Stocks fade after record-setting rally

U.S. stocks fell Thursday morning, pulling back after Wednesday’s record-setting session that saw the Dow close above 26,000 for the first time.

While the Dow first breached 26,000 on Tuesday, it was unable to hold on to its gains and ended up closing in the red.

On Wednesday, bank earnings were one of the factors behind U.S. stocks’ climb to new records. Of note, the Dow industrials and S&P 500 had their best trading day since late November, and they had their best 11-session start to a year since 1987, according to the Dow Jones.

The Dow, the S&P 500 and the Nasdaq all closed at records on Wednesday. Investors will digest the continued stream of corporate earnings and the latest economic data which included jobless claims and housing starts which were released pre-bell on Thursday.

U.S. jobless claims fell to a 45-year low last week while U.S. housing starts dropped sharply in December.