US close: Stocks fall as markets retreat from record highs

16th May 2024 20:22

(Sharecast News) - US stock markets finished lower on Thursday, dropping into the red in afternoon trade, as investors took profits amid a barrage of economic data after Wall Street's three main indices all hit record highs the previous session.

The Dow closed down 0.10% at 39,869.38, after briefly topping the 40,000 mark for the first time in history, pulling back from the previous day's all-time closing high of 39,908.

The S&P 500 also slipped from back from record highs, falling 0.21% to 5,297.10, while the Nasdaq declined to 16,698.32, down 0.26% from Thursday's peak of 16,742.39.

"Investors have been pumped up by the latest inflation reading, believing it is cool enough to stir the Federal Reserve into action and cut rates in the near future," said Dan Coatsworth, investment analyst at AJ Bell.

"It also helps that quite a few US companies are getting a positive reaction to their latest results, together lifting the general mood around the markets and firing up enthusiasm to make trades."

Economic data barrage

US building permits fell by 3% to 1.44m in April, according to the Census Bureau, the lowest reading since December 2022 and below market expectations of 1.48m, while housing starts rose 5.7% month-on-month to 1.36m, below forecasts of 1.42m.

Seasonally adjusted initial unemployment claims fell by 10,000 over the week ending on 11 May. Economists had anticipated a drop to 220,000. The four-week moving average, which aims to strip out week-to-week volatility, meanwhile rose by 2,500 to 217,750.

The Federal Reserve Bank of Philadelphia's manufacturing sector index slipped from a reading of 15.5 in April to 4.5 for May. Economists had pencilled in a decline to 8.

Seasonally adjusted US import prices leapt 0.9% month-on-month, according to the Department of Labor, ahead of the consensus forecast of 0.3%. That was chiefly the result of a 2.4% jump in fuel import prices, while those of non-fuel imports rose by 0.7%.

US industrial production decreased 0.4% year-on-year in April for the first drop in three months, according to the Federal Reserve, while capacity utilisation edged down to 78.4% in April from an upwardly revised 78.5% in March, and in line with market estimates.

Market movers

Walmart shares jumped 7% to a record high after posting quarterly numbers that came in ahead of estimates thanks to an increased percentage of high-income shoppers and a jump in online sales. The retail giant also said net sales and adjusted earnings would be at the high end of slightly above earlier guidance.

Insurance group AIG announced the sale of a 20% stake in retirement and insurance firm Corebridge Financial to Japanese peer Nippon Life for $3.8bn, causing shares in Corebridge to surge 8%.

Chevron finished lower on reports it is set to launch the sale of its remaining UK North Sea oil and gas assets, in a move that would mark the US energy firm's exit from the ageing basin after more than 55 years.

Meta fell after the European Commission launched formal proceedings to investigate whether the company may have breached the Digital Services Act through how it treats and protects minors on Facebook and Instagram. Meta will be investigated over whether it is exploiting the weakness and inexperience of minors to cause addictive behaviour on Facebook and Instagram.

Dow Jones - Risers

Walmart Inc. (WMT) $64.01 6.99%

3M Co. (MMM) $104.96 3.67%

Boeing Co. (BA) $183.37 3.60%

Intel Corp. (INTC) $32.08 2.57%

Walgreens Boots Alliance, Inc. (WBA) $18.34 2.54%

Travelers Company Inc. (TRV) $219.24 2.28%

Johnson & Johnson (JNJ) $154.27 1.05%

Procter & Gamble Co. (PG) $168.09 0.95%

Walt Disney Co. (DIS) $103.57 0.77%

Unitedhealth Group Inc. (UNH) $521.47 0.76%

Dow Jones - Fallers

Cisco Systems Inc. (CSCO) $48.35 -2.65%

Caterpillar Inc. (CAT) $351.40 -2.40%

Home Depot Inc. (HD) $343.55 -1.47%

Amgen Inc. (AMGN) $314.82 -1.32%

Chevron Corp. (CVX) $161.48 -0.96%

Salesforce.Com Inc. (CRM) $284.85 -0.94%

Dow Chemical Co. (DOW) $58.62 -0.75%

Visa Inc. (V) $279.96 -0.55%

Verizon Communications Inc. (VZ) $40.27 -0.54%

Microsoft Corp. (MSFT) $421.02 -0.49%

S&P 500 - Risers

Walmart Inc. (WMT) $64.01 6.99%

Chubb Corp. (CB) $265.33 4.89%

Dollar General Corp (DG) $146.87 4.12%

Everest Group (EG) $389.06 3.72%

3M Co. (MMM) $104.96 3.67%

Boeing Co. (BA) $183.37 3.60%

CF Industries Holdings Inc. (CF) $77.39 3.43%

Hanesbrands Inc. (HBI) $5.11 3.23%

Archer-Daniels-Midland Co. (ADM) $61.76 2.79%

Intel Corp. (INTC) $32.08 2.57%

S&P 500 - Fallers

Martin Marietta Mtrl (MLM) $583.62 -4.74%

Deere & Co. (DE) $395.10 -4.57%

United Rentals Inc. (URI) $681.11 -4.39%

D. R. Horton Inc. (DHI) $151.04 -4.15%

Globe Life Inc. (GL) $84.18 -4.10%

Vulcan Materials Co. (VMC) $260.03 -3.87%

Bread Financial Holdings, Inc. (BFH) $40.53 -3.87%

Lennar Corp. Class A (LEN) $165.44 -3.17%

Whirlpool Corp. (WHR) $91.96 -3.14%

Freeport-McMoRan Inc (FCX) $52.13 -2.77%

Nasdaq 100 - Risers

NetEase Inc. Ads (NTES) $104.26 5.57%

Qurate Retail Inc. (QRTEA) $0.77 2.94%

Intel Corp. (INTC) $32.08 2.57%

Walgreens Boots Alliance, Inc. (WBA) $18.34 2.54%

Charter Communications Inc. (CHTR) $277.64 2.16%

Cognizant Technology Solutions Corp. (CTSH) $70.34 2.15%

Workday, Inc. (WDAY) $256.68 2.14%

Dollar Tree Inc (DLTR) $121.30 2.10%

JD.com, Inc. (JD) $34.30 2.02%

Vodafone Group Plc ADS (VOD) $9.80 1.66%

Nasdaq 100 - Fallers

Biomarin Pharmaceutical Inc. (BMRN) $76.93 -4.32%

Cisco Systems Inc. (CSCO) $48.35 -2.65%

Align Technology Inc. (ALGN) $273.62 -2.39%

Biogen Inc (BIIB) $230.29 -2.14%

Western Digital Corp. (WDC) $74.10 -2.10%

PACCAR Inc. (PCAR) $105.90 -2.02%

Synopsys Inc. (SNPS) $569.35 -1.87%

Asml Holdings N.V. (ASML) $920.07 -1.85%

Meta Platforms Inc. (META) $473.25 -1.72%

Broadcom Inc. (AVGO) $1,413.10 -1.61%