Bulls tired after big runDow dips after longest up streak in 80 years; S&P 500, Nasdaq slides too as investors step back.NEW YORK (CNNMoney.com) -- Stocks slipped Tuesday morning as investors pled exhaustion after pushing the Dow industrials higher for 24 out of the last 27 sessions - matching an 80-year-old Wall Street record. The Dow Jones industrial average (down 72.16 to 13,240.81, Charts) lost about 0.5 percent just over an hour into the session, after having ended the previous day at an all-time high for the fifth session in a row. The broader S&P 500 (down 7.60 to 1,501.88, Charts) index also fell about 0.5 percent after ending the previous session less than 20 points from its record high hit in March 2000. That was at the tail end of the market's last big rally, fueled by the 1990s tech boom. The tech-heavy Nasdaq composite (down 17.19 to 2,553.76, Charts) lost 0.6 percent after ending the previous session not far from a six-year high. The gains Monday were an extension of the recent rally, fueled by earnings and merger news. Although Tuesday brought more positive company news, investors were reluctant to extend the run, particularly ahead of Wednesday's Federal Reserve policy meeting. Central bank policymakers are widely expected to keep a key short-term interest rate unchanged at 5.25 percent, as they have for the previous six meetings. However, as always, investors will be focused on what the accompanying statement says about the economy and the future of Fed rate policy. Reuters (down $2.50 to $74.00, Charts) and Thomson Corp. (down $2.28 to $40.55, Charts) confirmed that they are considering a merger that would value Reuters Group at $17.7 billion and create the world's biggest news and financial data company. Arcelor Mittal (down $1.52 to $55.96, Charts), a Netherlands-based steel producer, is reportedly considering buying U.S.-based AK Steel (up $3.05 to $35.12, Charts, Fortune 500) for nearly $4.5 billion. In earnings news, Dow component and tech leader Hewlett-Packard (up $0.70 to $44.52, Charts, Fortune 500) said that second-quarter earnings and revenue will top estimates, thanks to strong sales of personal computers and servers. Shares gained 1 percent. Shares of AQuantive (up $3.16 to $32.87, Charts) jumped 10 percent in unusually active trading after the Web marketing firm reported higher quarterly earnings that topped estimates. Market breadth was negative. On the New York Stock Exchange, losers beat winners 3 to 1 on volume of 350 million shares. On the Nasdaq, decliners topped advancers by more than 3 to 1 on volume of 475 million shares. U.S. light crude oil for June delivery gained 5 cents to $61.52 a barrel on the New York Mercantile Exchange. COMEX gold for June delivery fell $4.10 to $686.30 an ounce. Treasury prices inched higher, lowering the yield on the 10-year note to 4.62 percent from 4.63 percent late Monday. Treasury prices and yields move in opposite directions. In currency trading, the dollar gained against the euro and fell against the yen. |
|