Priceline, Disney, Fossil, Yelp among the biggest decliners
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U.S. stocks edged lower in early Wednesday trade, as the stunning firing of Federal Bureau of Investigation Director James Comey stoked fresh questions about President Donald Trump's to build enough consensus in Washington to implement market-friendly polices.
The Dow Jones Industrial Average fell 39 points, or 0.2%, to 20,936. The S&P 500 lost about a 1 point, or less than 0.1%, at 2,395. The Nasdaq Composite Index fell 4 points, or less than 0.1%, to 6,119.
On Tuesday, the Nasdaq ended at a record close while the S&P 500 finished about 0.1% from its own all-time closing high. The Dow is less than 1% below its record close, which was hit March 1. With valuations stretched by some metrics, equities could be vulnerable to prolonged uncertainty coming out of Washington, analysts said.
Trump said he dismissed the director of the Federal Bureau of Investigation (http://www.marketwatch.com/story/trump-fires-fbi-director-comey-democrats-call-for-special-prosecutor-in-russia-probe-2017-05-09) over his handling of the investigation into Hillary Clinton's emails. The reaction on Capitol Hill to Comey's firing has ranged from approval to outrage.
Read:Complete text of White House statement on firing of FBI's Comey (http://www.marketwatch.com/story/complete-text-of-white-house-statement-on-firing-of-fbi-director-james-comey-2017-05-09)
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And see:At first, Comey reportedly thought his firing was a prank (http://www.marketwatch.com/story/at-first-comey-reportedly-thought-his-firing-was-a-prank-2017-05-09)
"This certainly isn't a positive, something that makes you want to go out and buy stocks, but it is too early to tell how big of a market-moving event this will prove to be," said Bruce McCain, chief investment strategist at Key Private Bank. "To the extent it reflects a coverup or illegal action, that would be market moving, but we don't know if that's the case. Most of what I've seen thus far suggests the market is taking a wait-and-see attitude."
Gold futures were 0.6% higher (http://www.marketwatch.com/story/gold-finds-some-footing-as-fbis-comey-firing-pressures-stocks-2017-05-10), while the dollar was down slightly against the yen (http://www.marketwatch.com/story/dollar-drops-against-the-euro-sterling-after-trump-fires-fbi-director-comey-2017-05-10), changing hands at Yen113.87 compared with Yen113.87 late Tuesday. The buck had been as low as Yen113.63 earlier. Both gold and the yen are seen as safe-haven trades in times of uncertainty.
Other markets:Oil futures (http://www.marketwatch.com/story/oil-prices-get-respite-from-selling-after-encouraging-us-supply-data-2017-05-10) rose more than 1%, getting some respite from the sellers after an industry group reported a drop in U.S. crude supplies. Shares of Chevron Corp.(CVX) rose 0.6% as the biggest advancing stock on the Dow industrials.
"At these levels, you're probably at a good equilibrium for oil. I don't think it will be driven dramatically higher or lower in the near-term," McCain said.
European stocks (http://www.marketwatch.com/story/european-stocks-back-away-from-21-month-high-as-2017-05-10) were lower, while Asian markets largely gained (http://www.marketwatch.com/story/asian-markets-return-to-gains-after-korean-election-2017-05-09).
Economic news: Boston Federal Reserve President Eric Rosengren is slated to speak at noon Eastern Time to the Lake Champlain Chamber of Commerce in Vermont.
In the latest economic data, import prices rose 0.5% in April (http://www.marketwatch.com/story/import-prices-jump-while-export-prices-edge-up-in-april-2017-05-10), while export prices were up 0.2%. Both were higher than expected. Separately, a release on the federal budget is on tap for 2 p.m.
Stock movers:Abercrombie & Fitch Co. shares (ANF) jumped 11% in heavy trading following a Reuters report the retailer was fielding buyout interest.
Mylan NV(MYL) shares rose nearly 2% after the drugmaker posted first-quarter profit that exceeded expectations (http://www.marketwatch.com/story/mylan-stock-rises-3-after-first-quarter-profit-beat-revenue-miss-2017-05-10), but revenue missed.
Fashion-accessories maker (http://www.marketwatch.com/story/fossil-group-shares-plummet-after-results-outlook-miss-street-view-2017-05-09)Fossil Group Inc.(FOSL) and online reviews provider (http://www.marketwatch.com/story/yelp-shares-crater-25-in-after-hours-trade-after-revenue-miss-lowered-outlook-2017-05-09)Yelp Inc.(YELP) both plummeted following disappointing quarterly results. Shares of Fossil were down 19% while Yelp shed 21%.
Read the First Take: Yelp plummets as advertisers revolt (http://www.marketwatch.com/story/yelp-plummets-as-advertisers-revolt-2017-05-09)
Online travel broker Priceline Group Inc.(PCLN) lost 4% after delivering a weak second-quarter outlook (http://www.marketwatch.com/story/priceline-shares-slide-on-weak-earnings-outlook-2017-05-09) late Tuesday.
Entertainment titan Walt Disney Co.(DIS) was down 2.5% after posting earnings that topped forecasts, but revenue that missed views (http://www.marketwatch.com/story/disney-shares-down-2-as-quarterly-revenue-narrowly-misses-expectations-2017-05-09). The stock was by far the biggest decliner among Dow components.
On the upside, Nvidia Corp. (NVDA) jumped 13% after the maker of graphics chips topped profit forecasts (http://www.marketwatch.com/story/nvidia-jumps-more-than-10-after-handily-beating-on-earnings-2017-05-09-16913212) late Tuesday.
Electronic Arts Inc.(EA) was up 10% following better-than-expected earnings (http://www.marketwatch.com/story/electronic-arts-shares-surge-as-earnings-outlook-tops-street-view-2017-05-09).
Wendy's Co.(WEN) rallied 2% after the fast-food chain beat first-quarter profit and sales expectations (http://www.marketwatch.com/story/wendys-stock-jumps-after-profit-and-sales-beat-expectations-2017-05-10), and provided an upbeat outlook.
Inc. Research Holdings(INCR) reached a deal to combine with private-equity owned inVentiv Health (http://www.marketwatch.com/story/inc-research-to-merge-with-private-equity-owned-inventiv-health-in-all-stock-deal-2017-05-10), creating a large biopharmaceutical outsourcing provider. The agreement values inVentiv at $4.6 billion, including debt. Shares of Inc. gained 14%.
(END) Dow Jones Newswires
May 10, 2017 09:48 ET (13:48 GMT)