US shares dropped, expanding their earlier decline, as energy stocks fell and concern heightened over escalating hostilities in Ukraine.
Target Corp sank 3.9% after profit for second-quarter missed projections as US sales remained poor and weakness in its Canadian operations persisted. Motorola Solutions Inc. slid 5.1% as quarterly earnings were lower than forecasts. Halliburton Co. and Noble Corp. declined more than 2.4% to pace losses among energy stocks. Dollar General Corp added 3.3% as it was reported to be considering a move for Family Dollar Stores Inc.
The Standard & Poor’s 500 Index dropped 0.9% to 1,920.80 as of 1:59 pm in New York. Shares declined early in the day as services data which topped estimates stocked speculation that interest rates may go up sooner than expected. The Dow Jones Industrial Average reversed 156.45 points or 0.9%, to 16, 412.83. The volume of shares traded in S&P 500 firms was 7% higher than the average for the past 30 days.
“In the last couple weeks we’ve been getting reports that the economy is definitely recovering, including GDP. “People are now focusing on the fact that the Fed isn’t going to be this accommodative forever,”John Fox of Cobleskill, New York-based Fenimore Asset Management told Bloomberg.
Gauges expanded their declines in the afternoon after Poland’s foreign minister said Ukraine faced pressure or possible invasion by Russian troops.
President Vladimir Putin ordered his government to work out a reaction to US and European punitive measures as Russia said there was a near humanitarian catastrophe in eastern Ukraine, which called for immediate international assistance.
According to the Wall Street Journal, investors continue to track earnings. The upward trend demonstrated by growth is one of the reasons David Chalupnik of Nuveen Asset Management remains upbeat about equities, the paper added.
Target Corp reduced its outlook for the lately ended quarter, sending its stock down 4%.
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