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 Electronics retailer Best Buy plunged after saying extended store
hours and price-cutting could squeeze its fourth-quarter profit.
Campbell Soup fell sharply after reporting that its profit slumped
as sales of soups and V8 drinks fell. The two stocks were the
biggest decliners in the Standard & Poor's 500 index.
Even with the slight decline the S&P 500 is still up 25 percent so
far in 2013 and has risen for six weeks straight, the longest
winning streak since February. The extended run-up has prompted a
number of market watchers to call for caution.
"We've had a phenomenal run, particularly in the last few weeks. I
wouldn't be surprised if we would pull back from here," said Alec
Young, global equity strategist with S&P Capital IQ.
The Dow Jones industrial average edged down 8.99 points, or 0.1
percent, to 15,967.03, the first decline for the index in five days.
The Standard & Poor's 500 index lost 3.66 points, or 0.2 percent, to
1,787.87 and the Nasdaq composite fell 17.51 points, or 0.4 percent,
to 3,931.55.
The Dow Jones industrial average and the S&P 500 crossed
round-number milestones in early trading Monday but failed to build
on those advances. The Dow crossed 16,000 and the S&P 500 hit 1,800
for the first time before falling back to close below those levels
both Monday and Tuesday.
Retailers were a key focus on Tuesday, especially with the holiday
shopping season coming up. Black Friday, the day after Thanksgiving,
is one of the biggest shopping days of the year. Consumer spending
is a critical component of the U.S. economy, so how consumers behave
during the closely watched holiday season will give investors a sign
about the outlook for growth.
Best Buy sank $4.78, or 11 percent, to $38.78 after its warning of a
tough holiday trading period ahead. The company's stock is still up
227 percent this year, making it the second-best performer in the
S&P 500 after Netflix.
Home Depot rose 71 cents, or 0.9 percent, to $80.38 after reporting
income that surpassed analysts' expectations. The company also
raised its earnings forecast for the year.
TJX Cos., which operates discount stores including T.J. Maxx and
Marshalls, climbed 63 cents, or 1 percent, to $63.12. Its income
rose 35 percent as sales improved at both U.S. and international
stores.
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Investors will turn their thoughts back to the Federal Reserve on
Wednesday.
Minutes from the Fed's October meeting will be released at 2 p.m.
and investors will scour them to get a read on the central bank's
stimulus policy. The central bank is currently buying $85 billion of
bonds a month to keep interest rates low and boost the economy. That
has underpinned a rally in stocks.
Investors were also watching JPMorgan Chase. The bank reached a
record $13 billion settlement with federal and New York State
authorities, resolving claims over the bank's sales of
mortgage-backed securities that collapsed during the U.S. housing
crisis.
JPMorgan closed 41 cents, or 0.7 percent, higher at $56.15.
In government bond trading, the yield on the 10-year Treasury note
edged up to 2.71 percent from 2.67 percent. Crude oil rose 31 cents,
or 0.3 percent, to $93.34 a barrel and gold edged up $1.20, or 0.1
percent, to $1,273.50 an ounce.
Among other stocks making big moves:
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United Continental rose $1.42, or 3.9 percent, to $37.80 after the
airline operator told investors that it will cut costs, overhaul its
website, and shift routes from Asia to Europe.
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Campbell Soup dropped $2.61, or 6.2 percent, to $39.20 after
reporting that its quarterly profit plunged 30 percent. A recall of
the recently acquired Plum Organics products also hurt results, and
the company cut its earnings forecast for the year.
[Associated
Press; KEN SWEET]
AP Markets Writer Steve
Rothwell contributed to this report.
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
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