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US STOCKS-Wall St rally loses steam after record run

Published 06/11/2019, 16:35
Updated 06/11/2019, 16:36
© Reuters.  US STOCKS-Wall St rally loses steam after record run
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(For a live blog on the U.S. stock market, click LIVE/ or

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* Tech stocks weigh on Nasdaq, S&P

* Energy sector top decliner on S&P as oil prices fall

* Match Group falls after weak Q4 revenue forecast

* CVS, Humana gain on upbeat earnings, forecast

* Indexes: Dow and S&P flat, Nasdaq down 0.21%

(Updates to open)

By Arjun Panchadar

Nov 6 (Reuters) - U.S. stocks retreated from record highs on

Wednesday, halting a rally that has been fuelled by signs of

progress in trade talks between Washington and Beijing and a

largely upbeat corporate earnings season.

Losses in shares of Microsoft Corp MSFT.O and Facebook Inc

FB.O weighed the most on the benchmark index and the Nasdaq.

The S&P 500 energy sector .SPNY fell 0.39% and was the

biggest decliner as oil prices fell due to a build up in U.S.

crude stocks and weak euro zone economic figures. O/R

"There is no game changing catalyst on the agenda today that

we could see moving these markets distinctively higher," said

Art Hogan, chief market strategist at National Securities in New

York.

Investor focus remained on further signs of progress on

U.S.-China trade relations, with latest reports saying the two

sides were still working out the details of a "phase one" deal,

which could be signed later this month. Market players are also closely tracking data to assess the

fallout of the trade war on the domestic economy. A fresh crop

of indicators this week has been mixed, with the ISM services

index showing a better-than-expected reading, but nonfarm

productivity falling. The third-quarter earnings season continues to impress, with

the bulk of S&P 500 companies besting analysts' profit

expectations.

To some extent, however, those figures reflect significantly

lowered expectations of analysts who had forecast the first

earnings drop since late 2016, while doubts still linger about

the market's ability to rally much further this year.

At 10:12 a.m. ET the Dow Jones Industrial Average .DJI was

up 4.07 points, or 0.01%, at 27,496.70, and the S&P 500 .SPX

was up 1.08 points, or 0.04%, at 3,075.70. But the Nasdaq

Composite .IXIC was down 17.97 points, or 0.21%, at 8,416.71.

Humana Inc HUM.N rose 2.4% as the health insurer reported

quarterly profit that beat estimates on higher sales of its

government-backed Medicare Advantage health plans. CVS Health Corp CVS.N gained 4.8% after the pharmacy chain

posted a better-than-expected quarterly profit, boosted by its

Aetna health insurance business and pharmacy benefit management

unit. But shares of Capri Holdings Ltd CPRI.N dropped 1.4% after

missing profit estimates, as protests in Hong Kong and negative

Chinese consumer reaction to an "incorrectly labeled" T-shirt

hurt sales of its Versace brand. Match Group Inc MTCH.O slumped 6.5% as the Tinder-owner

forecast fourth-quarter revenue below estimates in the face of

stiff competition from rival online dating services. Its parent

firm, IAC/InterActiveCorp IAC.O , dropped 5.8%. HP Inc HPQ.N jumped 9.4% after a report that Xerox

Holdings Corp XRX.N was considering an offer for the personal

computer maker at a premium to its market value of about $27

billion. Xerox shares were down 2.5%. Advancing issues outnumbered decliners by a 1.06-to-1 ratio

on the NYSE and for a 1.43-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and one new

low, while the Nasdaq recorded 42 new highs and 29 new lows.

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