* Strong jump in the prices of US producers in October
* GE jumps on plan to split into three companies
* Weighing Tesla and falling consumer discretionary stocks (market closing updates)
NEW YORK, Nov 9 (Businesshala) – Wall Street closed lower on Tuesday, ending a multi-day rally of consecutive record highs as concerns over profit-taking and ongoing inflation fueled a broader sell-off.
All three major US stock indexes lost ground, marking the end of an eight-session streak of all-time closings set by the S&P 500 and Nasdaq.
After such a run, and in the absence of market-driven catalysts, market participants were driven to take profits.
“We’ve had an incredible run, so it’s perfectly normal to blow some air out of the balloon,” said Ryan Detrick, chief market strategist at LPL Financial in Charlotte, North Carolina.
“It’s a reminder that stocks can’t move every day,” Detrick said. “We are seeing some oversold weakness today, nothing more concerning.”
The Labor Department’s Producer Prices (PPI) report shows inflation continues to rise as ongoing goods and labor supply challenges send price increases ahead of the US Federal Reserve’s average annual 2% inflation target.
Wednesday’s CPI report will be examined for clues to the extent to which producer prices are being passed along to the consumer, whose spending accounts for about 70% of the US economy.
According to preliminary data, the S&P 500 closed 16.25 points, or 0.35%, down at 4,685.45, while the Nasdaq Composite was down 95.19 points, or 0.60%, at 15,887.16. The Dow Jones Industrial Average fell 113.66 points, or 0.31%, to end at 36,318.56.
The finish line appears to be in sight for the third-quarter earnings season, with 445 of the S&P 500 reporting companies. According to Refinitiv, 81% of them have defeated Consensus.
General Electric Co grew after the 129-year-old industrial conglomerate announced that it would split into three separate public companies to ease its business.
Tesla Inc. widened its losses, weighing the consumer discretionary sector after Chief Executive Elon Musk’s Twitter poll, an offer to sell a tenth of his stake, received 57.9% of the vote in favor of the sale. This raised questions about whether Musk violated the agreement with the US Securities and Exchange Commission (SEC).
Online retail trading app Robinhood Markets Inc. reported a security breach affecting nearly 5 million of its customers, plunging its shares.
On the other hand, upbeat quarterly results boosted shares of video game maker Zynga Inc. and homebuilder DR Horton.