By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Strategist: 2,040 proving a tough barrier for the S&P 500
NEW YORK (MarketWatch) -- U.S. stocks moved lower on Wednesday,
as global equity investors turned cautious amid falling oil prices
and heightened geopolitical risks.
The S&P 500 and the Dow Jones Industrial Average pulled back
from record levels after logging five consecutive all-time
highs.
European equities fell sharply as news of Russian weaponry
entering Ukraine stoked fears of escalating violence in the
region.
The S&P 500 (SPX) losses were led by utilities and energy
sector stocks.
The Dow Jones Industrial Average (DJI) retreated from all-time
highs, with 26 of its 30 components trading in negative
territory.
The Nasdaq Composite (RIXF) also fell.
A roadblock for the S&P 500: Chris Beauchamp, market analyst
at IG, said 2,040 has proved to be a barrier for the S&P 500.
"Technical indicators still point to a market that is overbought
and looking to pause for breath, with the quieter mid-November
period providing an ideal time for a brief consolidation,"
Beauchamp said in a note. (Also see: Charting a strong bull trend
with room to run
http://www.marketwatch.com/story/charting-a-strong-bull-trend-with-room-to-run-2014-11-11-12103813.)
Philadelphia Fed President Charles Plosser said interest rates
should be raised "sooner rather than later," repeating a familiar
message. In a speech in London, he said rising rates aren't
inconsistent with a continuing recovery. Plosser is a voting member
of the Fed policy committee.
Minneapolis Fed President Narayana Kocherlakota, a voting member
of the Fed's policy committee, will give a luncheon talk in Eau
Clare, Wisconsin.
U.S. wholesale trade data for September, Wednesday's only
important economic data release, are due at 10 a.m. Eastern.
Need to Know: Santa rally is on track, barring another euro
crisis
Retailers, banks in the spotlight:Macy's Inc.(M) shares rose,
despite the retailer cutting its earnings and sales guidance for
the year after posting a disappointing third-quarter sales
performance.
Fossil Group Inc.(FOSL) rose after the company topped
expectations with third-quarter results and renewed a licensing
agreement with Michael Kors Holding Ltd. (KORS).
J.M. Smucker Co.(SJM) shares dropped as the company cut its
outlook for the year after its Folgers coffee brand suffered a
decline in sales driven by consumers avoiding higher prices.
Shares of Susquehanna Bancshares(SUSQ) jumped 34% in premarket
trade after the company agreed to be bought by BB&T Corp. (BBT)
in a cash and stock deal valued at $2.5 billion.
Shares of Citi(C) and J.P. Morgan Chase & Co.(JPM) shares
fell after U.S., Swiss and British regulators fined those banks and
three others $3.3 billion in total over allegations they tried to
manipulate the foreign exchange market. Read: "Have that my son",
"Bravo" -- chat logs from FX probe revealed (and it's no boring
read)
Bank stocks fell in London, with shares of HSBC Holdings PLC
(HSBC) -- among those banks fined over currency manipulation --
down 0.8%. Asia stocks largely rose, with the China Shanghai
Composite Index gaining 1% to close at an almost three-year
high.
Oil remains under pressure: Oil prices came under pressure
again, with WTI crude (CLZ4) dropping 0.9% as the market continued
to fret about oversupply. Gold prices (GCZ4) were flat and the
dollar(USDJPY) held on to the Yen115 level as the market awaited
news on whether Japan will delay a planned sales tax increase.
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