US close: Markets lower as investors warned on bull market
Stocks again saw losses on Tuesday as some of Wall Street's most veteran investors sounded a cautious note on the outlook for the current bull market equities.
The Dow Jones Industrial Average finished down 0.13%, the S&P 500 lost 0.23% to 2,578.87 and the Nasdaq 100 settled 0.36% lower at 6,293.64.
"Icarus is flying ever closer to the sun," Bank of America-Merrill Lynch's chief investment strategist said, pointing to signs of “irrational exuberance” among investors in the investment bank's latest global survey of fund managers.
“Investors' risk-taking has hit an all-time high,” noted Merrill’s Michael Hartnett.
“A record high percentage of investors say equities are overvalued yet cash levels are simultaneously falling, an indicator of irrational exuberance.”
According to the latest FMS average cash balances fell from 4.7% in October to 4.4% in November - their lowest level since October 2013 - as asset managers chased markets higher.
Tuesday also marked the last day of US President Donald's Trump's trip to Asia with investors watching out for any developments over the future of a tax reform deal too.
Still on the economic front, the rate of advance in US factory gate prices accelerated from 2.6% in September to 2.8% for November, against a consensus estimate for 2.5%.
Meanwhile, the NFIB's small business confidence gauge edged up from 103.0 for September to 103.8 last month, ahead consensus expectations for 104.0.
Chicago Fed President Charles Evans said earlier at the ECB conference in Frankfurt that a new approach to interest-rate setting may be needed to deal with new shocks.
Speaking later in the day at an economic breakfast Kentucky, St. Louis Fed President James Bullard said policy rates were just fine where they were, adding that inflation data year-to-date called into question whether consumer prices were "reliably returning to target".
In corporate news, Home Depot shares finished 1.4% higher after its quarterly same-store sales beat analysts' expectations, while shares of Buffalo Wild Wings rocketed 23.97% on the back of a report in the Wall Street Journal that a private equity firm had bid more than $2.3bn for the restaurant chain.
Going the other way, TJX Companies lost 3.88% after it reported worse than expected sales for the three months to September.
General Electric was also in focus, with shares in the industrial conglomerate changing hands 5.91% lower as analysts at RBC gave a 'thumbs-down' to the company's turnaround plans unveiled during the previous session.
Dow Jones - Risers
Home Depot Inc. (HD) $168.05 1.64%
Coca-Cola Co. (KO) $47.43 1.52%
United Technologies Corp. (UTX) $118.80 1.48%
Caterpillar Inc. (CAT) $137.54 0.74%
Visa Inc. (V) $111.95 0.52%
3M Co. (MMM) $229.33 0.49%
McDonald's Corp. (MCD) $168.15 0.44%
Travelers Company Inc. (TRV) $133.87 0.41%
International Business Machines Corp. (IBM) $148.89 0.33%
Cisco Systems Inc. (CSCO) $34.04 0.27%
Dow Jones - Fallers
General Electric Co. (GE) $17.90 -5.89%
Dowdupont Inc. (DWDP) $68.55 -2.68%
Apple Inc. (AAPL) $171.34 -1.51%
Walt Disney Co. (DIS) $103.18 -1.50%
Goldman Sachs Group Inc. (GS) $237.25 -1.26%
Verizon Communications Inc. (VZ) $44.22 -1.18%
Exxon Mobil Corp. (XOM) $82.24 -0.78%
JP Morgan Chase & Co. (JPM) $97.24 -0.60%
Unitedhealth Group Inc. (UNH) $211.71 -0.45%
Chevron Corp. (CVX) $116.92 -0.26%
S&P 500 - Risers
Advance Auto Parts (AAP) $95.72 16.33%
Mattel Inc. (MAT) $18.54 5.10%
Endo International Plc (ENDP) $6.99 4.48%
Juniper Networks Inc. (JNPR) $26.43 4.22%
Signet Jewelers Ltd (SIG) $72.46 4.20%
Western Digital Corp. (WDC) $91.58 3.55%
ConAgra Brands Inc (CAG) $35.87 2.93%
Bed Bath & Beyond Inc. (BBBY) $20.22 2.54%
Kohls Corp. (KSS) $42.16 2.48%
FirstEnergy Corp. (FE) $35.05 2.46%
S&P 500 - Fallers
Frontier Communications Co. (FTR) $6.46 -7.18%
Newfield Exploration Co (NFX) $29.80 -7.07%
Range Resources Corp. (RRC) $17.36 -6.62%
EQT Corp. (EQT) $60.60 -6.16%
CenturyLink Inc. (CTL) $14.40 -6.07%
General Electric Co. (GE) $17.90 -5.89%
Chesapeake Energy Corp. (CHK) $3.94 -5.06%
Diamond Offshore Drilling Inc. (DO) $15.79 -4.99%
CF Industries Holdings Inc. (CF) $35.52 -4.95%
Transocean Ltd. (RIG) $10.72 -4.72%
Nasdaq 100 - Risers
Vodafone Group Plc ADS (VOD) $30.48 5.65%
Western Digital Corp. (WDC) $91.58 3.55%
Marriott International - Class A (MAR) $123.06 2.22%
Expedia Inc. (EXPE) $122.09 1.50%
Liberty Global Plc Lilac Class C (LILAK) $22.06 1.29%
Liberty Interactive Corporation QVC Group (QVCA) $23.73 1.28%
Cintas Corp. (CTAS) $149.20 1.26%
Fiserv Inc. (FISV) $129.73 1.23%
Idexx Laboratories Inc. (IDXX) $149.54 1.18%
Mondelez International Inc. (MDLZ) $42.53 1.14%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $38.90 -5.90%
Discovery Communications Inc. Class A (DISCA) $16.28 -4.18%
Discovery Communications Inc. Class C (DISCK) $15.27 -4.14%
Alexion Pharmaceuticals Inc. (ALXN) $109.98 -3.06%
Sirius XM Holdings Inc (SIRI) $5.35 -2.73%
Ctrip.Com International Ltd. Ads (CTRP) $45.30 -2.54%
Hologic Inc. (HOLX) $39.62 -2.51%
Gilead Sciences Inc. (GILD) $71.15 -2.33%
Celgene Corp. (CELG) $98.86 -2.27%
Regeneron Pharmaceuticals Inc. (REGN) $384.80 -2.24%