US stocks decline for a third day over Fed concern

December 4, 2013 7:49 am

US stocks declined for a third day, as investors focused on upcoming economic data this week that may offer clues on when the Federal Reserve will reduce stimulus.

The Standard & Poor’s 500 Index lost 0.3% to 1,795.15 at 4 p.m. in New York. The Dow Jones Industrial Average has fallen for three consecutive days, its first such streak of losses since September. The blue-chip index fell 94.15 points, or 0.6%, to 15914.62, notching its biggest point and percentage decline since November 7. About 6.3 billion shares changed hands on U.S. exchanges, 3.8%above the three-month average.

The S&P 500 snapped eight straight weeks of gains, the longest such stretch in almost a decade. The S&P 500 is up 26% in 2013.

“It’s been a great year, and if someone wants to cash out, 25% to 30% gains is nothing to be embarrassed about,” said to Wall Street Journal, John Manley, chief equity strategist at Wells Fargo’s funds unit, which manages about $200 billion in assets.

The Commerce Department will release data today on new home sales and the central bank will publish its Beige Book, which provides policy makers clues of business activity from the Fed districts. Reports on third-quarter gross domestic product and November non-farm payrolls are also due this week.

ISM non-manufacturing index and US trade balance data are also due later today.

In corporate news, Amazon slid 2% to $384.66 and Ross Stores Inc. lost 1.9% to $73.25 for a fourth day of declines.

Abercrombie & Fitch Co. rose 5.8% to $35.99 for the biggest gain in the S&P 500. Engaged Capital LLC, which owned 400,000 shares as of August 30, recommended the clothing retailer consider selling itself or begin searching for a new chief executive officer to replace CEO Michael Jeffries, whose contract expires February 1.

Krispy Kreme slumped 20%, the most since April 2011, to $19.59. The company reported third-quarter revenue of $114.2 million after yesterday’s market close, missing the average analyst estimate of $115 million.

Apple rose 2.7% to $566.32, the highest since December 4, 2012. The iPhone maker paid more than $200 million for Topsy, people with knowledge of the deal said, giving the world’s most valuable company new tools to spot trends as they emerge on Twitter Inc.’s social network.

Tesla Motors Inc. gained 17%, the most since May, to $144.70. The carmaker’s Model S, the electric car being investigated for a possible U.S. recall, was cleared of any safety defect in a review by Germany’s transportation regulator.

OncoMed Pharmaceuticals Inc. jumped 98% to a record $27.70. The drug developer that first sold shares to the public in July signed a $177.25 million agreement with Celgene Corp. on as many as six potential cancer medicines.

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