US stocks edged lower Tuesday under pressure from mixed corporate results.
The Dow-Jones Industrial Average dropped 76 points or 0.5% to 16454. The plunge set the Dow approaching its third loss in four sessions and 0.8% under the all-time peak of 16580.84 on April 30.
The S&P 500 index fell seven points or 0.4% to 1877 while the Nasdaq Composite Index retreated 19 points or 0.5% to 4119.
A measure of small-capitalization shares, the Russell 2000 index declined 0.6% to 1120. The gauge’s below-par performance on Tuesday highlighted the recent comparative weakness in higher-growth shares.
The Russell 2000 reversed 3.7% on the year. That compares with a 1.6 rise seen by the S&P 500.
“If you look at the leaderboard, it’s the growth stocks that are getting hit. It’s relatively quiet. We don’t have a volatility spike here. And we’re still near the highs,” Joe Saluzzi of Themis Trading is quoted by the Wall Street Journal as saying.
Saluzzi said that investors had not shown signs of serious concern over the Tuesday’s weakness.
Corporate news provided investors with little motivation. Twitter dropped 12%.
Traders said that weakness shown by Twitter dragged other high-growth stocks and consumer internet firms. Facebook plummeted 1.8% as Amazon slid 1.8%. LinkedIn lost 3.3%.
Merc, a Dow component, slashed 2.3% after the business agreed to dispose its consumer care business, which raked in most of its sales last year, to Bayer of Germany for $14.2 billion.
AIG plunged 3.9% after it said profits tumbled 27% following soaring claims costs, Bloomberg reported. Net income for the first quarter lost to $1.61 billion.
Shares of financial firms declined 0.8% as a group, the worst loss among 10 groups in the S&P 500.
US shares gained yesterday as growth in American service industries canceled out fears over growth in China and the political mayhem in Ukraine.
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 firstname.lastname@example.org