This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dow, S&P 500 Retreat From Record Highs

Stocks in this article: ^DJI ^GSPC ^IXIC CSCO DE SHLD M KATE IBM DE

NEW YORK (TheStreet) -- U.S. stocks were lower Wednesday after markets posted two days of record highs. A strong result for producer prices showed the threat of deflation fading as the U.S. economy recovers.

The Dow Jones Industrial Average was 0.61% lower at 16,613.97, while the S&P 500 was off 0.47% to 1,888.53. The Nasdaq fell 0.72% to 4,100.63.

Despite recent highs for the markets, traders have noted a lack of breadth in upswings, with few individual stocks hitting new highs.

  • The producer price index rose 0.6% in April -- the most in over a year -- after an increase of 0.5% in March. Expectations were for a 0.2% result. The higher PPI showed the prospect of deflation fading as the economy improves.
  • Stocks seeing price action Wednesday included Kate Spade (KATE), Macy's (M) and Cisco (CSCO). Kate Spade posted a profit of $46.2 million or 37 cents a share, against a loss of $52.2 million or 44 cents a share a year earlier. Shares jumped 8.5%. Macy's shares closed effectively unchanged as it reported a 9% increase in profit for the first quarter and increased its dividend by 25%.
  • Cisco Systems after the closing bell on Wednesday reported a profit of 51 cents a share, beating Wall Street expectations of 48 cents a share. Shares were gaining more than 3% in after-hours trading.
  • Deere (DE) said fiscal second-quarter earnings fell 9.5% on lower demand for farming equipment. Shares were off 2%.
  • Sears (SHLD) reversed earlier gains after it said it is considering selling its Canadian operations, and is looking at strategic options for its 51% in Sears Canada. Sears shares dropped 5.9%. 
  • Fossil Group  (FOSL) fell 10.3% after the accessories maker released forecasts below analysts' estimates. 
  • IBM  (IBM) was one of the biggest losers in the Dow, off 1.8%.
  • In international markets, Germany's DAX and the U.K. FTSE were broadly flat. The Hang Seng closed up 1.03% while the Nikkei was 0.14% lower.
  • The U.K. jobless rate dropped to a five-year low of 6.8% in the three months to March, down from 6.9% in February. The Bank of England said that solid performance in the U.K. economy continued but more spare capacity needed to be absorbed before it would consider raising interest rates. Industrial production across the eurozone fell in March, down 0.3% from February and 0.1% from a year earlier.
  • In the U.S., regulators are reconsidering their approach to mortgage lending amid concern that tight standards could hamper a housing recovery.

-- By Andrea Tse, Jane Searle and Joe Deaux in New York

>>Read More:

Final Hour: Stocks Pause From Dizzy Climb

New York Times Tumbles as Abramson Is Replaced

 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,802.82 +24.67 0.14%
S&P 500 2,068.71 +7.48 0.36%
NASDAQ 4,757.7510 +9.3550 0.20%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs