Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a704273
Overnight Markets: Wall Street retreats after Fed-driven rally
by Himanshu Singh on Sep 20, 2013 at 03:51
Wall Street retreated slightly on Thursday as investors paused after the Federal Reserve's decision to keep its stimulus intact sparked a worldwide rally and weighed the latest batch of economic reports.
The Dow Jones industrial average fell 40 points or 0.26%, to 15,637, the S&P 500 lost three points or 0.18%, to 1,722 and the Nasdaq Composite added six points or 0.15%, to 3,789.
Traders had expected the Fed to announce it would begin to trim its stimulus, but the central bank instead said it would continue buying $85 billion in bonds every month.
Data on Thursday showed factory activity in the US mid-Atlantic region increased by the most in more than two years and firms' optimism about the future hit a 10-year high. A separate report showed that sales of previously owned US homes unexpectedly rose in August to the highest level in more than six years.
Financial and consumer-staples shares had the biggest drops. JP Morgan Chase & Co (JPM.N) fell 1.2% after the biggest US bank agreed to pay approximately $920 million in penalties to regulators in two countries to settle some of its potential liabilities from its $6.2-billion "London Whale" derivatives loss last year.
Zions Bancorporation fell 2.8% and KeyCorp retreated 3.9%. Life insurer Lincoln National Corp. tumbled 3.7% and MetLife Inc. lost 3.2%.
Mining companies declined even as gold continued to rally. Newmont Mining Corp. retreated 3.5%. Barrick Gold Corp. slid 3.3%. Gold for immediate delivery rose 0.2%.
Elsewhere, ConAgra Foods Inc. lost 4% after first-quarter sales missed estimates. Walt Disney Co. dropped 2.1% as Morgan Stanley downgraded the shares.
On the positive side, technology shares were big gainers with Apple Inc. (AAPL) adding 1.6% as the iPhone maker rose for the third straight day.
Tesla Motors (TSLA.O) closed up 7%, boosted in part by an upbeat note from analysts at Deutsche Bank. Priceline.com Inc (PCLN.O) shares rose 0.6% percent at $1,000.62, making it the first S&P 500 stock in history to close above $1,000.
News sponsored by: