* Hilton Worldwide shares open 6.5 pct above IPO price
* Aramark shares open 1.25 pct above IPO price
* Lululemon warns on Q4 sales, cuts outlook; shares plunge
* Indexes: Dow off 0.5 pct; S&P down 0.2 pct; Nasdaq flat
By Angela Moon
NEW YORK, Dec 12 U.S. stocks fell for a third
day on Thursday amid uncertainty over how soon the Federal
Reserve will trim its market-friendly stimulus program.
Concerns about an earlier-than-expected tapering of the
Fed's stimulus have weighed on the market for days, pressuring
major U.S. stock indexes to their biggest drop in a month on
Wednesday as traders took profit after a provisional budget deal
was agreed in Washington.
The central bank's massive bond-buying program has helped
prop up the equity market for much of the year.
"We may be in a little bit of a correction here. Although we
know the Fed is going to taper eventually, the unknown factor is
by how much or the impact on interest rates, etc. There is
short-term fear that all this will come out at the (Federal Open
Market Committee) meeting next week," said Tim Ghriskey, chief
investment officer at Solaris Asset Management in Bedford Hills
in New York.
The Fed's policymakers are due to meet Dec 17-18.
Much of the day's focus in early trading was on major
initial public offerings, including Hilton Worldwide Holdings
Inc. The stock opened at $21.30 on the New York Stock
Exchange, 7 percent above its IPO price. The market debut
heralded the hotel operator's return to the public markets some
six years after Blackstone Group LP took it private in
one of the largest deals of the leveraged-buyout boom.
Shares of food services provider Aramark Holdings Corp
rose 3 percent in their market debut, valuing the
company at about $4.75 billion. The Philadelphia-based company
was returning to the market for the third time, after being
taken private first in 1984 and then in 2006.
The Dow Jones industrial average fell 72.57 points,
or 0.46 percent, to 15,770.96, the S&P 500 lost 4.03
points, or 0.23 percent, to 1,778.19 and the Nasdaq Composite
dropped 1.915 points, or 0.05 percent, to 4,001.898.
Shares of Facebook were also in the spotlight after
the social media giant joined the S&P 500. The stock was up 3.3
percent at $51.00.
Lululemon Athletica Inc shares fell more than 10
percent to $61.00 after the company said it expects flat
same-store sales in the crucial fourth quarter.
Samsung Electronics Co Ltd lost its bid to ban sales of
Apple Inc's older iPhone and iPad in South Korea after
a court dismissed a lawsuit claiming the U.S. firm had infringed
on three of Samsung's mobile patents. Shares of Apple were up
0.34 percent at $563.25.
In economic data, retail sales for November added to signs
of a strengthening economy that could draw the U.S. Federal
Reserve closer to reducing the pace of its monetary stimulus.
But a labor market report showed the number of Americans filing
new claims for unemployment benefits jumped last week, reversing
the prior three weeks of declines.