Latest Trading, forex, Immigration, Attorney  News

↑ Grab this Headline Animator

Visit Our New Website Click On Image 

Wall St dips as consumer shares weigh

US stocks late-morning
NEW YORK: Stocks fell on Tuesday on worries that rising food costs will sap supermarket profits, hurting consumer stocks and denting growing optimism about the economic outlook. Shares of Supervalu Inc nearly 7 per cent after Morgan Stanley told investors to cut holdings in the stock, saying rising food costs will crimp margins. Safeway Inc and Whole Foods Market also slid. Soybean and corn prices traded near two-year highs Tuesday.
"We’re light on consumer staples. One of our concerns is commodity prices are going to bite into profits,” said Thomas Villalta, portfolio manager for Jones Villalta Asset Management in Austin, Texas. Materials were the biggest losers, with the S&P materials index  falling 1.1 per cent, as metals prices dropped after recent gains.
The market’s pause followed a strong start to the new year on Monday and a robust rally through the end of 2010. The Dow and S&P 500 recently hit two-year highs as economic data pointed to solid US recovery.
The Dow Jones industrial average gained 2.23 points, or 0.02 per cent, to 11,672.98. The Standard & Poor’s 500 Index  dropped 4.66 points, or 0.37 per cent, to 1,267.21. The Nasdaq Composite Index fell 15.46 points, or 0.57 per cent, to 2,676.06.
S&P 500 fourth-quarter earnings are forecast to rise about 31 per cent from a year ago, according to Thomson Reuters data.
While many analysts see another year of gains for the S&P 500, Morgan Stanley offered a more contrarian view, forecasting a year-end target for the S&P 500 below the close for 2010.
Monday’s move was accompanied by a rise in volume, with more than 7.7 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq — above the 50-day moving average. The pace held strong for a second day, with 3.27 billion shares traded near midday.-Reute


Post a Comment