US close: Markets lower, focus on tech and tax
Wall Street finished on a downbeat note on Tuesday, as traders digest weaker-than-expected readings on service sector activity and foreign trade while scanning the headlines for news regarding the US tax reform proposals, which were making their way through Congress.
The Dow Jones Industrial Average finished down 0.45% at 24,180.64, the S&P 500 was off 0.37% at 2,629.57 and the Nasdaq Composite ended the session 0.19% softer at 6,762.21.
On Monday, the Dow notched up a record close as investors cheered the passing of the US tax reform bill, but the rest of the market closed in the red, with technology stocks under the cosh.
“Technology has been the most consensus, as well as the one of the best-performing trades of 2017,” said Jasper Lawler, head of research at London Capital Group.
“That combination is making investors nervous going into year-end and they are taking profits.
“After briefly reaching a three-day high on Monday, the tech-heavy Nasdaq 100 slammed back down to finish -1.17% and near its lows.”
Lawler said the idea that tech could be in for a bigger correction did have more merit with year-end repositioning, so in the short-term a clear break below 6,250 in the Nasdaq 100 could see the index fall to 6,100, and then 6,000.
In economic news, the ISM's non-manufacturing purchasing managers' index for November slipped to 57.4 in November from a reading of 60.1 for October, and against consensus expectations for 59.0.
The latest foreign trade numbers from the Department of Commerce weren't much better, with the US's shortfall on foreign trade widening from -$44.9bn in September to -$48.7bn for October, versus consensus forecasts for -$47.5bn, and amid broad-based weakness in exports, according to analysts.
On the corporate front, shares of credit card and payments giant Mastercard were 1.19% higher following the approval of a new $4bn share buyback programme and a dividend hike, while car parts seller AutoZone was 0.42% firmer after better-than-expected earnings.
Regal Entertainment racked up strong gains, finishing the session 9.42% higher after agreeing to be bought by UK cinema chain Cineworld for $3.6bn.
Shares in Revance Therapeutics rocketed 33.65% after disclosing positive results for its wrinkle-relaxing injection in two late-stage clinical trials.
Amazon.com was also in focus, gaining 0.67% after launching its first local offering in Australia.
Dow Jones - Risers
McDonald's Corp. (MCD) $173.04 1.37%
Visa Inc. (V) $108.58 1.07%
Wal-Mart Stores Inc. (WMT) $97.83 0.85%
Microsoft Corp. (MSFT) $81.59 0.63%
Nike Inc. (NKE) $60.42 0.53%
Johnson & Johnson (JNJ) $139.71 0.47%
United Technologies Corp. (UTX) $120.29 0.21%
American Express Co. (AXP) $98.71 0.12%
Coca-Cola Co. (KO) $46.26 0.06%
Procter & Gamble Co. (PG) $91.40 -0.01%
Dow Jones - Fallers
Walt Disney Co. (DIS) $107.22 -2.72%
Intel Corp. (INTC) $43.44 -2.36%
Verizon Communications Inc. (VZ) $50.91 -1.55%
Pfizer Inc. (PFE) $35.61 -1.19%
JP Morgan Chase & Co. (JPM) $105.72 -1.15%
Home Depot Inc. (HD) $182.85 -1.11%
Cisco Systems Inc. (CSCO) $37.31 -1.09%
General Electric Co. (GE) $17.76 -1.06%
Caterpillar Inc. (CAT) $140.14 -0.96%
Goldman Sachs Group Inc. (GS) $248.33 -0.93%
S&P 500 - Risers
First Solar Inc. (FSLR) $61.21 6.88%
Spectra Energy Corp. (SE) $12.73 6.26%
Micron Technology Inc. (MU) $41.21 3.28%
eBay Inc. (EBAY) $36.81 3.11%
Valero Energy Corp. (VLO) $85.80 2.57%
Electronic Arts Inc. (EA) $103.38 2.53%
Wells Fargo & Co. (WFC) $58.55 2.02%
Marathon Petroleum Corporation (MPC) $64.56 1.96%
Western Digital Corp. (WDC) $78.56 1.88%
KLA-Tencor Corp. (KLAC) $102.64 1.74%
S&P 500 - Fallers
Edison International (EIX) $70.00 -12.78%
Robert Half International Inc. (RHI) $53.30 -5.95%
Mattel Inc. (MAT) $15.95 -5.34%
Discovery Communications Inc. Class C (DISCK) $18.57 -4.87%
Discovery Communications Inc. Class A (DISCA) $19.86 -4.75%
Carmax Inc. (KMX) $67.71 -4.23%
Ralph Lauren Corp (RL) $95.79 -3.93%
Kohls Corp. (KSS) $48.30 -3.77%
Sempra Energy (SRE) $116.21 -3.54%
Bed Bath & Beyond Inc. (BBBY) $23.57 -3.40%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $41.21 3.28%
eBay Inc. (EBAY) $36.81 3.11%
Electronic Arts Inc. (EA) $103.38 2.53%
Sirius XM Holdings Inc (SIRI) $5.74 2.32%
Western Digital Corp. (WDC) $78.56 1.88%
KLA-Tencor Corp. (KLAC) $102.64 1.74%
Activision Blizzard Inc. (ATVI) $59.55 1.62%
JD.com, Inc. (JD) $37.30 1.50%
T-Mobile Us, Inc. (TMUS) $60.96 1.20%
Liberty Global Plc Lilac Class A (LILA) $21.27 1.09%
Nasdaq 100 - Fallers
Discovery Communications Inc. Class C (DISCK) $18.57 -4.87%
Discovery Communications Inc. Class A (DISCA) $19.86 -4.75%
Biomarin Pharmaceutical Inc. (BMRN) $80.76 -3.42%
NetEase Inc. Ads (NTES) $317.99 -3.32%
Alexion Pharmaceuticals Inc. (ALXN) $108.90 -2.55%
Intel Corp. (INTC) $43.44 -2.36%
CSX Corp. (CSX) $55.79 -2.11%
Comcast Corp. (CMCSA) $39.52 -1.98%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $54.33 -1.95%
Walgreens Boots Alliance, Inc. (WBA) $70.18 -1.94%