- Dow and S&P retreat from record highs
- Most economic data beats forecasts
- JPMorgan, banks weigh on markets
Dow Jones: -0.26%
S&P 500: -0.18%
US markets finished broadly lower on Thursday despite some upbeat economic data as analysts continued to digest the Federal Reserve's decision not to taper its stimulus programme.
Both the Dow Jones and S&P 500
snapped a four-day winning streak to pull back from record closing highs the previous session, though the tech-heavy Nasdaq ended in positive territory.
"US markets have stalled following their leap yesterday, and may well stay in this mode for the rest of the week," said Chris Beauchamp, Market Analyst at IG.
"1,700 [on the S&P 500] might have been firmly breached, but the latest all-time highs will probably provoke a degree of short-term selling, such as we saw in late May and early August," he said.
Markets surged on Wednesday after the Federal Open Market Committee (FOMC) surprised the market by maintaining the rate of its asset purchases at $85bn a month as it awaits a more sustainable recovery. However, it did say that this amount could still be scaled back before the end of the year.
In its report, the Fed said that while household spending and business fixed investment has advanced, and the housing sector has been strengthening, mortgage rates have risen further and fiscal policy is "restraining economic growth".
As such, as part of its goal "to foster maximum employment and price stability", the FOMC "decided to await more evidence that progress will be sustained before adjusting the pace of its purchases".
"I feel the Fed failed to seize on the opportunity to send the market a strong message by withdrawing its favourite drug," said Market Strategist Ishaq Siddiqi from ETX Capital.
Philly Fed index trounces forecasts
US existing home sales increased to an annualised rate of 5.48m in August, from 5.39m in the month before (consensus: 5.25).
The Federal Reserve bank of Philadelphia's monthly manufacturing index improved to 22.3 points from 9.3 in August (consensus: 10.3).
Initial weekly US unemployment claims rose by 17,000 to 309,000 in the seven days ended on September 7th (consensus: 330,000).
The country's current account deficit improved to -$98.9bn in the second quarter, from -$104.9bn for the previous three months (consensus: -$97.0bn).
Financials weigh on markets
JPMorgan Chase finished in the red as it continues to feel the impact of its 'London Whale' trading losses. The bank was fined a total of $920m, $221m of which was by UK regulators due to failures in risk management and financial reporting systems.
Other banking groups also finished lower, providing a drag on markets, including Bank of America, Citigroup and Goldman Sachs.
Agilent Technologies jumped after the testing-equipment company announced plans to split into two listed firms by means of a spin-off of its electronic-measurement products unit.
Drugstore chain RiteAid surged after the company unveiled quarterly earnings per share which beat consensus estimates by a wide margin.
After a sharp fall early on, software marker Oracle managed to push into the blue despite issuing a weaker-than-forecast outlook.
Shares of food group ConAgra fell steeply after delivering a mixed set of quarterly results with sales missing estimates. Sector peer General Mills was also lower after Wells Fargo Securities downgraded the stock from 'outperform' to market perform'.
Home furnishing group Pier 1 Imports slumped after lowering its full-year earnings guidance after weak second-quarter profits.
S&P 500 - Risers
Pitney Bowes Inc. (PBI) $18.50 +4.64%
CME Group Inc. (CME) $73.86 +4.20%
Agilent Technologies Inc. (A) $50.98 +3.37%
Iron Mountain Inc. (IRM) $29.02 +3.02%
Interpublic Group of Companies Inc. (IPG) $17.51 +2.88%
Allergan Inc. (AGN) $91.20 +2.59%
Lowe's Companies Inc. (LOW) $48.98 +2.58%
T. Rowe Price Group Inc. (TROW) $74.65 +2.54%
Williams Companies Inc. (WMB) $36.84 +2.53%
Fluor Corp. (FLR) $71.45 +2.20%
S&P 500 - Fallers
CIGNA Corp. (CI) $77.72 -4.34%
Regions Financial Corp. (RF) $9.21 -4.16%
ConAgra Foods Inc. (CAG) $30.80 -3.96%
Keycorp (KEY) $11.60 -3.89%
Lincoln National Corp. (LNC) $42.21 -3.67%
Newmont Mining Corp. (NEM) $29.78 -3.53%
Cliffs Natural Resources Inc. (CLF) $22.73 -3.24%
Monster Beverage Corp (MNST) $56.17 -3.21%
MetLife Inc. (MET) $47.08 -3.19%
SunTrust Banks Inc. (STI) $33.14 -3.01%
Dow Jones I.A - Risers
Home Depot Inc. (HD) $78.51 +1.47%
Travelers Company Inc. (TRV) $86.90 +1.15%
Microsoft Corp. (MSFT) $33.64 +0.96%
United Technologies Corp. (UTX) $112.00 +0.89%
Boeing Co. (BA) $119.04 +0.54%
3M Co. (MMM) $121.57 +0.23%
Johnson & Johnson (JNJ) $90.07 +0.18%
Intel Corp. (INTC) $23.92 +0.06%
Dow Jones I.A - Fallers
Unitedhealth Group Inc. (UNH) $70.84 -3.01%
Hewlett-Packard Co. (HPQ) $21.31 -2.23%
Walt Disney Co. (DIS) $65.72 -2.07%
General Electric Co. (GE) $24.46 -1.61%
Alcoa Inc. (AA) $8.44 -1.34%
JP Morgan Chase & Co. (JPM) $52.75 -1.24%
McDonald's Corp. (MCD) $97.92 -0.79%
Cisco Systems Inc. (CSCO) $24.61 -0.73%
Bank of America Corp. (BAC) $14.61 -0.71%
Coca-Cola Co. (KO) $39.31 -0.71%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $177.92 +7.04%
Sirius XM Radio Inc (SIRI) $3.96 +2.59%
Catamaran Corp (CTRX) $52.04 +2.40%
Equinix Inc. (EQIX) $183.29 +2.26%
Yahoo! Inc. (YHOO) $31.03 +1.95%
Fossil Group Inc (FOSL) $118.48 +1.90%
Citrix Systems Inc. (CTXS) $76.33 +1.84%
Mattel Inc. (MAT) $43.41 +1.69%
Facebook Inc. (FB) $45.98 +1.66%
Discovery Communications Inc. Class A (DISCA) $81.76 +1.64%
Nasdaq 100 - Fallers
Monster Beverage Corp (MNST) $56.17 -3.21%
Randgold Resources Ltd. Ads (GOLD) $76.86 -2.94%
Kraft Foods Group, Inc. (KRFT) $53.98 -2.79%
Green Mountain Coffee Roasters Inc. (GMCR) $84.32 -2.64%
Sears Holdings Corp. (SHLD) $58.11 -2.53%
Staples Inc. (SPLS) $14.77 -2.28%
Vodafone Group Plc ADS (VOD) $33.54 -1.85%
Bed Bath & Beyond Inc. (BBBY) $75.59 -1.79%
Alexion Pharmaceuticals Inc. (ALXN) $114.03 -1.64%
Express Scripts Holding Co (ESRX) $61.94 -1.51%