US stocks descended on Wednesday after a four-day winning streak that boosted the Standard & Poor’s 500 Index as phone stocks and utilities overwhelmed losses in the retail sector.
Dollar General Corp and Lowe’s Companies Inc tumbled more than 2% after analysts downgraded the stocks. Allergan Inc plunged 4.3% as Valeant Pharmaceuticals International Inc upped its bid to about $49.4 billion. Toll Brothers Inc, the largest developer of luxury homes in the US, increased 1.8% after posting profit that soared by more than 100%.
Twitter Inc surged 3.9% after Nomura Holdings Inc raised its endorsement for the stock.
The S&P 500 was almost flat, standing at 1,912.28 as of 11:49 am in New York. The US stock index earlier dropped as much as 0.2%. The Dow Jones Industrial Average lost 21.65 points or 0.1% to 16,653.85. The Russell 2000 Index fell 0.4%.
“After hitting a high, the market is taking a little bit of a breather. The fundamentals of the U.S. market still look decent,” Michelle Clayman of New York-based New Amsterdam Partners told Bloomberg.
Phone firms and utilities ascended at least 0.3% for two of every three best performing stocks in among the 10 main industry groups in the S&P 500. The stock gauge is performing at 16.2 times the forecasted earnings of its members.
Dollar General, operator of discount stores, went down 3.2% to $54.50 following the downgrading of its stock’s rating from buy to hold by Deutsche Bank AG.
Manufacturer of Botox anti-wrinkle therapy, Allergan, dropped as Valeant added more cash in its takeover bid with a viewing to making it attractive to the target as well as shareholders. But Allergen took issue with Valeant’s governance practices and operations, accusing the Canadian company of misrepresenting its organic sales gains.
As Reuters reported, the Nasdaq Composite plunged 10.24 points or 0.24% to 4,226.83.
To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Jonathan Millet at email@example.com