US Stocks Close Lower, Cling to Weekly Gains

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US Stocks Close Lower, Cling to Weekly Gains

US stocks dropped giving up some ground after four sessions of gains that lifted the S&P 500 to the highest close of the year.

The Dow Jones Industrial Average declined 0.8% or 141.38 points to 17,672.60.

The S&P 500 dropped 0.6% or 11.33 points to 2,051.82 and the Nasdaq Composite Index climbed 0.2% or 7.48 points to 4,757.88, as reported by The Wall Street Journal

The retreat came just a day after the US stocks gained after the announcement by the European Central Bank that it would buy bonds worth $68 billion a month in a bid to revive the stagnant growth of the Eurozone and the low inflation.

On Thursday, the Dow had advanced 1.5% to 17,813.98, the S&P rallied 1.5% to 2,063.15, which is the highest close in 2015.

Co-head of global equities at First New York Securities, Seth Setrakian said, “Generally the day after policy moves, from the ECB to the Fed, you have a little bit of a pullback. After a euphoric move up, normally there is a little bit of a hangover the next day.”

Market Watch quoted Randy Frederick, managing director of trading and derivatives at Charles Schwab as having said, “I’m impressed by how much stock volatility has come down. Then again, it could be a temporary lull between two major market catalysts.”

Starbucks Corp. reported stronger sales and traffic in the holiday quarter, sending its shares up to an all-time high. The stock of the coffee chai climbed 6.6% or $5.48 to $88.22.

General Electric Co. reported earnings that were better than expected in Q4, driven by the growth in its industrial segment. The shares climbed 0.8% or $0.20 to $24.48.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com