Wall Street takes a breather after two-day rally | Reuters

Wall Street treaded water on Thursday as investors looked for fresh reasons to buy stocks following two straight days of gains. Investors this week have grown more comfortable with expectations that the Federal Reserve could raise interest rates as soon as June, with many taking the view that such a hike would reflect improvement in the country's sluggish economy.

Reuters May 27, 2016 01:15:07 IST
Wall Street takes a breather after two-day rally
| Reuters

Wall Street takes a breather after twoday rally
 Reuters

Wall Street treaded water on Thursday as investors looked for fresh reasons to buy stocks following two straight days of gains.

Investors this week have grown more comfortable with expectations that the Federal Reserve could raise interest rates as soon as June, with many taking the view that such a hike would reflect improvement in the country's sluggish economy.

After gaining 2 percent over the previous two sessions, the S&P 500 traded near flat, with a 0.96 percent dip in the materials index .SPLRCM partly offset by a 0.91 percent rise in utilities .SPLRCU.

"People are taking their foot off the gas after making a bunch of money, and now they're waiting for the next data point," said Phil Blancato, chief executive of Ladenburg Thalmann Asset Management in New York.

In line with other policymakers who have spoken in recent days, Fed Governor Jerome Powell said a rate hike may come "fairly soon" if data confirms the U.S. economy is continuing to grow and labour markets are still tightening

Data showed that while orders for U.S. durable goods surged in April, business spending plans continued to show signs of weakness, suggesting the manufacturing rout was far from over.

The Dow Jones industrial average .DJI fell 0.13 percent at 17,828.33 points and the S&P 500 .SPX edged up 0.01 percent to 2,090.77.

The Nasdaq Composite .IXIC added 0.11 percent to 4,900.41.

Apple (AAPL.O) shares rose 0.61 percent, providing the largest boost to the S&P 500, while Microsoft (MSFT.O) dipped 0.81 percent, weighing most on the index. Discount retailers Dollar General (DG.N) rose over 5 percent and Dollar Tree (DLTR.O) rallied 13 percent, both hitting record highs after reporting better-than-expected quarterly profits.

Abercrombie & Fitch (ANF.N) shares slumped 17 percent to $21.09 after the retailer posted its 13th straight quarter of sales declines.

Costco Wholesale (COST.O) rose 3.7 percent a day after posting quarterly earnings.

Advancing issues outnumbered falling ones on the NYSE by 1,545 to 1,396. On the Nasdaq, 1,415 issues fell and 1,309 advanced.

The S&P 500 index showed 21 new 52-week highs and one new low, while the Nasdaq recorded 46 new highs and 18 new lows.

(Additional reporting by Ankur Banerjee in Bengaluru; Editing by Meredith Mazzilli)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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