NEW YORK: Wall Street stocks pulled back from records Thursday as concerns about a possible US government shutdown and lofty equity valuations dented sentiment.
The Dow Jones Industrial Average fell 0.4 percent to finish the session at 26,017.81.
The broad-based S&P 500 lost 0.2 percent at 2,798.03, while the tech-rich Nasdaq Composite Index slipped less than 0.1 percent to 7,296.05.
The declines cames after all three indices ended at records on Wednesday.
Art Hogan, chief market strategist at Wunderlich Securities, said the bickering among congressional leaders over funding the government beyond Friday was disappointing after Washington successfully mobilized behind tax reform in December.
A government shutdown could be damaging to the economy, especially sectors that depend on federal spending, he said.
“You go from feeling pretty confident about Washington getting things accomplished” to “frustration” at the possibility of a government shutdown, Hogan said.
He said there also was a natural cooling off after Wednesday’s rally and cited increased yields on US Treasuries as a potential drag. Higher yields can prod investors to shift funds away from equities into bonds.
General Electric had another bad day, falling 3.3 percent following the news Tuesday that it was taking a $6.2 billion charge linked to the insurance business. The conglomerate already was under heavy pressure due to weak performance in key industrial divisions.
Walmart advanced 1.6 percent following an upgrade from Goldman Sachs, which praised the retail giant’s strategy and said it was likely to grant a “meaningful” dividend hike due to US tax reform.
Morgan Stanley rose 0.9 percent after reporting that fourth-quarter earnings of 84 cents per share, seven cents above expectations.
Source: Brecorder.com
