Dow set to break 12-day winning run as Trump speech looms
US stocks traded lower on Tuesday, setting up the Dow to snap a 12-day winning streak, as financial and consumer discretionary stocks weighed and investors awaited US President Donald Trump’s speech to a joint session of Congress on Tuesday night.
Trump’s promises of tax reform, infrastructure spending and simpler regulations have sparked a post-election rally that has propelled the main US market indexes to record highs.
“What we’re looking for tonight is just more meat on those bones,” said Mark Spellman, portfolio manager at Alpine Funds in Purchase, New York.
“We’ve gotten these generalities and we’re trying to figure out how things are going to be constructed,” he said.
The address at 9:00 p.m. ET (0200 GMT) could touch on tax reforms, defense spending and his plans to overhaul the US healthcare system.
But on Wall Street, financial and consumer discretionary stocks dropped and pulled down the three major indexes, which were set for their worst one-day decline in four weeks.
Target slumped 12.2% and was on track for its worst day since December 2008, after the retailer’s full-year profit forecast missed estimates and the company said it would take a $1 billion hit to its operating profit.
Also weighing on sentiment was data that showed US economic growth slowed in the fourth quarter.
The dollar dropped 0.27% to 100.85 against a basket of major currencies, while safe-haven gold edged up 0.34%.
At 12:23 p.m. ET the Dow Jones Industrial Average was down 35.54 points, or 0.17%, at 20,801.9, the S&P 500 was down 7.9 points, or 0.33%, at 2,361.85 and the Nasdaq Composite was down 36.94 points, or 0.63%, at 5,824.96.
Seven of the 11 major S&P sectors were lower, led by financials and discretionary.
Traditionally defensive plays, utilities and consumer staples, were higher.
Charles Schwab was the top drag on the financial sector after the company said it would cut its ETF trade and online equity fees, following similar cuts by Fidelity Investments. TD Ameritrade dropped 10.5% and was the biggest loser on the Nasdaq.
Priceline rose 5.9% to $1,728.87, offsetting Target’s impact on the S&P, following quarterly revenue that blew past estimates.
Declining issues outnumbered advancers on the NYSE by 1,878 to 961. On the Nasdaq, 2,121 issues fell and 674 advanced.
The S&P 500 index showed 46 new 52-week highs and four new lows, while the Nasdaq recorded 97 new highs and 38 new lows.