US STOCKS-Wall St flat after selloff, indexes to fall on week

Fri Aug 16, 2013 10:42am EDT

Related Topics

* Green Mountain Coffee Roasters to join Nasdaq 100

* Nordstrom among retail firms with weak revenue, shares dip

* Consumer sentiment data falls short of forecast

* Dow off 0.1 pct, S&P off 0.1 pct, Nasdaq up 0.1 pct

By Rodrigo Campos

NEW YORK, Aug 16 (Reuters) - U.S. stocks were little changed Friday following the largest one-day drop in almost two months a day earlier, with main indexes on track to post their largest weekly decline in months on worries over the health of consumer spending and corporate profits.

Nordstrom Inc on Thursday joined the list of consumer companies reporting lower-than-expected revenue, and the luxury department store chain cut its full-year sales and profit forecasts. Its shares fell 2.7 percent to $57.72.

From Wal-Mart and Gap to Macy's and McDonald's, chains that cater to middle- and lower-income Americans are feeling the pinch of an uneven economic recovery.

Investors are concerned the economic recovery is slower than they had hoped as corporate revenue growth has disappointed even as companies' bottom-lines have hit the mark.

"There's a few bargain hunters out this morning," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey, but "we haven't seen the revenue growth the market was anticipating."

"We are unlikely to see a large-scale correction in the market right now, but it certainly is losing the momentum that took it to strong highs earlier this year," he said.

Adding to concerns, a survey showed U.S. consumers were a bit less optimistic in August as sentiment retreated from last month's six-year high.

The Dow Jones industrial average fell 9.72 points, or 0.06 percent, to 15,102.47. The S&P 500 dipped 2.17 points, or 0.13 percent, to 1,659.15. The Nasdaq Composite Index edged up 4.61 points, or 0.13 percent, to 3,610.73.

The S&P and Nasdaq were on track to post their largest weekly declines since late June, and the Dow's drop was the largest for a week since late in April.

U.S. Treasuries prices extended a rout that has sent longer-dated yields to their highest in two years as investors contemplate that more solid economic growth will lead the Federal Reserve to begin paring back its $85 billion a month in bond purchases.

The stimulus program has helped lift the equity market to record highs this year, and LibertyView's Meckler said the sharp adjustment in interest rates has made equity investors more cautious.

Data on Friday showed U.S. housing starts and permits for future home construction rose less than expected in July, suggesting that higher mortgage rates could be slowing the housing market's momentum.

U.S. nonfarm productivity rose in the second quarter after a surprise decline in the first, separate data showed.

Green Mountain Coffee Roasters shares rose 2.3 percent to $75.60 after Nasdaq OMX said the company will replace Life Technologies in the Nasdaq 100 index on Aug. 22.

Pandora Media shares jumped 7 percent to $21.25 following a bullish call on the stock from Goldman Sachs.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.