Wall St. Weighed by Apple But Banks Shine on

Date: 31 August 2016 - 21:35

News ID: ۳۰۷۰۲

NEW YORK (Reuters) -Apple Inc was the largest weight on U.S. stock indexes after antitrust regulators ordered the company to pay about $14.5 billion in back taxes to the Irish government, but gains in bank shares partly offset the decline.
The S&P 500 fell for the fourth time in five sessions, but was still within 1 percent of its record closing high set earlier this month. Cyclical sectors, which are expected to perform better in an expanding economy, have taken the lead in the past few weeks as economic data paints a rosier picture of the U.S. economy.
U.S. consumer confidence rose to an 11-month high in August, with households more upbeat about the labor market. Payrolls data on Friday could strengthen the case for higher U.S. interest rates, as has been hinted over the past week by Federal Reserve officials.
Bets on a bottoming out of bond yields have given support to bank stocks of late. The S&P 500 financial sector .SPSY is up 1.8 percent so far this week, compared with a 0.3 percent advance for the S&P.
"The economy is doing well, the labor market is still doing well, there's reasons to think (interest) rates have bottomed and that is good for financials," said Paul Zemsky, chief investment officer, Multi-Asset Strategies and Solutions at Voya Investment Management in New York.
S&P 500 financials closed at their highest level since early December, right before the Fed raised interest rates for the first time in nearly 10 years.
Cyclical sectors should continue to lead the stock market despite Tuesday's declines in all sectors outside financials, Zemsky said.
"A day is not a way to look at the trend," he said.
The Dow Jones industrial average fell 48.69 points, or 0.26 percent, to 18,454.3, the S&P 500 lost 4.26 points, or 0.2 percent, to 2,176.12 and the Nasdaq Composite dropped 9.34 points, or 0.18 percent, to 5,222.99.
Hershey dropped 11.2 percent to $99.19 after Mondelez abandoned its pursuit to buy the chocolate maker on Monday. Mondelez rose 3.7 percent.
United Continental Holdings rallied 8.6 percent to close at $50.99 after it hired the No. 2 executive at rival American Airlines as United's board and chief executive officer seek to shape a new strategy and boost the airline's stock price. American shares rose 2.4 percent to $37.05.