Market report

Stocks start day low, keep sliding

SendGrid CEO Sameer Dholakia, center, is cheered on by New York Stock Exchange President Tom Farley, right, as he rings a ceremonial bell as his company's IPO begins trading, Wednesday, Nov. 15, 2017.(AP Photo/Richard Drew)
SendGrid CEO Sameer Dholakia, center, is cheered on by New York Stock Exchange President Tom Farley, right, as he rings a ceremonial bell as his company's IPO begins trading, Wednesday, Nov. 15, 2017.(AP Photo/Richard Drew)

Technology companies led U.S. stocks lower Wednesday, giving the market its biggest loss since early September.

The Standard & Poor's 500 index fell 14.25 points, or 0.6 percent, to 2,564.62. The Dow Jones industrial average dropped 138.19 points, or 0.6 percent, to 23,271.28. The Nasdaq composite slid 31.66 points, or 0.5 percent, to 6,706.21. The Russell 2000 index of smaller-company stocks fell 7.16 points, or 0.5 percent, to 1,464.09.

The major indexes are all in the red for the month, but still near their most recent record highs.

Shares of grocery stores, and packaged foods and beverage companies also accounted for the decline. Energy stocks fell as the price of crude oil closed lower a day after its biggest loss since October. Banks and phone companies eked out modest gains.

The latest slide extended the market's losses from a day earlier and added to its pullback in November.

Unlike October's broad market rally, fewer stocks and sectors have been notching gains this month, and the latest market decline reflects that, noted Bruce Bittles, chief investment strategist at Baird.

"And that's exemplary of a market that's losing momentum, and that's the real story here," Bittles said. "It means the market is struggling here, and it could mean that a lot of the good news on the economy, earnings and even the potential for a tax-reform bill are to a great extent already built into current prices."

Stocks were headed lower from the get-go Wednesday as investors weighed a batch of new government data on inflation, retail sales and manufacturing.

The Commerce Department said retail sales rose 0.2 percent in October, while a closely watched report by the Federal Reserve Bank of New York showed manufacturing expanded at a slower pace this month in New York but remained at a healthy level. In addition, the Labor Department said consumer prices edged up 0.1 percent last month, the smallest gain in three months. That followed a report earlier this week showing that prices at the wholesale level spiked last month.

"The inflation data that was released this week are basically giving a green light to the Fed to raise rates," said Quincy Krosby, chief market strategist at Prudential Financial.

Investors were keeping an eye on Washington, where Senate Republicans began pushing their version of a major tax overhaul that would slash corporate taxes.

But the Senate measure was complicated by the last-minute inclusion of a repeal of the section of the Patient Protection and Affordable Care Act that requires Americans to get insurance coverage. The legislative push also appeared to hit a snag Wednesday, when Sen. Ron Johnson of Wisconsin said he opposes the Republican tax bill, saying it helps corporations more than other businesses.

Technology sector stocks, which have done far better than the rest of the market this year, took some of the biggest losses Wednesday. Chipmaker Nvidia lost $4.20, or 2 percent, to $209.98. Macom Solutions Technology Holdings slumped 18 percent after the chipmaker's latest quarterly results fell short of Wall Street's expectations. The stock gave up $6.59 to $30.02.

Companies that make consumer products also were big decliners. General Mills slid $1.59, or 2.9 percent, to $52.53.

Crude oil prices pared some of their early losses, but still finished lower.

Benchmark U.S. crude fell 37 cents, or 0.7 percent, to settle at $55.33 per barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, lost 34 cents, or 0.5 percent, to close at $61.87 a barrel in London.

Business on 11/16/2017

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