- Title: Wall Street pauses after two-day run
- Date: 26th May 2016
- Summary: NEW YORK, NEW YORK, UNITED STATES (MAY 26, 2016) (REUTERS) (SOUNDBITE) (English) JAY HUMMEL, MANAGING DIRECTOR OF ENVESTNET, SAYING: "It's a natural pull back after two great days. I also think people are on wait for the Fed."
- Embargoed: 10th June 2016 21:07
- Keywords: Wall Street rally Fed Federal Reserve Janet Yellen interest rates hike economy
- Location: NEW YORK, NEW YORK, UNITED STATES
- City: NEW YORK, NEW YORK, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA0024JG5MDP
- Aspect Ratio: 16:9
- Story Text: Wall Street treaded water on Thursday (May 26) following two days of strong gains as advancing defensive sectors offset declines in materials, banks and other cyclical industries.
"It's a natural pull back after two great days. I also think people are on wait for the Fed," said Jay Hummel, managing director of Envestnet.
Investors this week have grown more comfortable with expectations the Federal Reserve could raise interest rates as soon as June, with many taking the view that such a hike would reflect improvement in the country's economy.
After gaining 2 percent over the previous two sessions, the S&P 500 traded near flat, with a 1.1 percent dip in the materials index partly offset by a 1.1 percent rise in utilities.
In line with other policymakers who have spoken in recent days, Fed Governor Jerome Powell said a rate hike may come "fairly soon" if data confirms the U.S. economy is continuing to grow and labor markets are still tightening.
Data showed that while orders for U.S. durable goods surged in April, business spending plans continued to show signs of weakness, suggesting the manufacturing rout was far from over.
The Dow Jones industrial average fell 23.22 points, or 0.13 percent, to 17,828.29, the S&P 500 lost 0.44 points, or 0.02 percent, to 2,090.1 and the Nasdaq Composite added 6.88 points, or 0.14 percent, to 4,901.77.
Apple shares rose 0.61 percent, providing the largest boost to the S&P 500, while Microsoft dipped 0.81 percent, weighing most on the index.
Discount retailers Dollar General rose over 5 percent and Dollar Tree rallied 13 percent, both hitting record highs after reporting better-than-expected quarterly profits.
Abercrombie & Fitch shares slumped 17 percent to $21.09 after the retailer posted its 13th straight quarter of sales declines.
Costco Wholesale rose 3.7 percent a day after posting quarterly earnings.
Advancing issues outnumbered declining ones on the NYSE by 1,550 to 1,448, while on the Nasdaq, 1,507 issues fell and 1,269 advanced.
The S&P 500 posted 22 new 52-week highs and 1 new low; the Nasdaq recorded 55 new highs and 26 new lows. - Copyright Holder: REUTERS
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