After Market: That's 3 Down Days in a Row. Is the Bull Tuckered Out?
As the Dow closed Tuesday on its first three-day losing streak since late September, investors are wondering: Has the bull market peaked or is it just taking a breather after setting a series of record highs?
The Dow Jones industrial average (^DJI) tumbled 94 points Tuesday, but closed well off session lows. The Standard & Poor's 500 index (^GPSC) lost 6 points, and the Nasdaq composite index (^IXIC) fell 8.
Among the blue chips, DuPont (DD) was the big loser, dropping 2 percent. Disney (DIS), Pfizer (PFE) and Visa (V) all lost more than 1 percent. And 3M (MMM) lost another percent after tumbling 5 percent on Monday.
Ford (F) lost 3 percent and GM (GM) fell 2.5 percent despite strong November sales figures. Industry-wide, sales rose to an annual rate of 16.4 million, their highest level since early 2007.
But Tesla (TSLA) rallied 16 percent after Morgan Stanley called it a "top pick." Tesla shares have soared more than 300 percent over the past year.
Biotech stocks, which have had big gains for the year, had a rough day.
Regeneron (REGN) lost 3 percent. Gilead (GILD), Biogen (BIIB) and Amgen (AMGN) all lost ground. And Lexicon (LXRX) slid 5 percent on disappointing test results for its drug to treat irritable bowel syndrome.
And the day's big loser was Krispy Kreme (KKD). Shares of the doughnut maker tumbled 20 percent after the company issued a disappointing outlook.
There weren't many winners, but we can point to a couple of good ones.
Apple (AAPL) gained nearly 3 percent. UBS raised its rating to 'buy' from 'neutral' and set a 650 dollar price target for the stock. It moved above 560 a share on Tuesday.
And Abercrombie & Fitch (F) gained 6 percent. An activist investor is pushing the company to dump its controversial CEO.
What to Watch Wednesday:
- The Commerce Department releases international trade data for October at 8:30 a.m. Eastern time.
- At 10 a.m., the Commerce Department releases new home sales for September and October, and the Institute for Supply Management releases its service sector index for November.
- The Federal Reserve releases the Beige Book, its anecdotal snapshot of business conditions around the nation, covering October through mid-November at 2 p.m.