* Final Q3 GDP at 3.5 pct vs est. 3.3 pct
* Apple's fall weighs on S&P 500, Nasdaq
* S&P 500 up more than 10 pct so far in 2016
* Indexes down: Dow 0.07 pct, S&P 0.15 pct, Nasdaq 0.36 pct
(Updates to afternoon)
By Noel Randewich
Dec 22 U.S. stocks fell on Thursday as investors
stepped back from a recent rally fueled by optimism that
President-elect Donald Trump will invigorate economic growth.
The dip pulled the Dow Jones industrial average further away
from the 20,000 mark after it nearly breached the level this
week for the first time.
Following a sharp rally since the Nov. 8 U.S. election, the
Dow is up about 14 percent for the year and the S&P 500 is 11
higher on bets that the economy will benefit from Trump's plans
for deregulation and infrastructure spending.
Some investors believe that recent gains may have made
stocks too expensive, and that Congress may water down or
prevent major infrastructure spending or tax cuts proposed by
"There are issues hanging over the market," said Donald
Selkin, chief market strategist at Newbridge Securities in New
York. "You need to digest these gains, and once he becomes
president, we'll see what is actually going to get passed."
Billionaire investor Carl Icahn, tapped by Trump on
Wednesday as a special adviser for regulatory issues, said in an
interview on CNBC that he was concerned about the stock market
in the short term following its recent surge.
A report earlier showed that the U.S. economy grew faster
than initially thought in the third quarter, notching its best
performance in two years. Gross domestic product increased at a
3.5 percent annual rate instead of the previously reported 3.2
percent pace, the Commerce Department said.
Consumer spending, which accounts for more than two-thirds
of U.S. economic activity, rose 0.2 percent in November, below
the estimated 0.3 percent gain.
The Dow Jones Industrial Average was last down 0.07
percent at 19,928.76 points and the S&P 500 had lost 0.15
percent to 2,261.79.
The Nasdaq Composite dropped 0.36 percent to
Seven of the 11 major S&P sectors were lower, with the
consumer discretionary index's 0.94 percent fall
leading the decliners. The discretionary sector was weighed by a
0.57 percent drop in Amazon shares.
The S&P telecommunications index led the gainers
with a 1.08 percent rise.
Apple fell 0.74 percent after Nokia said
it had filed a number of lawsuits against the iPhone maker for
patent infringement. The stock was the biggest drag on the S&P
500 and Nasdaq.
ConAgra rose 3.30 percent after the packaged foods
maker's quarterly profit beat estimates.
Red Hat slumped 12.6 percent after the Linux
software distributor's quarterly revenue missed estimates.
Declining issues outnumbered advancing ones on the NYSE by a
1.26-to-1 ratio; on Nasdaq, a 1.55-to-1 ratio favored decliners.
The S&P 500 posted 11 new 52-week highs and 3 new lows; the
Nasdaq Composite recorded 100 new highs and 43 new lows.
(Additional reporting by Tanya Agrawal in Bengaluru; Editing by