US stocks retreat from records ahead of employment data
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
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NEW YORK - Wall Street stocks retreated from records on Dec 5, taking a breather from a post-election rally ahead of the release of key US jobs data.
The broad-based S&P 500 dipped 0.2 per cent to 6,075.11, ending a streak of four straight records.
The Dow Jones Industrial Average fell 0.6 per cent to 44,765.71, while the tech-rich Nasdaq Composite Index slipped 0.2 per cent to 19,800.26.
Mr Aaron Clark, an equity portfolio manager at GW&K, said investors “are probably not willing to step in” ahead of November employment data on Dec 6.
“We’ve seen record inflows into equities,” said Mr Clark, who thinks the market could be poised for additional gains later in December.
“The path of least resistance is higher,” he said.
All three major indices notched record closes on Dec 4, boosted partly by lacklustre US economic data that strengthened expectations the Federal Reserve will cut interest rates later in December.
Among individual companies, UnitedHealth Group slumped 5.2 per cent as New York police continued to search for the killer of Brian Thompson, the CEO of the company’s health insurance division.
The incident has sparked online debate over the policies of US health insurers who are often criticised for rejecting claims. Other insurers such as Cigna and Humana also fell, by 1.7 per cent and 2.3 per cent respectively.
American Airlines surged 16.8 per cent after announcing a deal in which Citi will serve as the exclusive issuer of co-branded credit cards.
Citi, which will acquire Barclay’s credit card portfolio as an aspect of the arrangement, climbed 1 per cent. AFP
