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 ended Wednesday's choppy
session essentially flat, as the main indexes struggled to stay in
record territory.
The S&P 500 and Dow Jones Industrial Average snapped a
five-day streak closing at a new high, as falling oil prices and
heightened geopolitical risks turned investors cautious.
European equities fell sharply as news of Russian weaponry
entering Ukraine stoked fears of escalating violence in the
region.
The S&P 500 (SPX) closed 1.46 points lower at 2,038.22, as
utilities and energy sector stocks sold off.
The Dow Jones Industrial Average (DJI) dipped in and out of
negative territory and closed 2.7 points weaker at 17,612.20
The Nasdaq Composite (RIXF) defied the trend and closed higher,
adding 14.58 points, or 0.3%, to 4,675.13.
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: Five red flags raised by stock
market's record run
http://www.marketwatch.com/story/5-red-flags-raised-by-stock-markets-record-run-2014-11-12.)
Need to Know: Santa rally is on track, barring another euro
crisis
Retailers, banks in the spotlight:Macy's Inc.(M) shares rose
5.1%, despite the retailer cutting its earnings and sales guidance
for the year, after posting a disappointing third-quarter sales
performance.
Fossil Group Inc.(FOSL) surged 8.4% 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 3.6% 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 32% after the
company agreed to be bought by BB&T Corp. (BBT) in a cash and
stock deal valued at $2.5 billion.
Plug Power Inc. (PLUGD) tumbled 16% after the
fuel-cell-technology company reported a bigger quarterly loss than
expected.
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 1.4% as the market continued
to fret about oversupply. Gold prices (GCZ4) settled lower 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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