Traders Michael Urkonis, left, John Santiago, center, and Thomas Ferrigno work on the floor of the New York Stock Exchange, Thursday, Dec. 9, 2021. Stocks edged lower in morning trading on Wall Street Thursday as investors tapped the brakes after three days of gains. (AP Photo/Richard Drew)
By Damian J. Troise and Alex Veiga
A sell-off on Wall Street left stocks broadly lower Thursday, giving back some of the market's gains from a three-day winning streak.
The S&P 500 fell 0.7%, with more than three-fourths of the companies in the benchmark index closing lower. The tech-heavy Nasdaq composite fell 1.7%, while the Dow Jones Industrial Average slipped less than 1 point.
Small-company stocks fell more than the rest of the market, sending the Russell 2000 index 2.3% lower. Roughly three stocks fell for every one that rose on the New York Stock Exchange.
The pullback follows a 3.6% gain for the S&P 500 index over the first three days of the week, largely in response to easing worries about the omicron variant of the COVID-19 virus. That marked an about-face for stocks following two weeks of losses over concerns about rising inflation and the coronavirus potentially crimping economic growth.
Investors welcomed reports this week of early indications suggesting the omicron variant may be less dangerous than delta, including word from Pfizer that its lab tests suggest the drugmaker's COVID-19 boosters provide protection against the new strain.
“Today, because of that, folks are taking a little bit of a breather to gauge other information that could suggest a more sustained direction for the market, particularly on the economic data front,” said Greg Bassuk, CEO of AXS Investments.
The S&P 500 fell 33.76 points to 4,667.45. The Dow slipped less than 1 point to 35,754.69. The Nasdaq fell 269.62 points to 15,517.37. The Russell 2000 gave up 51.50 points to 2,220.71. Every major index is still on track for a weekly gain.
Technology stocks and a mix of retailers and other companies that rely on direct consumer spending weighed on the S&P 500 the most. Chipmaker Nvidia fell 3.4%, while Tesla slid 6.1% for the biggest drop in the index.
Travel-related companies slipped after spending the last few days gaining ground. Carnival fell 1.7% and United Airlines fell 1.8%.
Bond yields fell slightly. The yield on the 10-year Treasury fell to 1.49% from 1.51% late Wednesday.
Energy futures closed mostly lower. The price of U.S. crude oil fell 2% and helped pull energy stocks lower. Devon Energy fell 4%.
Health care companies rose. CVS Health climbed 4.5% after raising its dividend and issuing a solid forecast. Pfizer, which has been touting the potential benefits of a vaccine booster against the latest COVID-19 variant, rose 1.3%.
The employment market's recovery has been a key focus for Wall Street while it gauges the strength of the economy as it moves past the virus pandemic. Rising inflation has been another focus, and investors will get an update Friday when the Labor Department releases its Consumer Price Index for November.
The latest inflation data comes ahead of the Federal Reserve's two-day meeting of policymakers next week. Rising inflation has prompted the central bank to speed up the pace at which it trims its bond purchases, which have helped keep interest rates low. That has raised concerns that the Fed will raise its benchmark interest rates next year sooner than expected.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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