By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market ended
Wednesday's choppy session lower, as investors paused for breath
after six-straight days of gains on the S&P 500 and Nasdaq
Composite.
Earnings results from heavyweights Apple Inc. and Facebook Inc.
after the closing bell were in focus. Disappointing numbers from
home sales and manufacturing data added to cautious sentiment.
The S&P 500 (SPX) ended the day 4.16 points, or 0.2%, lower
at 1,875.39. The Dow Jones Industrial Average (DJI) closed 12.72
points, or 0.1%, lower at 16,501.65. Defying the general trend, the
Dow Transportation Index rose 0.1% to 7,742.26, closing at record
level for the second day in a row.
The Nasdaq Composite (RIXF) fell 34.49 points, or 0.8%, to
4,161.97.
Read the recap of MarketWatch's live blog of today's
stock-market action.
The S&P 500 has been trading near record levels, while the
blue-chip index is less than 100 points off its record closing
level reached on Dec. 31, 2013.
Uri Landesman, president of Platinum Partners hedge fund, says
this market has been strong and resilient in the face of risks.
"We expect markets to start going down and have a meaningful
correction, 250 points or more on the S&P 500, and we have been
surprised how it is hanging there," Landesman said.
"Markets are waiting for a catalyst, and once the selling begins
it may be quite drastic as there are no technical levels to support
it. It will be partly a regression to mean, partly high valuations
and partly because of risks in the global economy," he added.
In economic news, sales of new single-family homes plunged 14.5%
to a seasonally adjusted annual rate of 384,000, the lowest level
since July, with drops in three of four U.S. regions, the
government reported Wednesday. Economists polled by MarketWatch had
expected a March sales pace of 450,000.
Markit's preliminary reading on the manufacturing purchasing
managers' index for April slipped to 55.4, disappointing investors
who were expecting a slight rise from March.
Facebook tops estimates
Earnings reports from two tech heavyweights after the closing
bell were the center of attraction. Facebook Inc. (FB) shares rose
2.8% in aftermarket action after the social network company's
first-quarter earnings topped Wall Street's expectations. Adjusted
earnings per share were 34 cents, vs 24 cents estimated by
analysts. Facebook's Zuckerberg, Sandberg discuss earnings: live
blog.
Apple Inc. (AAPL) shares closed 1.3% lower. The iPhone maker is
schedule to release results at 4:30 p.m. Eastern.
Boeing Co. (BA) reported an 8% rise in first-quarter sales ahead
of the open, sending shares up 2.4%.
Delta Air Lines Inc. (DAL) shares rose 6.1% after the carrier
said operating revenue improved 5%, while Dow Chemical Co. (DOW)
rose 0.9% after reporting a rise in first-quarter profit.
Plug Power slides, Gilead gains
Shares of Plug Power Inc. (PLUGD) slid 4.3% after the fuel-cell
maker announced a secondary offering of stock.
AT&T Inc. (T) dropped 3.8% after the telecom late Tuesday
reported a first-quarter profit of $3.65 billion, or 70 cents a
share, compared with $3.7 billion, or 67 cents a share, a year
ago.
Yum Brands Inc. (YUM) shares rose 0.9% after the parent of KFC,
Taco Bell and Pizza Hut late Tuesday reported that profit rose 18%,
buoyed by a rebound in Chinese demand.
Gilead Sciences Inc. (GILD) gained 1.4% after the biotech firm
said late Tuesday its first-quarter profit more than doubled to
$1.33 a share.The company also said sales of its hepatitis C drug
Sovaldi hit $2.27 billion worldwide in the quarter.
Procter & Gamble Co. (PG) said its third-quarter profit rose
1.7% as expenses fell, though sales also dropped slightly. Shares
inched 0.3% lower.
In other financial markets, European benchmarks traded in
negative territory, with investors eyeing developments in Ukraine.
Tensions flared up again, with the U.S. planning to move troops
near Russia and Kiev looking set on restarting military action
against pro-Russia activists. Asian stocks closed mixed.
Most metals advanced, with gold (GCM4) rebounding from a
three-week low reached on Tuesday. Oil declined (CLM4), while the
dollar (DXY) also moved lower.
More must-reads from MarketWatch:
Apple earnings: These insiders have the most at stake
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disappoints
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