Enter your email address and start getting breaking law firm and legal news right now!
Stocks Fell for U.S. after Rally as Companies Outweigh Optimism about Economic Growth
After the largest four-day jump in a year for the Standard & Poor’s 500 Index, U.S. stocks fell in companies from Procter & Gamble Co. to Amazon.com Inc.
Procter & Gamble, down 1.7 percent, Amazon.com, down 3.5 percent after USB AG lowered the online retailer’s rating. Dow Chemical Co. slid 1 percent after an internal review halted a breakup plan that would reduce the company’s worth.
In New York, the S&P 500 fell less than 0.1 percent to 1,819.26 at 4 pm., after it gained 0.4 percent earlier in the day. The Dow Jones Industrial Average fell 30.83 points, or 0.2 percent, to 15,963.94.
“We’re taking a breather here,” Phil Orlando, New York-based chief equity market strategist at Federated Investors Inc. which oversees about $376 billion, said in a phone interview. “Washington has essentially gotten out of the way.”
In the past four days, the S&P 500 advanced 3.9 percent, the biggest gain since January 2013. The benchmark gauge leaped 1.1 percent yesterday.
On January 15, the benchmark gauge closed at a record and then dropped 5.8 percent through February 3 because of signs of a slowing growth in China. Today China’s exports are at a high and overseas shipments are up 10.6 percent according to the General Administration of Customs. Imports gained 10 percent, leaving a surplus of $31.9 billion, the biggest since January 2009.
“What your seeing here is the world returning to normal.” Patrick Spencer, head of equity sales at Robert W. Baird & Co. in London, said in a phone interview. “The Chinese economy has doubled in size in dollar terms since 2008. The opportunities for the rest of us remain simply staggering. Concerns about tapering will be offset by reassurances that zero-interest policies are here for the foreseeable future.”
Image credit: Sarotiko.comStocks Fell for U.S. after Rally as Companies Outweigh Optimism about Economic Growth by Jaan