Dow -0.06%  17,540.47  /  -10.22 
Nasdaq +0.67%  5,139.95  /  +34.40 
S& P +0.31%  2,099.84  /  +6.52

 

The S& P 500 and Nasdaq Composite rose on Wednesday following three days of losses as tech shares advanced, while the blue-chip Dow index ticked lower, weighed by Disney' s largest daily drop in almost seven years.

Gains in major tech companies Google and Facebook led the advance on the Nasdaq. Apple added 0.7 percent to $115.40, up for just the second session in the last 12. The S& P 500 tech sector gained 1 percent, its best daily performance in three weeks.

" There' s been a sector rotation into technology because of the improvement in their earnings expectations," said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.

Earnings in the technology sector of the S& P 500 are expected to have grown 5.3 percent in the second quarter, up from a 2.1 percent increase expected back on July 1, according to the most recent Thomson Reuters I/B/E/S data.

The market' s advance is, however, " a modest bounce back after discernable pressure over the last trading sessions," Morganlander said. He cited deceleration in the Chinese economy as a continuing headwind for stocks, specifically commodities-related sectors.

Disney' s shares fell to $110.53, a 9.2 percent drop and the largest for any day since Dec. 1, 2008, after it cut its profit forecast for its cable networks unit, spooking the entire industry.

Shares of Comcast fell 4.7 percent, Discovery Communications lost 12.1 percent and Twenty-First Century Fox fell 7 percent. Disney' s shares are still up 17.3 percent year to date, compared with a gain of 2 percent on the S& P 500.

" Disney has had such a tremendous move in the past months that a setback within the stock price should not be a surprise," said Morganlander.

The Dow Jones industrial average fell 10.22 points, or 0.06 percent, to 17,540.47 the S& P 500 gained 6.52 points, or 0.31 percent, to 2,099.84 and the Nasdaq Composite added 34.40 points, or 0.67 percent, to 5,139.95.

Despite the gains on the S& P 500, declining issues slightly outnumbered advancing ones on the New York Stock Exchange by 1,542 to 1,518. On the Nasdaq, however, 1,606 issues rose and 1,203 fell.

U.S. private job growth slowed in July, but a surge in services industry activity to a near-decade high suggested solid economic momentum that strengthens the case for a Federal Reserve interest rate hike this year. Friday' s payrolls report is key for traders who are trying to anticipate the Fed' s next move.

First Solar shares jumped 16.7 percent to $51.92 a day after it reported sharply higher quarterly sales and earnings and said results for the year would top Wall Street estimates.

Shares of Chesapeake Energy tumbled 12.1 percent to $7.03 on worries about hefty debt and spending at the No. 2 U.S. natural gas producer.

The benchmark S& P 500 index posted 54 new 52-week highs and 31 new lows the Nasdaq Composite recorded 135 new highs and 107 new lows.

About 7.2 billion shares changed hands on all U.S. exchanges, compared with an average 6.78 billion in the past five sessions, according to BATS Global Markets data.

 

 

Dow -0.27%  17,550.69  /  -47.51 
Nasdaq -0.19%  5,105.55  /  -9.83 
S& P -0.22%  2,093.32  /  -4.72

 

Wall Street ended lower on Tuesday for a third straight session as investors worried about a rise in interest rates while Apple' s shares hit their lowest in over six months.

The iPhone maker' s shares fell 3.21 percent to $114.64, firmly below their 200-day daily moving average, a key technical level closely watched by traders. The stock was the biggest drag on the three major U.S. indexes.

A slowdown in China and skepticism over demand for iPhones were contributing to pressure on Apple' s shares, traders said.

" Apple has been the weak sister in the market today," said Alan Gayle, senior investment strategist and director of asset allocation at RidgeWorth Investments in Atlanta, Georgia. " But if you look at the sectors, most everything is down with the exception of materials."

Stocks extended losses after Atlanta Federal Reserve President Dennis Lockhart told the Wall Street Journal that September may be the right time for Fed to lift interest rates.

The Dow Jones industrial average .DJI fell 0.27 percent to end at 17,550.69 and the S& P 500 .SPX lost 0.22 percent to 2,093.32. The Nasdaq Composite .IXIC dropped 0.19 percent finish at 5,105.55.

Eight of the 10 major S& P sectors fell, with the utilities index' s .SPLRCU 1.64 percent decline leading the losers.

The Fed has said it needs to see a sustained economic recovery before it raises interest rates for the first time in nearly a decade.

Soft economic data had prompted some investors to argue that the Fed might hold off on raising rates until December. After the Fed meeting last week, investors expected a rate increase in September.

" The market is getting such a mixed bag of rhetoric from the Fed, it seems like the Fed isn' t sure what it' s going to do," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

After the bell, shares of crafts website Etsy (ETSY.O) fell 9 percent and Walt Disney (DIS.N) lost 1.4 percent after the companies posted quarterly results that disappointed Wall Street. First Solar (FSLR.O) posted better-than-expected quarterly results and guidance and its stock was up 10 percent.

During the session, American International Group (AIG.N) fell 2.82 percent after the insurer' s underwriting income fell in almost all of its units, while home and auto insurer Allstate (ALL.N) fell 10.15 percent after its profit missed expectations.

Declining issues outnumbered advancing ones on the NYSE by 1.23 to 1. On the Nasdaq, 1,414 issues fell and 1,376 advanced for a 1.03-to-1 ratio favoring decliners.

The benchmark S& P 500 index was posting 32 new 52-week highs and 26 new lows the Nasdaq Composite was recording 91 new highs and 127 new lows.

Some 6.4 billion shares changed hands on U.S. exchanges, below the five-day average of 7.0 billion this month, according to BATS Global Markets.