Investing.com - After pushing toward their highest level since May 2008 on Thursday, U.S. stocks fell on bearish housing data and profit taking.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.18%, the S&P 500 gave back 0.57% and the Nasdaq Composite dipped 0.46%.
Stocks reversed their gains after a report indicated that new home sales unexpectedly declined in December sending investors into safer assets.
Painting the earlier bullish picture, durable goods orders climbed 2.1% beating expectations in the U.S.
Stocks surged higher after Fed Chief Ben Bernanke stated yesterday, “We are prepared to provide further monetary accommodation if employment is not making sufficient progress toward our assessment of its maximum level, or if inflation shows signs of moving further below its mandate consistent rate. Bond buying is an option that’s certainly on the table.”
In addition to the Fed’s vow to keep interest rates low until at least late 2014.
Bruce McCain of KeyCorp explained the housing number sell off to Bloomberg, “It’s a bit of cold water in the face. We are in risk territory because we have come a long way in the market and in terms of optimism on the economy.”
News that the cost of insuring against default in European corporate debt dropped to the lowest in nearly five months adding to the stock positive sentiment.
Banks led the decline with Wells Fargo and Fifth Third Bancorp dropping 3.3%.
While homebuilders followed lower with PulteGroup and Lennar Corp giving back over 2.1%.
Phone giant, AT&T fell 2.3% after forecasting an earnings miss.
On line broker, E*Trade Financial plunged 15% after missing estimates and a ratings cut at Sandler O’Neill & Partners.
Investors are awaiting preliminary U.S GDP, consumer sentiment and inflation data on Friday
In other news, the World Economic Forum is underway in Davos.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.18%, the S&P 500 gave back 0.57% and the Nasdaq Composite dipped 0.46%.
Stocks reversed their gains after a report indicated that new home sales unexpectedly declined in December sending investors into safer assets.
Painting the earlier bullish picture, durable goods orders climbed 2.1% beating expectations in the U.S.
Stocks surged higher after Fed Chief Ben Bernanke stated yesterday, “We are prepared to provide further monetary accommodation if employment is not making sufficient progress toward our assessment of its maximum level, or if inflation shows signs of moving further below its mandate consistent rate. Bond buying is an option that’s certainly on the table.”
In addition to the Fed’s vow to keep interest rates low until at least late 2014.
Bruce McCain of KeyCorp explained the housing number sell off to Bloomberg, “It’s a bit of cold water in the face. We are in risk territory because we have come a long way in the market and in terms of optimism on the economy.”
News that the cost of insuring against default in European corporate debt dropped to the lowest in nearly five months adding to the stock positive sentiment.
Banks led the decline with Wells Fargo and Fifth Third Bancorp dropping 3.3%.
While homebuilders followed lower with PulteGroup and Lennar Corp giving back over 2.1%.
Phone giant, AT&T fell 2.3% after forecasting an earnings miss.
On line broker, E*Trade Financial plunged 15% after missing estimates and a ratings cut at Sandler O’Neill & Partners.
Investors are awaiting preliminary U.S GDP, consumer sentiment and inflation data on Friday
In other news, the World Economic Forum is underway in Davos.