S&P 500, Nasdaq Composite fall after rallying on Monday
-- Financial and consumer-discretionary sectors lead declines
The S&P 500 drifted lower Tuesday, snapping the index's five-session win streak.
Shares of Priceline Group and TripAdvisor posted double-digit losses, making them the S&P 500's biggest percentage decliners after the online travel companies disappointed investors with their quarterly results. Meanwhile, falling bond yields pressured bank stocks, and proposed deals swung shares of chip makers and media companies.
"Put together a lot of speculative M&A transactions and earnings and you get a good cocktail to move markets," said Michael Scanlon, a portfolio manager at Manulife Asset Management.
The S&P 500 slipped 0.49 points, or less than 0.1%, to 2590.64. The index has now gone 45 consecutive trading days without a decline of 0.5% or greater, the longest such streak since 1968.
The Nasdaq Composite fell 18.65 points, or 0.3%, to 6767.78 Tuesday, while the Dow Jones Industrial Average eked out a slight gain to close at a fresh record. The blue-chip index rose 8.81 points, or less than 0.1%, to 23557.23, its sixth straight session of gains.
TripAdvisor shed $9.18, or 23%, to $30.35 after the online travel booking company missed revised sales estimates as it struggled with users' shift toward mobile. Priceline -- which lost 257.28, or 14%, to 1,645.72 -- lowered its profit outlook for the remainder of the year, overshadowing better-than-expected sales and earnings.
Banks in the S&P 500 slumped, dragging down the financials sector of the broad index by 1.3%.
U.S. government bonds continued to strengthen, sending the yield on the 10-year Treasury note down to 2.309% from 2.318% Monday. Yields fall as bond prices rise.
Declining bond yields don't bode well for banks, which earn money on the difference between what they pay on deposits and what they charge to lend money.
Broadcom shares fell 6.20, or 2.2%, to 271.32 as investors continued to assess the chip maker's bid for Qualcomm. Shares of Qualcomm gained 1.58, or 2.5%, to 64.10.
21st Century Fox added 30 cents, or 1.1%, to 27.75 after reports that Walt Disney had held talks to purchase a large chunk of the company's entertainment business, though those talks have since cooled. Shares of Disney added 97 cents, or 1%, to 101.61. In 2013, News Corp, owner of The Wall Street Journal and other publishing businesses, and 21st Century Fox, home to the major entertainment assets, were split into their own businesses.
Robust corporate earnings have helped push stocks to fresh highs in recent weeks. More than 80% of the companies in the S&P 500 have reported for the third quarter so far, according to FactSet. Many have reported upbeat results, especially among the energy sector, which is rebounding from a slump in commodities prices in 2016.
However, sectors such as financials have posted earnings declines from the year before, with insurance companies the biggest drag due to severe summer storms, says FactSet's data.
"What is slightly concerning to me is that much of earnings upside has come from energy and materials, and I don't know that environment will be sustained," said Marc Zabicki, president and chief investment officer at Bower Hill Capital Management.
The Stoxx Europe 600 shed 0.5%, while Japan's Nikkei Stock Average rose 1.7% to levels last seen in early 1992.
Write to Michael Wursthorn at Michael.Wursthorn@wsj.com and David Hodari at David.Hodari@dowjones.com
(END) Dow Jones Newswires
November 07, 2017 17:14 ET (22:14 GMT)