U.S. stocks decline for second straight day

Tech companies led U.S. stocks lower Wednesday, giving the market its biggest loss since early September.

Technology companies led U.S. stocks lower Wednesday, giving the market its biggest loss since early September.

Grocery stores and packaged foods and beverage companies also accounted for much of the decline. Energy stocks fell as the price of crude oil closed lower a day after its biggest loss since October. Banks and phone companies eked out modest gains.

The latest slide extended the market’s losses from a day earlier and added to its pullback in November.

Unlike October’s broad market rally, fewer stocks and sectors have been notching gains this month, and the latest market decline reflects that, noted Bruce Bittles, chief investment strategist at Baird.

“And that’s exemplary of a market that’s losing momentum, and that’s the real story here,” Bittles said. “It means the market is struggling here, and it could mean that a lot of the good news on the economy, earnings and even the potential for a tax-reform bill are to a great extent already built into current prices.”

The Standard & Poor’s 500 index fell 14.25 points, or 0.6 percent, to 2,564.62. The Dow Jones industrial average lost 138.19 points, or 0.6 percent, to 23,271.28. The Nasdaq composite slid 31.66 points, or 0.5 percent, to 6,706.21. The Russell 2000 index of smaller-company stocks gave up 7.16 points, or 0.5 percent, to 1,464.09.

The major indexes are all in the red for the month, but still near their most recent record highs.

Stocks were headed lower from the get-go on Wednesday as investors weighed a batch of new government data on inflation, retail sales and manufacturing.

The Commerce Department said retail sales rose 0.2 percent in October, while a closely watched report by the Federal Reserve Bank of New York showed manufacturing expanded at a slower pace this month in New York, but remained at a healthy level. In addition, the Labor Department said consumer prices edged up 0.1 percent last month, the smallest gain in three months. That followed a report earlier this week showing that prices at the wholesale level spiked last month.

“The inflation data that was released this week are basically giving a green light to the Fed to raise rates,” said Quincy Krosby, chief market strategist at Prudential Financial.

Investors were keeping an eye on Washington, where Senate Republicans began pushing their version of a major tax overhaul that would slash corporate taxes.

But the Senate measure was complicated by the last-minute inclusion of a repeal of the section of the Affordable Care Act that requires Americans to get insurance coverage. The legislative push also hit a snag Wednesday, when Sen. Ron Johnson of Wisconsin said he opposes the GOP tax bill, saying it helps corporations more than other businesses.

RICHARD DREW — THE ASSOCIATED PRESS Specialist Mario Picone works at his post on the floor of the New York Stock Exchange, Wednesday.