By Wallace Witkowski and Victor Reklaitis, MarketWatch
Target jumps after earnings, while Lowe's slumps
The Dow Jones Industrial Average traded lower Wednesday, taking a breather a day after the blue-chip gauge turned in a seventh winning session in a row and its fourth straight record close.
The Dow Jones Industrial Average declined 54 points, or 0.3%, to 18,869, led lower by 2% declines in both Goldman Sachs Group Inc.(GS) and J.P. Morgan Chase & Co.(JPM).
"Over the past week, markets had rallied on combination of two things--a relief after days of pessimism, and optimism after a clear outcome with hopes of stimulus-lead pickup in economic growth," said Kate Warne, investment strategist at Edward Jones.
"The modest pullbacktoday is nothing more than a consolidation after a sharp and unexpected rally," Warne said.
The S&P 500 shed 5 points, or 0.2%, to 2,175 with eight of the 11 main sectors losing ground. Financials, which rallied more than 10% over the past several sessions, were hardest hit on Wednesday, down 1.3%. Meanwhile, technology stocks rose 0.7%, leading the gainers.
Read:Bank stocks could see big gains in months ahead if Trump gets his way (http://www.marketwatch.com/story/bank-stocks-could-record-big-gains-in-the-months-ahead-if-donald-trump-gets-his-way-2016-11-16)
"Technology stocks that suffered postelection began to turn around on Tuesday and we are seeing continuation of that today," Warne said, adding that the sector is likely to see more growth.
The tech-heavy Nasdaq Composite Index was trading higher, up 13 points, or 0.3% at 5,289.
Despite Wednesday's pullback, technical analysts said the S&P 500 may follow the Dow industrials and reach new highs in the short term.
"Short-term overbought conditions could generate consolidation in the days ahead, but we expect the SPX to ultimately follow the Dow Jones Industrial Average and Russell 2000 Index to new highs. Small-cap leadership has re-emerged as breadth has improved," said Katie Stockton, chief technical strategist at BTIG.
On Tuesday, the Dow closed at a record (http://www.marketwatch.com/story/dow-on-pace-for-7th-straight-up-session-2016-11-15), while the S&P 500 stands 0.7% off its mid-August record close.
Read more:Trump transition team's incoherence could torpedo market rally (http://www.marketwatch.com/story/trump-transition-teams-incoherence-could-torpedo-market-rally-2016-11-16)
And see:Trump on picking cabinet: Only he 'knows who the finalists are' (http://www.marketwatch.com/story/trump-on-picking-cabinet-only-he-knows-who-the-finalists-are-2016-11-16)
Individual movers: Retailers Target Corp.(TGT) and Lowe's Cos.(LOW) were among the companies posting earnings before the open.
Target jumped 6% after raising its 2016 profit guidance (http://www.marketwatch.com/story/target-shares-jump-after-earnings-beat-guidance-raised-2016-11-16), making it the biggest winner on the S&P 500. Lowe's shares dropped 2.6% after a guidance cut (http://www.marketwatch.com/story/lowes-cuts-guidance-as-traffic-slows-2016-11-16).
H&R Block Inc(HRB) shares took a hit, falling 7.4% after analysts at Morgan Stanley downgraded the stock to equal-weight from overweight and cut the price target to $25 fro $26.
LinkedIn Corp.'s stock (LNKD) gained 1.2% following a Reuters report (http://www.reuters.com/article/us-linkedin-m-a-microsoft-eu-idUSKBN13B0SO) that software giant Microsoft Corp.(MSFT) has offered concessions to European antitrust regulators over its $26 billion bid for the social network for professionals.
Nvidia Corp.(NVDA) shares jumped 6.3% after analysts raised their price targets on the chip maker's stock.
TJX Cos.(TJX) shares rose 4% after the off-price retailer topped Wall Street earnings estimates (http://www.marketwatch.com/story/tjx-shares-rise-after-earnings-beat-2016-11-15) for the quarter.
Apple Inc. (AAPL) shares rose 2.5% following reports that the consumer tech giant may be adding smart glasses to its line of products.
Shares of Walt Disney Co.(DIS) rose 1.2% toward a four-month high, after Deutsche Bank turned bullish on the media and theme park company, citing increased confidence in the cable and film businesses.
Other markets: Oil futures dipped 0.1% following a slight gain earlier after news reports that Russia's Energy Minister Alexander Novak said he sees big chances for the Organization of the Petroleum Exporting Countries to reach an agreement to curb production. Wednesday's moves come after Tuesday's jump of nearly 6% (http://www.marketwatch.com/story/oil-prices-snap-back-after-three-sessions-of-losses-2016-11-15).
Europe's main stock benchmark edged lower, while Asian markets closed mostly with gains (http://www.marketwatch.com/story/asian-stocks-peek-higher-led-by-financials-2016-11-15). Gold futures (http://www.marketwatch.com/story/gold-selloff-pauses-as-dollar-rally-slows-2016-11-16) settled down less than 0.1% at $1,223.90, while the ICE U.S. Dollar Index rose 0.2% to 100.45 (http://www.marketwatch.com/story/dollars-march-higher-takes-a-break-as-investors-wonder-if-its-gone-too-far-2016-11-16).
Economic news:Inflation at the U.S. wholesale level remains low (http://www.marketwatch.com/story/us-wholesale-inflation-flat-in-october-ppi-shows-2016-11-16), but it's no longer falling. The Producer Price Index was unchanged in October, confounding Wall Street's expectation for an increase.
Industrial production (http://www.marketwatch.com/story/industrial-production-was-flat-in-october-2016-11-16)was unchanged in October after a big drop in output as warmer-than-normal temperatures reduced the demand for heating.
An index of home builder sentiment was unchanged in November, matching the median forecast among economists surveyed by Econoday.
On the Federal Reserve front, St. Louis Fed President James Bullard said early Wednesday that he is still leaning toward backing an interest-rate rise in December (http://www.marketwatch.com/story/feds-bullard-still-favoring-december-rate-hike-after-election-2016-11-16).
(END) Dow Jones Newswires
November 16, 2016 14:26 ET (19:26 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.