs, with healthcare and industrial stocks leading the decliners.

By Yashaswini Swamynathan

- U.S. reversed course as some investors locked in gains after the S&P 500 and the hit record highs, with healthcare and industrial leading the decliners.

While strong first-quarter earnings supported the indexes in the past few weeks, global geopolitical tensions and developments in Washington could unsettle the market's record-setting spree.

Investors turned cautious after reports that President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.

The latest development could distract the Trump administration from its priorities such as tax reform, healthcare and simpler regulations.

The dollar index - which measures the greenback against six other major currencies - hit a six-month low, while prices of safe-haven gold rose.

"This kind of backdrop is very conducive to stock-pickers and that is helping drive idiosyncratic positions across markets," said Matt Miskin, senior capital markets research analyst at John Hancock Investments in Boston, Massachusetts.

Home Depot's first-quarter performance was a bright spot. The stock gave the biggest boost to the S&P 500 and the Dow with a 1.7 percent gain.

A report from the Federal Reserve showed U.S. factory output in April rose at its fastest clip in three years, supporting a view that economic growth was rebounding in the second quarter after a sluggish start to the year.

"As long as we have growth, whether it is earnings or economic data, the markets are likely to be able to take such (political) headlines in stride," Miskin said.

At 11:05 a.m. ET (1505 GMT), the Dow Jones Industrial Average was down 15.73 points, or 0.07 percent, at 20,966.21, the S&P 500 was down 3.09 points, or 0.13 percent, at 2,399.23 and the Composite index was up 1.06 points, or 0.02 percent, at 6,150.73.

Ten of the 11 major S&P 500 sectors were lower. Healthcare was the top loser with a 0.5 percent decline.

Pfizer was down 1.8 percent at $32.54 after Citigroup downgraded the drug developer's stock to "sell" from "neutral".

Staples was off 5 percent and was the top percentage loser on the S&P 500 after the office supplies retailer reported a decline in quarterly sales.

Akebia Therapeutics was up 15 percent at $14.85 after the drug developer entered into an agreement with Vifor Pharma Group, which also made a $50 million equity investment in the company.

Declining issues outnumbered advancers on the NYSE by 1,755 to 978. On the Nasdaq, 1,686 issues fell and 979 advanced.

The S&P 500 index showed 50 new 52-week highs and 12 new lows, while the recorded 85 new highs and 40 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Wall Street retreats after S&P, Nasdaq hit record highs

By Yashaswini Swamynathan

- U.S. reversed course as some investors locked in gains after the S&P 500 and the hit record highs, with healthcare and industrial leading the decliners.

While strong first-quarter earnings supported the indexes in the past few weeks, global geopolitical tensions and developments in Washington could unsettle the market's record-setting spree.

Investors turned cautious after reports that President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation.

The latest development could distract the Trump administration from its priorities such as tax reform, healthcare and simpler regulations.

The dollar index - which measures the greenback against six other major currencies - hit a six-month low, while prices of safe-haven gold rose.

"This kind of backdrop is very conducive to stock-pickers and that is helping drive idiosyncratic positions across markets," said Matt Miskin, senior capital markets research analyst at John Hancock Investments in Boston, Massachusetts.

Home Depot's first-quarter performance was a bright spot. The stock gave the biggest boost to the S&P 500 and the Dow with a 1.7 percent gain.

A report from the Federal Reserve showed U.S. factory output in April rose at its fastest clip in three years, supporting a view that economic growth was rebounding in the second quarter after a sluggish start to the year.

"As long as we have growth, whether it is earnings or economic data, the markets are likely to be able to take such (political) headlines in stride," Miskin said.

At 11:05 a.m. ET (1505 GMT), the Dow Jones Industrial Average was down 15.73 points, or 0.07 percent, at 20,966.21, the S&P 500 was down 3.09 points, or 0.13 percent, at 2,399.23 and the Composite index was up 1.06 points, or 0.02 percent, at 6,150.73.

Ten of the 11 major S&P 500 sectors were lower. Healthcare was the top loser with a 0.5 percent decline.

Pfizer was down 1.8 percent at $32.54 after Citigroup downgraded the drug developer's stock to "sell" from "neutral".

Staples was off 5 percent and was the top percentage loser on the S&P 500 after the office supplies retailer reported a decline in quarterly sales.

Akebia Therapeutics was up 15 percent at $14.85 after the drug developer entered into an agreement with Vifor Pharma Group, which also made a $50 million equity investment in the company.

Declining issues outnumbered advancers on the NYSE by 1,755 to 978. On the Nasdaq, 1,686 issues fell and 979 advanced.

The S&P 500 index showed 50 new 52-week highs and 12 new lows, while the recorded 85 new highs and 40 new lows.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22