By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks drifted lower in a choppy
trading session Wednesday, putting the S&P 500 and Nasdaq
Composite on track to end their six-day winning streaks.
Investors also focused on a batch of mixed earnings releases,
while awaiting results after the bell from heavyweights Apple, Inc.
and Facebook, Inc. Slightly disappointing manufacturing and housing
data dampened the sentiment earlier.
The S&P 500 (SPX) fell 3 points, or 0.2%, at 1,876.42. The
Dow Jones Industrial Average (DJI) slipped 8 points, or 0.1%, to
16,505.92. The Nasdaq Composite (RIXF) is down 27 points, or 0.7%,
to 4,133.70.
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action.
The S&P 500 has been trading near record levels, while the
blue-chip index is less than 100 points off its record closing
level reached on Dec. 31, 2013.
Uri Landesman, president of Platinum Partners hedge fund, says
this market has been strong and resilient in the face of risks.
"We expect markets to start going down and have a meaningful
correction, 250 points or more on the S&P 500, and we have been
surprised how it is hanging there," Landesman said.
"Markets are waiting for a catalyst, and once the selling begins
it may be quite drastic as there are no technical levels to support
it. It will be partly a regression to mean, partly high valuations
and partly because of risks in the global economy," he added.
In economic news, sales of new single-family homes plunged 14.5%
to a seasonally adjusted annual rate of 384,000, the lowest level
since July, with drops in three of four U.S. regions, the
government reported Wednesday. Economists polled by MarketWatch had
expected a March sales pace of 450,000.
Markit's preliminary reading on the manufacturing purchasing
managers' index for April slipped to 55.4, disappointing investors
who were expecting a slight rise from March.
Earnings reports remain the main attraction on Wednesday. Boeing
Co. (BA) reported an 8% rise in first-quarter sales ahead of the
open, sending shares up 2.1%.
Delta Air Lines Inc. (DAL) shares rose 4.7% after the carrier
saidoperating revenue improved 5%, while Dow Chemical Co. (DOW)
rose 1% after reporting a rise in first-quarter profit.
Plug Power slides, Gilead gains
Shares of Plug Power Inc. (PLUGD) slid 6% after the fuel-cell
maker announced a secondary offering of stock.
AT&T Inc. (T) dropped 3.3% after the telecom late Tuesday
reported a first-quarter profit of $3.65 billion, or 70 cents a
share, compared with $3.7 billion, or 67 cents a share, a year
ago.
Yum Brands Inc. (YUM) shares rose 1.9% after the parent of KFC,
Taco Bell and Pizza Hut late Tuesday reported that profit rose 18%,
buoyed by a rebound in Chinese demand.
Gilead Sciences Inc. (GILD) picked up 3.1% after the biotech
firm said late Tuesday its first-quarter profit more than doubled
to $1.33 a share.The company also said sales of its hepatitis C
drug Sovaldi hit $2.27 billion worldwide in the quarter.
Procter & Gamble Co. (PG) said its third-quarter profit rose
1.7% as expenses fell, though sales also dropped slightly. Shares
inched 0.2% lower.
In the afternoon, two tech heavyweights will be the center of
attraction. Apple Inc. (AAPL) is expected to post second-quarter
earnings of $10.19 a share when it reports after the bell, while
Facebook Inc. (FB) is forecast to report earnings of 24 cents a
share in the first quarter.
In other financial markets, European benchmarks traded in
negative territory, with investors eyeing developments in Ukraine.
Tensions flared up again, with the U.S. planning to move troops
near Russia and Kiev looking set on restarting military action
against pro-Russia activists. Asian stocks closed mixed.
Most metals advanced, with gold (GCM4) rebounding from a
three-week low reached on Tuesday. Oil declined (CLM4), while the
dollar (DXY) also moved lower.
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