NEW YORK: The Standard & Poor’s 500 Index snapped a three-day advance amid disappointing corporate results and after Federal Reserve Bank of Dallas President Richard Fisher said adequate economic stimulus is in place.
Priceline.com Inc, the biggest US online travel agency by market value, tumbled 14% after forecasting earnings that missed forecasts. McDonald’s (MCD) Corp., the world’s largest restaurant chain, retreated 2.8% as sales were unchanged worldwide in July. Hewlett-Packard Co. (HPQ) rallied 2.6 percent after raising its third-quarter profit forecast.
About eight stocks fell for every five that rose on U.S. exchanges at 9:53 a.m. in New York. The S&P 500 slid 0.2% to 1,398.70, after rising 2.7% in the previous three days. The Dow Jones Industrial Average dropped 19.38 points, or 0.2 percent, to 13,149.22. Trading in S&P 500 companies was down 13 percent from the 30-day average at this time of day.
“The market has gotten a bit ahead of itself on speculation of central bank action,” said Kevin Caron, a market strategist in Florham Park, New Jersey, at Stifel Nicolaus & Co.
Equities dropped as the Fed’s Fisher said global central banks may not have the capacity to undertake additional measures. Stocks rose yesterday as Fed Bank of Boston President Eric Rosengren said the central bank should pursue an “open- ended” easing program of “substantial magnitude.” (Bloomberg/tw)