(By Salman - iStockAnalyst Writer)US stocks retreated on Tuesday as mixed economic data and electronic retailer Best Buy’s disappointing quarterly results poured cold water on investor optimism.
The Dow Jones Industrial Average fell 107.46 points or 1.25% to finish at 8,504.67. The S&P 500 dropped 11.75 points or 1.27% to end at 911.97. The Nasdaq Composite slipped 42.42 points or 2.28% to 1,816.38.
US Federal Reserve said on Tuesday that industrial production dropped 1.1% in May. Economists expected a decline of 0.9%. The capacity utilization rate slipped to 68.3 percent, the lowest since records began in 1967.
A release by the Department of Commerce on Tuesday showed housing starts jumped 17.2% in May to seasonally adjusted annual rate of 532,000. Building Permits rose 4% to annual rate of 518,000.Economists had projected Housing Starts to increase to an annual rate of 485,000 and building permits to decline to 508,000 in May.
According to U.S. Department of Labor, U.S. producer prices rose 0.2% in May while core producer prices declined 0.1% in the month. Economists expected a rise of 0.6% in PPI, and a 0.1% increase in the core PPI.
Bank of America (NYSE:
BAC) slumped 60 cents or 4.50% to $12.73. JP Morgan (NYSE:
JPM) lost 50 cents or 1.47% to $33.50. American Express Co. (NYSE:
AXP) slipped 54 cents or 2.14% to $24.69.
Shares of Alcoa Inc. (NYSE:
AA), the largest aluminum maker, plunged 31 cents or 2.77% to $10.90.
Energy stocks finished lower. Chevron Corp. (NYSE:
CVX) dropped $1.20 or 1.69% to $69.88. Shares of Exxon Mobil (NYSE:
XOM) subtracted $1.18 or 1.33% to end at $72.80.
General Electric Co. (NYSE:
GE) declined 37 cents or 2.81% to $12.78.
Shares of the largest theme park operator Walt Disney (NYSE:
DIS) tumbled 76 cents or 3.13% to $23.49.
Early on Tuesday, electronic retailer Best Buy Co. (NYSE: BBY) announced that its first-quarter profit fell to $153 million, or 36 cents a share, from $179 million, or 43 cents, in the comparable period last year. Revenue rose 12% to $10.1 billion. On an adjusted basis, the company earned 42 cents a share, exceeding the average analyst estimate of 34 cents a share. Best Buy also reaffirmed its full-year earnings guidance of $2.50 to $2.90 a share. Shares of Best Buy plummeted $2.82 or 7.29% to $25.84.
FactSet Research Systems Inc. (NYSE:
FDS) said that third-quarter net income climbed to $39 million, or 79 cents a share, from $33 million, or 65 cents a share, in the prior year quarter. Revenue rose 5% to $154 million. Shares of the company fell 92 cents or 1.81% to $50.
Shares of Smithfield Foods Inc. (NYSE:
SFD) declined 54 cents or 4.83% to $10.64 after it reported that it swung to fourth quarter loss of $78.8 million, or 55 cent a share, compared to net income of $2.4 million, or 2 cents a share in the year-earlier period. Revenue slipped slightly to $2.85 billion from $2.87 billion.
Late on Monday Casey's General Stores Inc (NASDAQ: CASY) reported that fourth quarter rose to $15.5 million, or 31 cents a share, from $14.4 million, or 28 cents a share, in the year-ago quarter. On an adjusted basis, the company earned 43 cents a share, beating average analyst estimates of 36 cents. Revenue decreased 27% to $883 million. Shares of retailer rose 61 cents or 2.42% to $25.86.
European stocks settled little changed. The UK FTSE rose 2.56 points or 0.06% to 4,328.57. The German DAX increased 0.02% while French CAC retreated 0.17%.
Asian stocks finished with losses. The Nikkei 225 dropped 286.79 points or 2.86% to 9,752.88. The Hang Seng index of Hong Kong fell 333.46 points or 1.80% to 18,165.50.
NYMEX crude oil for July delivery declined 15 cents to settle at $70.47 a barrel. Disclosure: Author does not own any of the stocks discussed here.
