NEW YORK (AP) — After the Dow Jones Industrial Average hit a new all-time high on Thursday, U.S. stocks inched back from their record highs. 40,000 levels first time.
The Dow Jones Industrial Average fell 38.62 points, or 0.1%, to 39,869.38. The S&P 500 index, which is more widely followed on Wall Street, fell 11.05, or 0.2%, to 5,297.10, and the Nasdaq Composite Index fell 44.07, or 0.3%, to 16,698.32. All three indexes rose to record highs on Wednesday.
Deere weighed on the market, falling 4.7% despite reporting better-than-expected profits for the most recent quarter.that Future profit forecasts have been revised downward. This year’s sales were lower than analysts expected as farmers bought fewer tractors and other machinery.
Homebuilders also contributed to the decline after a weaker-than-expected report on the housing industry. The stock regained some of the huge gains from the previous day, when stocks soared on hopes of lower mortgage rates. DR Horton fell 4.2%, Lennar fell 3.3% and Palto Group fell 2.8%.
GameStop and AMC Entertainment also fell, falling for the second day in a row. The start of an amazing week. They are acting more on investor excitement than on changes in financial outlook.
AP correspondent Seth Sutel got the day off to a good start with his AP Markets in the Minute report.
GameStop is down 30%, but is still up nearly 59% for the week so far. AMC Entertainment fell 15.3%.
Those declines helped offset Walmart’s 7% increase. reported better profits The latest quarter beat analysts’ expectations. The company also said that this year’s sales could exceed the previously indicated range of expectations.
Walmart’s strength could be an encouraging signal for the broader economy. There are growing concerns about whether American households, especially low-income households, can sustain high levels of inflation and high credit card payments. lower end of income range.
Target, which will report quarterly results next week, rose after Walmart’s report, along with other retailers such as Dollar General and Dollar Tree. Each added at least 2%.
Chubb has since risen 4.7%. Warren Buffett’s Berkshire Hathaway revealed They were building ownership of the insurance company.
Under Armor warns next fiscal year’s sales are likely to decline by a “low double-digit percentage,” citing weak demand from wholesalers and “inconsistent execution across the business.” , vacillated between losses and profits.
The company announced a restructuring plan to cut costs and also announced a stock buyback program of up to $500 million. It fell by 1.3%.
The better-than-expected profit report was one of the main reasons why U.S. stock indexes rose broadly to record highs in May after a difficult April. There is also renewed hope that the US Federal Reserve could cut its key interest rates at least once this year. The Fed is keeping the federal funds rate at the highest level in more than 20 years.
The worst situation that exceeded expectations continued. Report on inflation The possibility of such cuts was in jeopardy earlier this year, but some More encouraging data ever since it arrived.
U.S. Treasury yields fell sharply in May as hopes grew that the economy could reach its desired sweet spot. That means high interest rates will cool inflation enough to keep it in check, but not enough to cause a bad recession.
Yields rose on Thursday following some mixed data on the economy, including a report hurting homebuilding stocks that showed the industry broke ground on fewer projects than expected.
One report shows a little more worker filed for unemployment Last week’s profits beat economists’ expectations, but the numbers are still low compared to the past. Some also believe that manufacturing growth in the Mid-Atlantic region has been weaker than expected, causing import prices to rise more than expected.
Chris Larkin, managing director of trading and investments at Morgan Stanley E*TRADE, said: “Today’s numbers were consistent with the overall theme of the week, which is not dramatic but shows that the economy is “The weather is showing signs of steadily cooling down,” he said.
The yield on the 10-year U.S. Treasury rose to 4.38% from 4.35% late Wednesday. The two-year bond yield rose to 4.79% from 4.72%, more in line with expectations for Fed action.
In overseas stock markets, indexes were mostly up in Asia, followed by modest declines in most of Europe. Hong Kong’s Hang Seng rose 1.6% as trading resumed after the holiday, while Japan’s Nikkei stock average rose 1.4%.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
