Wall Street slips after Tuesday rally, results eyed

NEW YORK Wed Feb 6, 2013 8:46pm IST

Floor governor Thomas Facchine (C) repeats a price from Getco Securities specialist trader Michael Gagliano (L) as traders await the opening of a stock on the floor of the New York Stock Exchange, February 5, 2013. REUTERS/Brendan McDermid

Floor governor Thomas Facchine (C) repeats a price from Getco Securities specialist trader Michael Gagliano (L) as traders await the opening of a stock on the floor of the New York Stock Exchange, February 5, 2013.

Credit: Reuters/Brendan McDermid

Related Topics

Stocks

   

NEW YORK (Reuters) - U.S. stocks dipped on Wednesday as investors, awaiting fresh trading incentives, locked in profits after recent rallies took the S&P 500 to five-year highs.

Transportation stocks were among the worst performers weighed down by an 8.2 percent drop in CH Robinson Worldwide (CHRW.O), which dropped 8.2 percent to $61.53 after reporting fourth-quarter earnings.

The Dow Jones Transportation index shed 0.6 percent after closing at an all-time high on Tuesday. The index has surged more than 10 percent this year so far.

A 6-percent advance this year so far has lifted the benchmark S&P 500 index to its highest since December 2007, while the Dow briefly climbed above 14,000 recently, making it a challenge for investors to continue pushing the equity market upward in the absence of strong catalysts.

"You knew a correction was coming; the question was whether they were going to tease you and get it close and then start selling it off or get (the Dow) up to 14,000 and then start to make a move to the sell side," said Gordon Charlop, managing director at Rosenblatt Securities in New York.

"We got a quick move and it's really just not healthy for markets to go one way, so the idea that a little bit of a correction is due isn't troublesome to me at all."

Walt Disney Co (DIS.N) was among the bright spots, up 1.4 percent to $55.07 after the company topped estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters.

According to Thomson Reuters data through Wednesday morning, of 301 companies in the S&P 500 that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.

Looking ahead, fourth-quarter earnings for S&P 500 companies are now expected to grow 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

The Dow Jones industrial average lost 35.52 points, or 0.25 percent, at 13,943.78. The Standard & Poor's 500 Index slipped 3.17 points, or 0.21 percent, at 1,508.12. The Nasdaq Composite Index shed 4.34 points, or 0.14 percent, at 3,167.24.

The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2, when legislators sidestepped a "fiscal cliff" of spending cuts and tax hikes that could have hurt a fragile U.S. economic recovery.

Ralph Lauren Corp (RL.N) climbed 7.4 percent to $177.13 as the best performer on the S&P 500 after reporting renewed momentum in its holiday-quarter sales and profits.

Time Warner Inc (TWX.N) jumped 4.3 percent to $52.11 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in its film, TV entertainment and publishing units.

Visa (V.N), the world's largest credit and debit card network, is expected to report earnings per share of $1.79 for its first quarter, up from $1.49 a year earlier. Smaller rival MasterCard (MA.N) recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.

(Editing by Bernadette Baum)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

Sensex, Nifty rise to second consecutive record high

Sensex, Nifty rise to second consecutive record high

The BSE Sensex and Nifty on Friday rose to their second consecutive record highs. The 30-share Sensex surged as much as 1.3 percent to an all-time high of 27,706.80. The broader Nifty gained as much as 1.28 percent to a record of 8,275.15.  Full Article 

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage