US close: Stocks end winning run as growth data disappoints

US stocks' dozen-day winning run came to an end on Tuesday after the latest reading on economic growth disappointed and as increased rate hike expectations lifted the dollar and Treasury yields.

After reaching its 12th successive peak the previous day, the Dow Jones index finally took a breather, falling just over 25 points to 20,812.24, while the S&P 500 retreated six points to 2,363.64 and the Nasdaq composite 36 to 5,825.44.

Having touched 18-month highs last week, West Texas Intermediate was down 0.2% on the day to $53.92 per barrel, while Brent crude was 0.6% weaker at $55.59.

The dollar was up 0.46% against the pound to 1.238 and 0.1% versus the euro to 1.0576 and was 0.1% stronger against the yen at 112.83.

Comments from New York Federal Reserve President William Dudley said during an interview with CNN that the case for raising interest rates has become "a lot more compelling", saw the greenback reverse earlier softness.

However, clouding the issue, the US fourth-quarter gross domestic product reading remained unchanged at 1.9% to miss expectations of a 2.1% upward revision.

While personal consumption rose, business investment disappointed, while core PCE over the fourth quarter slipped back to 1.2%, suggesting that upward price pressure remains subdued.

President Trump's speech to Congress, scheduled for just after 2100 Eastern time in the Capitol (0200 GMT), was the subject on fevered speculation, with Trump having teased investors at the beginning of the week with the promise of a "big" announcement on infrastructure.

Craig Erlam, senior market analyst at Oanda, said: “Trump’s words, while lacking few if any actual details, have so far been effective in getting investors pumped up at the prospect of a stronger economy but the longer this goes on, the less effective these promises are going to become and higher the risk is that the rally will run out of steam.

“The last few sessions may have seen the Dow extend its winning streak but the gains we’re talking about have been tiny. The market may well already be experiencing Trump fatigue and he’s now put himself in a position where he must deliver, and in a big way, or markets could quite quickly turn against him.”

Other economic data included a jump in the trade deficit to $69.2bn in January from $64.4bn the previous month, beating economists' expectations of a rise to $66bn.

US consumer confidence also improved, with the confidence index pushed up to 114.8 in February from 111.6 last month, beating expectations for a decline to 110.9. The present situation index rose to 133.4 from 130.0 and the expectations index jumped to 102.4 from 99.3 the previous month.

The Chicago Purchasing Managers' index rose to 57.4 from 50.3 the month before, beating expectations for a reading of 53.0 and marking the highest level since January 2015.

In corporate news, rental car company Hertz Global rose 2.41% after it reported a bigger-than-expected quarterly loss late on Monday.

Target tumbled after the retailer fell short on revenue and earnings forecast.

SeaWorld Entertainment made a splash despite reporting a dip in fourth quarter revenue and attendance numbers.

Kite Pharma flew higher after reporting positive results from a study of a treatment for non-Hodgkin lymphoma.