By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market closed broadly
lower on Wednesday, as investors turned cautious amid a selloff of
small and high-growth companies.
The benchmark S&P 500 and Dow Jones Industrial Average
retreated from record levels set on Tuesday.
The S&P 500 (SPX) finished 8.92 points, or 0.5% lower at
1,888.53. The Dow Jones Industrial Average (DJI) broke its five-day
winning streak and closed 101.47. points, or 0.6%, lower at
16,613.97. The Nasdaq Composite (RIXF) ended the day down 29.54
points, or 0.7%, at 4,100.63.
Read the recap of MarketWatch's live blog of today's
stock-market action.
"Markets are taking a pause after scaling record levels in the
past few days," says Frank Fantozzi, chief executive officer at
Planned Financial Services, a Cleveland, Ohio-based independent
wealth manager.
"As the economy keeps improving and the Fed keeps interest rates
low, stocks are likely to go higher in 2014, with some volatility
along the way," he added.
The only economic report on the docket was a report on U.S.
wholesale costs. Prices paid by producers jumped in April by the
largest margin since the autumn of 2012, rising sharply for the
second straight month. The rise suggests that price pressures might
be building a bit after an extended period of extremely low
inflation. Why consumer prices may not see the same spike that PPI
did.
The producer-price index jumped a seasonally adjusted 0.6% last
month, following a revised 0.5% increase in March, the Labor
Department said Wednesday. Economists polled by MarketWatch had
expected a 0.2% increase.
Macy's gains on earnings beat, Plug Power falls
Cisco Systems Inc. (CSCO) shares rose 3.6% in aftermarket trade
as the Dow component reported a fall in revenue, but results still
beat estimates.
Macy's (M) shares gave up post-earnings gains and closed flat.
The company reported first-quarter earnings that beat expectations,
as sales improved in April after severe weather hurt business
between January and March.
Shares of Deere & Co. (DE) fell 2% after the tractor maker
reported its profit fell 9.5% as sales of equipment fell. It also
predicted a steeper-than-expected decline in equipment sales for
the full fiscal year.
Shares of Plug Power Inc. (PLUGD) reversed post-earnings gains
and closed down 6.6%.
Shares of Take-Two Interactive Software Inc. (TTWO) lost 8%
after the videogame publisher projected a wider-than-expected
first-quarter adjusted loss.
Shares of Fossil Group Inc. (FOSL) dropped 10% after the
watchmaker provided disappointing projected earnings for the second
quarter. Read: Macy's, Deere, Cisco are stocks to watch
European stocks weaker, gold gains
In overseas markets, European stocks traded weaker. The release
of the Bank of England's May inflation report triggered losses for
the British pound across the board.
In Asia, the Hong Kong Hang Seng Index jumped 1% after China's
central bank told China's top bankers to cut mortgage rates and
take other actions to support the market. Gains in Hong Kong were
led by property firms. China property crash: Economists debate
outlook
In other markets, crude-oil for June delivery (CLM4) rose 34
cents to $102.29 a barrel, while gold for June delivery (GCM4)
gained 0.9% to $1,305.8 an ounce.
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