U.S. stocks fell Tuesday, ending at their lowest
Post# of 63824
Posted On: 09/09/2014 5:08:22 PM
U.S. stocks fell Tuesday ,
ending at their lowest levels in more than two weeks.
The Dow Jones Industrial Average dropped 97.55 points, or 0.6%, to 17013.87. The S&P 500 index shed 13.10 points, or 0.65%, to 1988.44 and the Nasdaq Composite Index fell 40 points, or 0.9%, to 4552.29. The three indexes closed at their lowest levels since August 22.
Apple Inc. AAPL -0.38% was in the spotlight as the company unveiled a mobile payments system, a line of Internet-connected watches and two larger versions of its signature iPhone. Apple shares saw heavy trading, with cumulative volume on Tuesday totaling more than three times its 30-day average, according to FactSet. Shares ended down 0.4% after rising for much of the session.
Tuesday's losses for the broader market come after the S&P 500 notched its 33rd record close for the year Friday at 2007.71, marking a 4.3% gain from August 1. The S&P recovered from a midsummer swoon to close above 2000 for the first time in late August.
Traders said there was no specific news driving losses on Tuesday. "The market is showing some levels of exhaustion, particularly after this huge run up in the S&P," said Jeffrey Yu, head of single-stock derivatives trading at UBS AG.
The Federal Reserve is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008. That has left some investors wondering how much further stocks can rise. The S&P 500 is up 8.3% this year through Monday's close. Gains have come amid evidence of an economic recovery and low interest rates, which have diminished the appeal of other assets such as bonds.
Kent Croft, president and portfolio manager at Croft Leominster, said stocks are reasonably valued, which will make it harder for the market to hit new highs. The S&P 500 has a forward price-to-earnings ratio of 15.7, versus its 10-year average of 13.9, according to FactSet. "The market has room to go higher, but it's just not going to be as easy," said Mr. Croft.
ending at their lowest levels in more than two weeks.
The Dow Jones Industrial Average dropped 97.55 points, or 0.6%, to 17013.87. The S&P 500 index shed 13.10 points, or 0.65%, to 1988.44 and the Nasdaq Composite Index fell 40 points, or 0.9%, to 4552.29. The three indexes closed at their lowest levels since August 22.
Apple Inc. AAPL -0.38% was in the spotlight as the company unveiled a mobile payments system, a line of Internet-connected watches and two larger versions of its signature iPhone. Apple shares saw heavy trading, with cumulative volume on Tuesday totaling more than three times its 30-day average, according to FactSet. Shares ended down 0.4% after rising for much of the session.
Tuesday's losses for the broader market come after the S&P 500 notched its 33rd record close for the year Friday at 2007.71, marking a 4.3% gain from August 1. The S&P recovered from a midsummer swoon to close above 2000 for the first time in late August.
Traders said there was no specific news driving losses on Tuesday. "The market is showing some levels of exhaustion, particularly after this huge run up in the S&P," said Jeffrey Yu, head of single-stock derivatives trading at UBS AG.
The Federal Reserve is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008. That has left some investors wondering how much further stocks can rise. The S&P 500 is up 8.3% this year through Monday's close. Gains have come amid evidence of an economic recovery and low interest rates, which have diminished the appeal of other assets such as bonds.
Kent Croft, president and portfolio manager at Croft Leominster, said stocks are reasonably valued, which will make it harder for the market to hit new highs. The S&P 500 has a forward price-to-earnings ratio of 15.7, versus its 10-year average of 13.9, according to FactSet. "The market has room to go higher, but it's just not going to be as easy," said Mr. Croft.
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