The stock market lacked direction on Wednesday, as a slump in McDonald’s stock helped pull the Dow Jones industrial average below 14,000. Other major market indexes were marginally higher.
McDonald’s was among the biggest decliners in the Dow, losing $1.10, to $94, as investors worried that Americans were spending less on eating out after a rise in Social Security taxes at the beginning of the year. The government reported early Wednesday that spending by Americans barely grew last month.
Other fast-food companies also fell. Buffalo Wild Wings stock plunged $4.52, to $76.55, after its earnings fell short of analysts’ expectations. Burger King and Wendy’s also fell.
“Consumer spending is coming under pressure,” said Bryan Elliott, an analyst at Raymond James. “It’s the easiest way to save money; stay at home and cook.”
The Dow Jones industrial average fell 35.79 points, or 0.26 percent, to 13,982.91. The Dow is still up 6.71 percent so far this year and is just 182 points below the record close of 14,164 set on Oct. 9, 2007.
The Standard & Poor’s 500-stock index edged up 0.90 point, or 0.06 percent, to 1,520.33. The index climbed as high as 1,524.69 during the day, the highest since November 2007. It is up 6.6 percent so far this year.
The Nasdaq composite index rose 10.38 points, or 0.33 percent, to 3,196.88.
Investors sent General Electric and Comcast higher after G.E. agreed Tuesday to sell its stake in NBCUniversal to Comcast for $16.7 billion. G.E. said it would use up to $10 billion of the money to buy back its own stock. Shares of G.E. rose 81 cents, to $23.39. Comcast advanced $1.16, to $40.13.
Trading has been relatively quiet in recent days following a strong opening to the year.
“We’re cautiously optimistic on stocks,” said Colleen Supran, principal at Bingham, Osborn & Scarborough. “There is some indication that we could be continuing on this slow growth trajectory.”
Ms. Supran said investors should still be prepared for volatility in the stock market and not assume that the gains from January and so far in February will set the pattern for the rest of the year.
Strengthening the economy and creating jobs were major topics in President Obama’s State of the Union address Tuesday. Although the economy is healthier than it was four years ago, growth remains slow and unemployment high.
The government reported that spending at retail businesses and restaurants slowed last month after higher taxes cut paychecks. Retail sales growth slowed to 0.1 percent in January, from a 0.5 percent increase in December.
Among the stocks on the move, Groupon rose 28 cents, to $5.57, after the brokerage firm Sterne, Agee & Leach, raised its rating on the company to buy from neutral, citing the long-term potential for Groupon’s changing business model. The online deals company has lost almost three-quarters of its value since going public in November 2011 at $20 as revenue growth slowed.
Dean Foods, a milk producer, fell $1.69, or 9.19 percent, to $16.70, after its profit forecast fell short of Wall Street expectations.
As stocks have advanced this year, bond prices have slumped and interest rates have risen. On Wednesday, the price of the 10-year Treasury note fell 13/32, to 96 15/32, while its yield rose to 2.03 percent, from 1.98 percent late Tuesday.
Stock Indexes End Mixed
This article
Stock Indexes End Mixed
can be opened in url
http://spraynewstar.blogspot.com/2013/02/stock-indexes-end-mixed.html
Stock Indexes End Mixed
