By Anora Mahmudova and Sara Sjolin, MarketWatch
DuPont slumps after company wins proxy fight
U.S. stocks closed virtually unchanged on Wednesday, as early
gains faded by the end of the session. The S&P 500 and Dow
declined for the third consecutive day, following disappointing
monthly retail sales figures.
The initial reaction to economic data was positive, as investors
bet that the Fed would delay interest rate increases this year due
to sluggish economic growth. However, gains fizzled out by the end
of the session, with the main indexes closing flat.
The S&P 500 (SPX) closed less than a point lower at
2,098.48. The Dow Jones Industrial Average (DJI) ended 7.7 points
lower at 18,060.49. The Nasdaq Composite (RIXF) eked out a gain of
5.5 points, or 0.1%, settling at 4,981.
Peter Cardillo, chief market economist at Rockwell Global
Capital, said markets remain stuck in a range.
"Nothing seems to impact this market much on the negative side.
But the weak retail sales suggest consumer spending, which accounts
for two-thirds of the economy, is not taking off this quarter. This
puts even a September rate hike into question," Cardillo said.
"But the bottom line why stock prices remain high is due to lack
of alternatives," he said.
Randy Frederick, managing director of trading and derivatives at
the Schwab Center for Financial Research, said he expected the
market to remain range-bound until the Fed delivers its first rate
hike.
"It has been a battle between those who think good news is bad
news and those who believe good news is good news. We believe the
rates will go up later this year but uncertainty is keeping markets
rangebound," Frederick said.
Data: The Commerce Department said sales at U.S. retailers were
flat in April
(http://www.marketwatch.com/story/us-retail-sales-flat-in-april-continue-to-slow-2015-05-13)as
Americans remained thrifty, a trend that's intensified since the
end of last summer despite cheaper gasoline. American spent more at
restaurants and Internet sites, but they cut back on purchases of
autos, home furnishings, electronic goods and fuel.
Meanwhile, prices paid for imported goods fell 0.3% in April, as
the lower cost of goods such as food and industrial supplies offset
a rise in petroleum, the Labor Department said Wednesday. Excluding
fuel, import prices fell by 0.4% last month.
Stocks to watch: Shares of Dow component DuPont Co. (DD) fell
6.8% after shareholders rebuffed a campaign
(http://www.marketwatch.com/story/dupoint-beats-peltzs-trian-in-proxy-fight-2015-05-13)
by activist investor Nelson Peltz to take seats on the chemical
firm's board.
Department-store chain Macy's Inc.(M) reported
weaker-than-expected sales and profit in the first quarter. Shares
declined 2.5%.
Ralph Lauren Corp.(RL) shares fell 3% after the retailer said
earnings in the first quarter fell 19% as foreign-currency impacts
weighed on the company's underlying revenue growth.
Pall Corp.(PLL) shares rose 4.4% after announcing a deal
(http://www.marketwatch.com/story/pall-corps-stock-surges-after-deal-to-be-bought-out-by-danaher-2015-05-13)
to be acquired by Danaher Corp. (DHR)
Williams Partners L.P.(WPZ) is up 23% after gas natural-gas
company Williams Companies Inc.(WMB) announced an agreement to buy
the public equity of Williams Partners in a stock deal valued at
$13.8 billion
(http://www.marketwatch.com/story/williams-partners-stock-soars-on-buyout-deal-with-williams-companies-2015-05-13).
Read more about today's notable movers in Movers & Shakers
column
(http://www.marketwatch.com/story/vertex-gains-on-drug-news-williams-partners-surges-on-deal-2015-05-13).
Other markets: European markets gave up gains after initially
gaining ground. Fresh data showed the region's economy is picking
up
(http://www.marketwatch.com/story/eurozone-gdp-picks-up-boosted-by-france-italy-2015-05-13),
with France and Italy returning to expansion.
Asian markets closed mixed.
The dollar moved lower against most other currencies. Oil prices
(http://www.marketwatch.com/story/oil-extends-gains-trades-near-year-high-2015-05-13-11031658)
gave up earlier gains and settled 0.4% lower at $60.50 a barrel.
Gold prices
(http://www.marketwatch.com/story/gold-pops-above-1200-after-weak-retail-sales-2015-05-13)(GCM5)
rallied and settled 1.8% higher at $1,213.90 an ounce, the highest
level in more than five weeks.
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