(Updates to market close)
By Stephen Culp
NEW YORK, Nov 17 (Reuters) - U.S. stocks retreated from
record closing highs on Tuesday, ending lower as surging
COVID-19 cases, the growing threat of a fresh round of economic
lockdowns and weak retail sales data dampened the euphoria
caused by potential vaccine breakthroughs.
The sell-off was a reversal of Monday's rally, in which the
blue-chip Dow reached its first record closing high since before
the pandemic.
The Nasdaq's loss was capped by surging Tesla Inc TSLA.O
shares.
Monday's rally was prompted by Moderna Inc's MRNA.O
announcement that its COVID-19 vaccine candidate appears to be
94.5% effective in preventing infection. But a recent surge in new coronavirus cases across the
United States have led several governors to enact new
restrictions to prevent the disease from spiraling out of
control. "It's going to be the vaccine versus the virus,
flip-flopping back and forth until we get to the point where the
vaccine is rolled out," said Joseph Sroka, chief investment
officer at NovaPoint in Atlanta. "It's like standing on the edge
of a valley - I can look down and see the rising case loads or I
can look across to the vaccine."
The retail sales report released by the Commerce Department
showed spending decelerating as the holiday shopping season
approaches amid a lack of forthcoming fiscal relief from
Washington. Unofficially, the Dow Jones Industrial Average .DJI fell
166.69 points, or 0.56%, to 29,783.75, the S&P 500 .SPX lost
17.32 points, or 0.48%, to 3,609.59 and the Nasdaq Composite
.IXIC dropped 24.79 points, or 0.21%, to 11,899.34.
Third-quarter earnings season is in its final stretch, with
465 of the companies in the S&P 500 having reported. Of those,
84.5% have beaten consensus estimates, according to Refinitiv
data.
This week brings quarterly results from series of
high-profile retailers.
Walmart Inc WMT.N beat profit expectations and posted a
bigger-than-expected 6.4% annual growth in same-store sales.
Home improvement retailer Home Depot Inc HD.N also beat
quarterly profit and sales estimates as consumers used
stay-at-home restrictions to focus on DIY home projects.
But Kohl's Corp KSS.N rose sharply after the department
store chain posted a surprise quarterly profit and forecast
strong margins for the upcoming holiday season.
Target Corp TGT.N and Lowe's Companies Inc LOW.N results
are expected before the bell on Wednesday.
Shares of Tesla jumped after S&P Dow Jones Indices announced
it would add the electric automaker to the S&P 500 on Dec. 21.
Amazon.com Inc AMZN.O launched an online pharmacy in the
United States, sending shares of rival drug retailers such as
Walgreens Boots Alliance Inc WBA.O CVS Health Corp CVS.N
plunging.