By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended mostly lower on
Wednesday, with the S&P 500 and the Dow Jones Industrial
Average extending their losing streak to four straight
sessions.
Upbeat economic reports appeared to reinforce worries that later
this month the Federal Reserve could start to taper its bond-buying
program that has supported equities. The main indexes had all moved
into positive territory following a report of progress toward a
U.S. budget deal, but those gains faded.
Many strategists have been expecting a market pullback given
recent advances. Last week, the S&P 500 achieved its eight
straight weekly gain, and the benchmark index remains up 25.7% in
the year to date.
"The market has done exceptionally well and was bound to pull
back sooner or later," said Peter Cardillo, chief market economist
at Rockwell Global Capital.
Read a blow-by-blow of the market day in MarketWatch's stock
market live blog.
The S&P 500 (SPX) dipped 2.34 points, or 0.1%, to close at
1,792.81, retreating further below the milestone level of 1,800.
The Dow Jones Industrial Average(DJI) fell 24.85 points, or 0.2%,
to end at 15,889.77, staying below its own big round number of
16,000.
The Nasdaq Composite (RIXF) bucked the negative trend, rising
0.80 point to finish at 4,038. The tech-heavy index snapped a
two-day losing streak and held above the 4,000 level.
On Tuesday, stocks lost ground on uncertainty over when the Fed
will begin to pare its bond-buying program and on jitters about
whether the market rally is overextended.
* Today's market-moving news:Private-sector hiring in November
was the hottest in a year, as 215,000 jobs were added, according to
a report from Automatic Data Processing. In addition, a
new-home-sales report beat forecasts, and the Fed's Beige Book
report was mostly encouraging, but a services gauge missed
expectations. Upbeat economic data can weigh on equities if it
reinforces worries the Fed could move as early as December to scale
back its bond-buying program, even though an improving economy
generally helps the market over the longer run. Meanwhile,
Bloomberg News reported Wednesday that U.S. budget negotiators are
near a deal in which Democrats would accept fresh revenue from user
fees and Republicans would agree to more federal spending, steps
that could avoid another government shutdown next year.
* Today's movers & shakers: CF Industries Holdings Inc.
shares rallied 10.7% after the fertilizer maker indicated it may
return more cash to shareholders and RBC Capital Markets started
coverage with a sector perform rating. Express Inc. tumbled 23%
after the clothing retailer cut its full-year outlook.
Hewlett-Packard Co. rose 2.3% after a positive Morgan Stanley
report. See: Movers & Shakers column.
* The buzz: After a historic bull-market run, a notable group of
analysts is warning that all of this could be a bubble that is
about to pop, according to John Nyaradi, a contributor to
MarketWatch's Trading Deck. Another Trading Deck contributor, Kevin
Marder, says it's not "time to run for the hills," but it is time
to be "buying selectively."
* Other markets: Japan's Nikkei 225 dropped 2.2% as the yen
rebounded against the dollar. European stocks closed lower. Oil and
gold both advanced.
* Other must-read stories on MarketWatch:Asian stocks drop as
yen rebounds hurts Japan Private-sector job gains hottest in a
year: ADPLook twice at most hated market in the world: Russia
Other must-read stories on MarketWatch:
Asian stocks drop as yen rebounds hurts Japan
Private-sector job gains hottest in a year: ADP
Look twice at most hated market in the world: Russia
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