By Wallace Witkowski, MarketWatch , Ryan Vlastelica
Priceline, Disney, Fossil, Yelp among the biggest decliners
U.S. stocks struggled for direction Wednesday after the stunning
firing of Federal Bureau of Investigation Director James Comey
stoked questions about President Donald Trump's ability to build
enough consensus in Washington to implement market-friendly
polices.
"This certainly isn't a positive, something that makes you want
to go out and buy stocks, but it is too early to tell how big of a
market-moving event this will prove to be," said Bruce McCain,
chief investment strategist at Key Private Bank.
For now, investors seem to be taking a "wait-and-see" approach,
he said.
Major indexes all opened lower, but the S&P 500 and Nasdaq
strengthened throughout the session to post thin gains, boosted in
part by a rally in crude oil prices that provided support to the
energy sector. The Dow continued to trade in negative territory,
pressured by weak results from Walt Disney Co. (DIS).
The Dow Jones Industrial Average fell 54 points, or 0.3%, to
20,922, as Disney shares contributed about 20 points of that
decline. Losses on the average widened after Boeing Co. (BA) shares
contributed about another 24 points of decline following reports it
was halting flights of its 737 MAX jets to inspect engine
problems.
The S&P 500 was up 1 point, or less than 0.1%, to 2,398,
with six out of 11 sectors trading higher led by the energy
sector.
The Nasdaq Composite Index rose 6 points, or 0.1%, to 6,127.
On Tuesday, the Nasdaq posted a record close while the S&P
500 finished about 0.1% from its own all-time closing high. The Dow
is less than 1% below its record close, which was hit March 1. With
valuations stretched by some metrics, equities could be vulnerable
to prolonged uncertainty coming out of Washington, analysts
said.
Trump said he dismissed the director of the Federal Bureau of
Investigation
(http://www.marketwatch.com/story/trump-fires-fbi-director-comey-democrats-call-for-special-prosecutor-in-russia-probe-2017-05-09)
over his handling of the investigation into Hillary Clinton's
emails. The reaction on Capitol Hill to Comey's firing has ranged
from approval to outrage. In a press conference, Deputy White House
press secretary Sarah Huckabee Sanders told reporters that Trump
had considered firing Comey since the election
(http://www.marketwatch.com/story/trump-lost-confidence-in-comey-over-last-several-months-white-houses-sanders-2017-05-10-1491248).
Read:Complete text of White House statement on firing of FBI's
Comey
(http://www.marketwatch.com/story/complete-text-of-white-house-statement-on-firing-of-fbi-director-james-comey-2017-05-09)
And see:At first, Comey reportedly thought his firing was a
prank
(http://www.marketwatch.com/story/at-first-comey-reportedly-thought-his-firing-was-a-prank-2017-05-09)
The political uncertainly offset a strong rally in the energy
sector(XLE), which gained 1.2% as oil futures
(http://www.marketwatch.com/story/oil-prices-get-respite-from-selling-after-encouraging-us-supply-data-2017-05-10)
settled up 3.2% at $47.33 a barrel. Crude was higher after an
industry group reported a drop in U.S. crude supplies, a positive
sign for demand. Among specific names, shares of Chevron Corp.(CVX)
rose 1.2% as the biggest advancing stock on the Dow
industrials.
Gold futures settled up 0.2%
(http://www.marketwatch.com/story/gold-finds-some-footing-as-fbis-comey-firing-pressures-stocks-2017-05-10)at
$1,218.90 an ounce
European stocks
(http://www.marketwatch.com/story/european-stocks-back-away-from-21-month-high-as-2017-05-10)
finished higher, while Asian markets largely gained
(http://www.marketwatch.com/story/asian-markets-return-to-gains-after-korean-election-2017-05-09).
In the latest economic data, import prices rose 0.5% in April
(http://www.marketwatch.com/story/import-prices-jump-while-export-prices-edge-up-in-april-2017-05-10),
while export prices were up 0.2%. Both were higher than expected.
Separately, a release on the federal budget is on tap for 2
p.m.
Check out:
Stock movers:Abercrombie & Fitch Co. shares (ANF) jumped 12%
in heavy trading following a Reuters report the retailer was
fielding buyout interest.
Mylan NV(MYL) shares rose 0.3% after the drugmaker posted
first-quarter profit that exceeded expectations
(http://www.marketwatch.com/story/mylan-stock-rises-3-after-first-quarter-profit-beat-revenue-miss-2017-05-10),
though revenue was weak.
Fashion-accessories maker
(http://www.marketwatch.com/story/fossil-group-shares-plummet-after-results-outlook-miss-street-view-2017-05-09)Fossil
Group Inc.(FOSL) and online reviews provider
(http://www.marketwatch.com/story/yelp-shares-crater-25-in-after-hours-trade-after-revenue-miss-lowered-outlook-2017-05-09)Yelp
Inc.(YELP) both plummeted following disappointing quarterly
results. Shares of Fossil were down 21% while Yelp shed 18%.
Read the First Take: Yelp plummets as advertisers revolt
(http://www.marketwatch.com/story/yelp-plummets-as-advertisers-revolt-2017-05-09)
Online travel broker Priceline Group Inc.(PCLN) lost 5.2% after
delivering a weak second-quarter outlook
(http://www.marketwatch.com/story/priceline-shares-slide-on-weak-earnings-outlook-2017-05-09)
late Tuesday.
Entertainment titan Walt Disney Co.(DIS) was down 2.5% after
posting earnings that topped forecasts, but revenue that missed
views
(http://www.marketwatch.com/story/disney-shares-down-2-as-quarterly-revenue-narrowly-misses-expectations-2017-05-09).
The stock was by far the biggest decliner among Dow components.
On the upside, Nvidia Corp. (NVDA) jumped 16% after the maker of
graphics chips topped profit forecasts
(http://www.marketwatch.com/story/nvidia-jumps-more-than-10-after-handily-beating-on-earnings-2017-05-09-16913212)
late Tuesday.
Electronic Arts Inc.(EA) was up 13% following
better-than-expected earnings
(http://www.marketwatch.com/story/electronic-arts-shares-surge-as-earnings-outlook-tops-street-view-2017-05-09).
Wendy's Co.(WEN) rallied 5.5% after the fast-food chain beat
first-quarter profit and sales expectations
(http://www.marketwatch.com/story/wendys-stock-jumps-after-profit-and-sales-beat-expectations-2017-05-10),
and provided an upbeat outlook.
Inc. Research Holdings(INCR) reached a deal to combine with
private-equity owned inVentiv Health
(http://www.marketwatch.com/story/inc-research-to-merge-with-private-equity-owned-inventiv-health-in-all-stock-deal-2017-05-10),
creating a large biopharmaceutical outsourcing provider. The
agreement values inVentiv at $4.6 billion, including debt. Shares
of Inc. gained 20%.
Whole Foods Market Inc.(WFM) shares declined 0.4%, after an
earlier rise, following a report that grocery chain was looking to
name a new chairman
(http://www.marketwatch.com/story/whole-foods-shares-rise-on-report-of-pending-board-change-2017-05-10)
and replace half its board.
Coty Inc. (COTY) shares jumped 13% after the company said it was
looking to overhaul the Cover Girl brand of cosmetics to make it
more attractive to retailers.
Shares of News Corp.(NWS.AU)(NWS.AU), which owns The Wall Street
Journal and MarketWatch, declined nearly 3% following the release
of earnings
(http://www.marketwatch.com/story/news-corp-boosted-by-digital-subscriber-gains-2017-05-09)
late Tuesday.
--Victor Reklaitis in London contributed to this report.
(END) Dow Jones Newswires
May 10, 2017 14:53 ET (18:53 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Chevron (NYSE:CVX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Chevron (NYSE:CVX)
Historical Stock Chart
From Sep 2023 to Sep 2024