By Sara Sjolin, MarketWatch , Ryan Vlastelica
Hewlett Packard tumbles after results
U.S. stocks fell on Friday, putting the Dow on track to end its
record-setting streak as investors found few catalysts to push
shares deeper into record territory following 10 straight positive
sessions.
The Dow Jones Industrial Average fell 35 points, or 0.2%, to
20,776. On Thursday, the blue-chip average posted its 10th straight
gain in a row, as well as its 10th straight record closing high
(http://www.marketwatch.com/story/dow-eyes-10th-day-of-gains-as-us-stock-futures-rise-on-back-of-oil-rally-2017-02-23)--the
longest such streak since 1987.
The S&P 500 slipped 4 points to 2,357, a drop of 0.2%. The
Nasdaq Composite lost 11 points to trade at 5,824, a decline of
0.2% on the day.
The day's decline was driven by financials, which lost 0.9%, and
by the energy sector, which fell 0.5%. Both are among the biggest
gainers of the market's recent advance, suggesting investors may be
taking profits at current levels.
Among the top drags on the Dow, Goldman Sachs Group Inc.(GS)
fell 1.6% while J.P. Morgan Chase & Co. (JPM) fell 1.1%.
"We're vulnerable to a short-term pullback because a lot of
optimism has come into the market in the past week or two," said
Bruce Bittles, chief investment strategist at Robert W. Baird &
Co.
For the holiday-shortened week, both the Dow and S&P were
set for gains, while the Nasdaq was eyeing a weekly loss. The Dow
is currently on track for a 0.7% rise, while the S&P 500 is up
0.4% for the week. The Nasdaq is down 0.3%.
The Dow is up nearly 9% over the past three months, with the
gains largely due to President Donald Trump's election in November.
Investors are betting that Trump's policies on taxes and regulation
will accelerate economic growth and boost corporate earnings, but
concerns are growing
(http://www.marketwatch.com/story/investors-may-be-banking-too-much-on-trump-lifting-earnings-2017-02-22)
that current valuations may not justify the impact that could
result from those policies, if enacted.
"Of course we're not comfortable with valuations, but valuations
don't tell you what direction the market will be moving in,"
Bittles said. "But because the market climbs a wall of uncertainty,
the market could be safe until taxes are cut and regulations are
withdrawn. Once those happen, the market could be vulnerable."
Markets saw little impact from a speech Trump gave at the
Conservative Political Action Conference, where he said that the
U.S. tax code would be made fair.
Trump comments on taxes have been a driver behind recent gains,
though few specifics have yet been released. For that reason,
investors are also looking ahead to an address that Trump is
scheduled to make to Congress on Feb. 28, where he is expected to
provide details on his highly anticipated tax reform proposals.
Separately, Federal Reserve Chairwoman Janet Yellen and Fed Vice
Chairman Stanley Fischer are slated to speak on Friday next week.
Investors will scour the comments for any hints as to when the
central bank will raise interest rates.
(http://projects.marketwatch.com/2017/trump-today-signup/)
Read:Mnuchin in no rush to label China a currency manipulator
(http://www.marketwatch.com/story/mnuchin-in-no-rush-to-label-china-a-currency-manipulator-2017-02-23)
And see:Doubts persist about tax timing as Trump meets with CEOs
(http://www.marketwatch.com/story/doubts-persist-about-tax-timing-as-trump-meets-with-ceos-2017-02-23)
Read:Doubts persist about tax timing as Trump meets with CEOs
(http://www.marketwatch.com/story/doubts-persist-about-tax-timing-as-trump-meets-with-ceos-2017-02-23)
Read: Why oil experts think OPEC's U.S. headache won't go away
this year
(http://www.marketwatch.com/story/why-oil-experts-think-opecs-us-headache-wont-go-away-this-year-2017-02-20)
(http://www.marketwatch.com/story/why-oil-experts-think-opecs-us-headache-wont-go-away-this-year-2017-02-20)Crude
oil was down 0.8% at $54.07 on Friday, while Brent traded 0.7%
lower at $56.40. The U.S. oil benchmark on Thursday closed at its
highest level since July 2015
(http://www.marketwatch.com/story/oil-prices-regain-momentum-us-supply-data-ahead-2017-02-23),
boosted by a smaller-than-expected rise in crude inventories. The
drop in oil prices weighed on the energy sector, with Occidental
Petroleum Corp. (OXY) down 0.9%.
In the latest economic data, consumer sentiment fell from a
13-year high in February, while new home sales
(http://www.marketwatch.com/story/new-home-sales-bounce-back-in-january-as-housing-demand-bolsters-market-2017-02-24)
posted a strong rebound in January.
Stock movers: Shares of Hewlett Packard Enterprise Co.(HPE)
slumped 8.2% after the IT company late Thursday reported lower
sales than expected
(http://www.marketwatch.com/story/hewlett-packard-enterprise-falls-after-revenue-miss-slashed-earnings-forecast-2017-02-23)
and cut its earnings projections for the fiscal year.
Shares of RH(RH), the company formerly known as Restoration
Hardware, jumped 25% a day after it forecast higher-than-expected
quarterly results
(http://www.marketwatch.com/story/rh-shares-rally-on-higher-than-expected-forecast-2017-02-23).
Nordstrom Inc.(JWN) rallied 5.1% after the department store
chain late Thursday reported earnings that beat forecasts
(http://www.marketwatch.com/story/nordstrom-shares-rise-after-retailer-beats-earnings-expectations-2017-02-23).
The retailer has been in focus
(http://www.marketwatch.com/story/nordstrom-recovers-from-trumps-terrible-tweet-in-just-4-minutes-2017-02-08)
following a recent decision by the company to drop Ivanka Trump's
fashion label, citing poor sales. President Trump, Ivanka's father,
tweeted that the company was treating her "so unfairly," although
the tweet didn't have a lasting negative impact on the stock.
Foot Locker Inc.(FL) gained 7.6% after the shoe retailer
reported profit that beat forecasts
(http://www.marketwatch.com/story/foot-locker-profit-and-sales-rise-above-expectations-2017-02-24).
J.C. Penney Co. Inc.(JCP) tumbled 9%, also after releasing
results.
Other markets:Asian stock markets
(http://www.marketwatch.com/story/asian-markets-dip-as-investors-cash-out-after-dovish-fed-minutes-2017-02-23)
closed mostly lower, with Europe following the same trend in the
early going.
Metals rose across the board, with silver on track for a ninth
straight weeks of gains.
The ICE Dollar index was down 0.1% at 100.99.
(END) Dow Jones Newswires
February 24, 2017 11:23 ET (16:23 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.