By Chris Dieterich
U.S. stocks fell Wednesday on the heels of losses on overseas
markets, extending sharp declines of the previous session.
The Dow Jones Industrial Average slipped 33 points, or 0.1%, to
16685, while the S&P 500 fell six points, or 0.3%, to 1930. The
Nasdaq Composite Index dropped 13 points, or 0.3%, to 4372.
Stocks have been under pressure, and have seen big swings in
recent days, buffeted by fresh worries about the pace of global
economic growth.
On Tuesday, the Dow plunged nearly 273 points, its biggest
one-day slide since the end of July. After a mostly unhindered rise
for U.S. stocks since the start of 2013, stocks have been hit by
concerns about economic activity in Europe and China, as well as
the potential for market disruptions stemming from Federal Reserve
policy changes. The Fed will end its long-running monthly
bond-buying program this month.
The Dow has fallen 3.2% from its Sept. 19 record high, and
closed Tuesday with its third move of at least 200 points in the
past five trading days.
"It's definitely a selloff like we haven't had in a while," said
Dave Rovelli, senior managing director of equity trading at
Canaccord Genuity.
Mr. Rovelli said that traders are fixated on so-called technical
levels, or pivot points for major benchmarks, that often provide
signals as to whether certain markets are headed higher or
lower.
Some were focused on the Russell 2000 index of small company
shares on Wednesday, he said. Further declines in the Russell 2000
could weigh on the broader market as traders add to their
protective market positions. "It's a very technical selloff," Mr.
Rovelli said.
The Russell index dropped 0.6% on Wednesday, extending a 3.1%
weekly decline.
Sputtering German industrial data, combined with a gloomy
assessment of growth by the International Monetary Fund, has
quickly darkened the global economic outlook, particularly in
Europe, where stocks continued to sink.
The Stoxx Europe 600 slid 0.6%. Germany's DAX dropped 0.7%, in
jeopardy of falling to its lowest level since December 2013.
Investors also await the release of the minutes from September's
meeting of the Fed, due at 2 p.m. Wednesday, for any clues about
when the central bank may raise interest rates.
Yields on benchmark 10-year Treasury notes edged lower to 2.342%
from 2.352% late on Tuesday.
Investors will get quarterly earnings reports to chew on in the
weeks ahead. Aluminum producer Alcoa will report after the closing
bell. Alcoa fell 2.2% in early trading.
Costco Wholesale rose 2.2%, and was the biggest gainer on the
S&P 500, after the wholesale retailer posted profit and sales
for the most recent quarter that topped expectations.
Yum Brands rose 1.5% after the fast-food company reported weak
sales in China, but strong revenues at KFC and Taco Bells outside
of China.
Monsanto added 0.3% after the agricultural biotechnology company
reported a bigger loss in the most recent quarter than
expected.
Gold futures slipped 0.1% to $1,210.70 an ounce. U.S. crude oil
futures lost 1.8% to $87.23 a barrel. The dollar rose against the
euro and yen.
In Asia, the Nikkei 225 fell 1.2%, while Hong Kong's Hang Seng
declined 0.7%.
Elsewhere, action-sports camera maker GoPro fell 5.3% to after
analysts at Piper Jaffray cut the stock's rating to neutral from
overweight.
GT Advanced Technologies moved higher for the second session in
a row, surging 40%. The manufacturer swooned 90% on Monday after
filing for bankruptcy protection.
Write to Chris Dieterich at christopher.dieterich@wsj.com