This Day On The Street
Continue to site right-arrow
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!

Stocks Sharply Turn Lower in Final Hour

Stocks in this article: VRX KORS AGN TWTR TOL ^DJI ^GSPC ^IXIC FB GS

NEW YORK (TheStreet) -- U.S. stocks settle lower on Wednesday following Tuesday's record close for the S&P 500. Investors showed a preference for defensive plays in utility and telco stocks. Traders noted an increasing lack of breadth in new records while volumes were light.

WATCH: More market update videos on TheStreet TV | More videos from Jane Searle

The Dow Jones Industrial Average was 0.25% lower to 16,633.18, while the S&P 500 lost 0.11 to 1,909.78. The Nasdaq slid 0.28% to 4,225.08. Financial stocks and small caps were underperforming the broader index.

  • International markets were flat to higher following upbeat U.S. data from Tuesday. The FTSE 100 was 0.09% higher, the DAX was 0.02% lower, the Nikkei 225 closed up 0.24%, and the Hong Kong Hang Seng finished higher by 0.59%.
  • Allergan (AGN) and Valeant Pharmaceuticals (VRX) dropped 5.4% and 2.3%, respectively. Valeant announced that it is increasing its merger proposal for Allergan by $10 per share to $58.30.
  • Retailers such as Dollar General (DG) and Lowe's (LOW) retreated 3% and 2.2%, respectively.
  • Twitter (TWTR) popped 10.7% after the stock was raised to "buy" from "neutral" at Nomura. "We believe that the market has now priced in the expectation that Twitter remains a niche social media product. We believe risk / reward is much more favorable now ..." noted the Nomura analysts.
  • Toll Brothers (TOL) added 2.1% after posting on Wednesday fiscal second-quarter profit of $65.2 million, or 35 cents a share, up from year-earlier earnings of $24.7 million, or 14 cents a share.
  • Michael Kors (KORS) was 1.3% higher after giving optimistic full-year guidance. Michael Kors exceeded quarterly earnings expectations by 10 cents at 78 cents a share as same-store sales jumped more than 26%.
  • Goldman Sachs (GS) President Gary Cohen said flagging global economic growth rather than regulation was the culprit for falls in trading volumes at the bank and across the industry. The bank's shares closed flat.
  • Facebook's (FB) proposed acquisition of WhatsApp is facing a potential antitrust review in Europe, though it has already been approved in the U.S. The social media stock was 0.05% higher.
  • Sam Stovall, managing director of U.S. equity strategy at S&P Capital IQ, wrote in a client note that the S&P 500 has regained its bullish bias since June 2013, climbing more than 18%, and is now 13% higher than its pre-taper peak. Yet things are certainly not "back to normal," said Stovall. The yield on the 10-year note is more than 80 basis points above where it was on April 30, 2013 and higher-yielding stocks are still lagging well behind their lower-yielding brethren. "When screening for high-yielding investment candidates, we recommend that investors don't 'yield to temptation' by stretching for income and turning a blind eye to valuations and volatility."
  • Stocks rose Tuesday with the S&P 500 hitting a record closing high amid a raft of positive economic data, including rising consumer confidence and service sector expansion.

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

>> Read More:

Equity Pullback in the Cards but Outlook Will Brighten Later This Year

Why the Google Car is Hideous and Design is Incredibly Important

Select the service that is right for you!

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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • 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