NEW YORK (AP) — U.S. stocks sank yesterday, pulling indexes farther below
record highs hit on Monday. The drop was modest but broad: Nine of the 10 sectors in the Standard
Poor’s 500 index lost ground.
Given the market’s recent run, it’s natural for investors to turn cautious, said Terry Sandven,
senior equity strategist at U.S. Bank Wealth Management. On Monday, the SP 500 rose to a
record while the Nasdaq crossed the 5,000 mark for the first time in nearly 15 years.
“We’re in wait-and-see mode,” Sandven said. “Prices are definitely stretched, especially when
earnings expectations are being set lower.”
The SP 500 gave up 9.25 points to finish at 2,098.53.
The Dow Jones industrial average lost 106.47 points, to 18,096.90. The Nasdaq composite fell
12.76 points, to 4,967.14.
Alcoa’s stock sank 4 percent on news that analysts at Bank of America expect aluminum prices to
decline as China increases its exports. Alcoa lost 59 cents to $14.59.
Across the SP 500, first-quarter corporate earnings are a concern. In early December,
analysts projected an 8.6 percent increase. Today, they expect earnings to shrink 2.6 percent.