Dow industrials holds near record close
U.S. stocks were under pressure on Wednesday as investors continued to focus on a mix bag of earnings results.
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A recent string of record closes, low volatility and stretched valuations have been cited as the reason behind cautious trading.
What are the main benchmarks doing?
The S&P 500 was off by 4 points, or 0.1%, to 2,567, with eight of its 11 main sectors trading lower. Telecoms and utilities were leading the losses, down 1.8% and 1.3% respectively.
The Nasdaq Composite declined 5 points, or 0.1%, to 6,593.
Meanwhile the Dow Jones Industrial Average was flat, hovering not far off the record close seen Tuesday.
What are other assets doing?
The dollar (http://www.marketwatch.com/story/dollar-largely-gains-with-aussie-whacked-by-soft-inflation-figure-2017-10-25) was little changed after giving up an earlier gain that analysts had pinned on bets that the Federal Reserve's next boss either will pick up the pace with interest-rate hikes or stay the course. Meanwhile, the yield on the 10-year Treasury note rose to 2.45%, its highest level since March.
European stocks (http://www.marketwatch.com/story/gucci-parent-helps-lift-luxury-stocks-but-european-markets-stay-in-their-rut-2017-10-25) mostly rose, while Asian markets largely closed higher, though Japan's Nikkei benchmark halted a 16-session winning streak (http://www.marketwatch.com/story/nikkeis-16-session-winning-streak-is-in-peril-as-japan-stocks-pause-at-multiyear-heights-2017-10-24). Gold futures and oil futures (http://www.marketwatch.com/story/oil-prices-ease-as-investors-wait-to-see-if-crude-stockpiles-decline-2017-10-25) lost ground.
Read:How oil is escaping from 'purgatory' as supply glut turns to supply concern (http://www.marketwatch.com/story/how-oil-is-escaping-from-purgatory-as-supply-glut-turns-to-supply-concern-2017-10-25)
What could drive markets?
Durable-goods orders (http://www.marketwatch.com/story/business-investment-surges-again-in-september-durable-goods-report-shows-2017-10-25)rose 2.2% in September, beating the MarketWatch forecast of a 0.7% gain. Excluding transportation orders increased 0.7%.
New home sales are due at 10 a.m. Eastern. Economists polled by MarketWatch expect 555,000 homes sold.
Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)
No Fed officials are scheduled to speak, but investors are bracing for President Donald Trump's pick to lead the U.S. central bank. Trump on Tuesday asked Senate Republicans who should be the next Fed boss, and Stanford University economist John Taylor reportedly beat out Fed Gov. Jerome Powell (http://www.marketwatch.com/story/trump-asked-senate-republicans-who-should-be-next-fed-chair-and-john-taylor-reportedly-was-the-winner-2017-10-24). The president is expected to announce his choice before starting a trip to Asia (http://www.marketwatch.com/story/trump-today-president-says-hes-very-very-close-to-naming-pick-for-fed-chief-2017-10-23) on Nov. 3.
Read:Trump indicates Taylor and Powell could be named together to top Fed roles (http://www.marketwatch.com/story/trump-indicates-taylor-and-powell-could-be-named-together-to-top-fed-roles-2017-10-20)
And see:Who's the next Fed boss? Brace for a 'Trumpian surprise' (http://www.marketwatch.com/story/whos-the-next-fed-boss-brace-for-a-trumpian-surprise-2017-10-20)
What are analysts saying?
"While we continue to advise patience and some caution in the near term [due to low volatility and stretched valuation] the strength in U.S. stocks continues to support our view that we are nowhere near the end of this secular bull market," said Andrew Adams, market strategist at Raymond James, in a note.
Which stocks look like key movers?
Burrito chain Chipotle(CMG) and chip maker AMD(AMD) were the S&P 500's two biggest losers, with their stocks falling 14% and 11%, respectively.
Chipotle posted weaker-than-expected earnings (http://www.marketwatch.com/story/chipotle-stock-drops-after-hours-on-third-quarter-earnings-miss-2017-10-24) late Tuesday, while AMD's results beat expectations (http://www.marketwatch.com/story/amd-shares-decline-even-after-earnings-beat-2017-10-24), but investors seemed more concerned about the company's outlook (http://www.marketwatch.com/story/amd-stock-still-volatile-despite-fresh-stability-in-chip-makers-business-2017-10-24), which may not have been as strong as hoped.
On the upside, Akamai Technologies Inc.(AKAM) rose 8.6% after the provider of tech services posted better-than-anticipated results late Tuesday.
Shares in Visa Inc.(V) rose 1.5% following its stronger-than-expected results (http://www.marketwatch.com/story/visas-stock-jumps-after-profit-and-sales-rise-above-expectations-2017-10-25), while drugstore operator Walgreens Boots Alliance Inc. (WBA) and aerospace giant Northrop Grumman Corp.(NOC) both gained about 4% after their earnings beat forecasts.
(END) Dow Jones Newswires
October 25, 2017 09:56 ET (13:56 GMT)