partlycloudy
Wednesday September 2nd, 2015 5:47PM

Stocks fall back from record levels; Dow down 101

By The Associated Press
NEW YORK (AP) -- Stocks fell back from record levels on Wednesday as investors decided it was better to play it safe.

A day after the Standard & Poor's 500 index climbed above 1,900 for the first time, investors turned their backs on stocks that would benefit more than others in a reviving economy. Consumer discretionary stocks, a group that includes luxury retailers and entertainment companies, dropped the most. Industrial and technology companies also fell, and riskier, small-company stocks resumed a sell-off after rebounding on Monday.

Instead, investors bought safe and steady stocks. Utility and telecom stocks, which investors favor when the markets get choppy, rose the most in the S&P 500. U.S. government bonds also rallied, pushing the yield on the 10-year Treasury note to its lowest in more than six months, another sign that investors were favoring safer assets.

"There's some internal self-correction and rotation going on beneath the surface," said Jim Russell, a regional investment director at US Bank. Russell said stocks were getting closer to being fairly valued.

The Standard & Poor's 500 index fell 8.92 points, or 0.5 percent, to 1,888.53. The Dow Jones industrial average dropped 101.47 points, or 0.6 percent, to 16,613. The Nasdaq composite fell 29.54 points, or 0.7 percent, to 4,100.63.

The Russell 2000 index, a gauge of small-company stocks, fell 18.02 points, or 1.6 percent, to 1,103.14. The index has slumped 9 percent since peaking March 4 as investors sold riskier stocks.

Bonds benefited from investor's appetite for less risky assets.

The yield on the 10-year Treasury note, which falls when the price of the bond rises, dropped to the lowest it's been since October. The yield declined to 2.54 percent from 2.61 percent late Tuesday.

"People are rotating out of equities and into bonds," said Mark Pibl, U.S. fixed income strategists at Canaccord Genuity, a wealth manager, of Wednesday's move in the bond market.

Bonds have surged this year because inflation remains low and investors have become concerned that the economy may not grow as quickly as previously anticipated. Barclays' index of Treasury bonds maturing in 20 years or more has gained 10.6 percent, outperforming the 2.2 percent rise for the S&P 500 stock index.

In corporate news, Fossil, a maker of watches, jewelry and accessories, was the biggest decliner in the S&P 500.

Fossil fell $11.45, or 10.3 percent, to $100 after the company said late Tuesday that its first-quarter net income fell 8 percent, despite sales gains across all its business segments. The results beat market expectations, but the company gave a weak forecast.

Deere was another company to decline after reporting earnings.

The maker of farm equipment fell $1.91, or 2 percent, to $91.70 after the company reported a decline in second-quarter net income because of weaker demand for its products. The company also cut its full-year sales forecast.

Almost all of the companies in the S&P 500 have finished reporting their first-quarter earnings. Earnings rose 3.3 percent for the period, according to S&P Capital IQ. That compares with growth of almost 8 percent in the fourth quarter.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 8 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 8 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 8 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 8 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 8 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 8 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 8 months ago )
Local/State News
The Latest: Kentucky clerk says she is unable to obey judge's order to issue marriage licenses
FRANKFORT, Ky. (AP) — The latest on a county clerk in Kentucky who has repeatedly refused to issue marriage licenses (all times local):4:54 p.m.A Kentucky county clerk says she is unable to obey a fed...
5:03PM ( 44 minutes ago )
Watchdog: 900,000 veterans have pending health care requests; many of those may be deceased
WASHINGTON (AP) — Nearly 900,000 military veterans have officially pending applications for health care from the Department of Veterans Affairs, the department's inspector general said Wednesday, but...
4:59PM ( 47 minutes ago )
Obama seals legacy-defining Iran deal as Senate Dems gather 34 votes to stymie GOP resolution
WASHINGTON (AP) — Overcoming ferocious opposition, President Barack Obama secured a legacy-defining foreign policy victory Wednesday as Senate Democrats clinched the necessary votes to ensure the Iran...
4:38PM ( 1 hour ago )
US stocks rebound a day after plunging; Dow up 293 at close
NEW YORK (AP) — U.S. stocks are closing broadly higher as the market bounces back from a plunge the day before.
4:36PM ( 1 hour ago )
Evacuations orders lifted around Oregon wildfire that has destroyed 43 homes
JOHN DAY, Ore. (AP) — Firefighters battling a destructive wildfire near John Day are allowing people who have been evacuated for weeks to return to their homes.The last evacuation alerts were lifted W...
3:29PM ( 2 hours ago )