The upward momentum that was carrying stock prices on the New York Stock Exchange came to a halt on Tuesday, with stocks closing lower a day after reaching their highest level since August began.
The S&P 500 index fell 9.19 points, or 0.2%, to 4,538.19, just its third loss in the past 17 days. The Dow Jones Industrial Average declined 62.75 units, or 0.2%, to 35,088.29, and the Nasdaq Composite gave up 84.55 points, or 0.6%, ending at 14,199.98.
Retailers had mixed results after several retailers reported their earnings for the latest quarter, and more importantly, their outlook for the holiday shopping season.
Lowe’s sank 3.1% even though its last quarter earnings were better than analysts expected. Its revenue came in below Wall Street estimates, and it also cut its full-year revenue and earnings forecasts. Sales of do-it-yourself projects have been lower than expected at this home improvement retailer.
Best Buy was down 0.7% after also beating analysts’ earnings expectations in the latest quarter, but fell short on revenue. Its chief executive, Corie Barry, said customer demand has been “more erratic and harder to predict.”
Best Buy cut its full-year revenue forecast, along with other financial measures.
On the winning side of Wall Street was Dick’s Sporting Goods, which rose 2.2%. It posted higher earnings and revenue in the third quarter than analysts forecast, as customers bought more on a per-transaction basis and made more total purchases. The sporting goods retailer raised its guidance for full-year results.
Retailers are wrapping up what has been a better-than-expected earnings reporting season for the summer. According to FactSet, companies in the S&P 500 index are on track to post their first year-over-year growth in earnings per share in a year.
But interest rates have been the biggest factor influencing the stock market recently. Stocks have rallied on growing hopes that inflation has cooled enough that the Fed’s next move on rates will be a cut rather than a hike.
The yield on 10-year Treasury bonds fell from 4.42% to 4.41%.