By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The S&P 500 snapped a four-day
winning streak after modest early-morning gains faded, leaving
U.S.stock averages in the red on Wednesday.
Defensive plays, such as utilities and consumer staples
attracted buyers and closed higher amid broader market declines.
Slippage late in the trading day, may point to consolidation after
sharp gains in the previous few sessions, which had sent the
S&P 500 to its best gain this year during Tuesday trading.
News of shots fired at the Canadian Parliament building in
Ottawa might have contributed to some of the market's jitters on
Wednesday.
The S&P 500 (SPX) slipped 14.17 points, or 0.7% to 1,927.11.
The Dow Jones Industrial Average (DJI) lost 153.49 points, or 0.9%,
to 16,461.32, dragged down by big declines in Boeing Co. The Nasdaq
Composite (RIXF) fell 36.63 points, or 0.8% to 4,382.85.
Meanwhile, the Dow Utility Average (DJU) rose 0.6% to 576.08,
closing at a record level.
Steven Wieting, global chief investment strategist at Citi
Private Bank, pointed to falling Treasurys on a days when stock
prices fell as well, saying that is indicative of consolidation
after big gains.
10-year Treasury note yields ticked up 4 basis points to
2.22%.
Colin Cieszynski, chief markets strategist at CMC Markets, in an
interview with MarketWatch said that shootings in Canada have
created uncertainty and did not help markets that had enjoyed a
runup over the past three days. He noted that the markets were
looking for consolidation.
Cieszynski expects more volatility in the next few months. "I am
not convinced that the correction is over, we will probably re-test
October lows, especially around the next Fed meeting and midterm
elections," he added.
In economic news, U.S. consumer prices rose slightly in
September owing to higher costs for food and housing, but
inflationary pressures continue to be held in check by falling
energy expenses. The uptick was in line with expectations.
Earnings: Boeing (BA) shares fell 4.5% despite beating profit
expectations. RBC Capital Markets analyst Robert Stallard said that
while profit and revenue were better than expected, the aerospace
giant has encouraged investors to look at cash over EPS for the
best growth in the next few years. "..The lack of cash in 3Q, and
only a modest change to the operating cash guidance for the year
are likely to disappoint," he wrote in a note."
Biotech firm Biogen Idec (BIIB) reported better-than-expected
third-quarter results and lifted its full-year earnings outlook.
Shares had been up in premarket trade after the report, but later
dropped 5.4%.
Yahoo Inc. (YHOO) shares rose 4.5%, after the online search
provider posted better-than-expected third-quarter results late
Tuesday.
Stocks to watch: Tekmira Pharmaceuticals Corp. (TKMR) shares
popped up 7.2%, with the company saying it has started to limit
manufacturing of a new therapeutic drug targeting the Ebola virus.
Supply of the product will be available in early December 2014 "for
potential use by various collaborators," said Tekmira.
Tesla Motors Inc. (TSLA) fell 1.8% after Daimler AG on Tuesday
said it has sold its 4% stake in the electric car maker. (Read more
about the day's notable stocks in Movers & Shakers column:
http://www.marketwatch.com/story/tesla-boeing-yahoo-likely-to-see-action-wednesday-2014-10-22.)
Other markets: In Asia, Japanese stocks pushed higher, putting
the Nikkei Average up by 2.6%. European stocks retreated after a
Spanish news report that 11 banks will fail the European Central
Bank's stress tests, however ended Wednesday with small gains.
Gold futures (GCZ4) fell $10.4 an ounce, while oil futures
(CLZ4) fell. The dollar index rose.
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