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Stocks waver after Dow's 6-day climb

Stocks waver after Dow's 6-day climb

Reports showing jumps in U.S. home sales and factory orders weren't enough to keep stocks afloat Wednesday.
Stocks edged lower at midday, pulling off of their highest levels of the year. Earlier in the session, stocks crept higher after the Commerce Department said new home sales rose 9.6 percent in July for the fourth straight monthly increase. Sales rose to 433,000, the strongest pace since September and well above the 390,000 figure economists expected.
The Commerce Department also said orders for goods expected to last at least three years rose 4.9 percent in July _ the biggest jump in two years and more than the 3 percent increase economists had expected.
The day's news followed upbeat readings on consumer sentiment and home prices on Tuesday that sent stocks to fresh highs for the year. With the Dow Jones industrials up more than 400 points in six days, analysts say some pause is to be expected.
But there is also plenty of caution in the market that has restrained investors over the past week from the fervid buying that marked trading earlier this summer. After a five-month run-up in stocks, with little break, investors are questioning whether the market can go much higher without evidence of actual economic growth.
Matt King, chief investment officer at Bell Investment Advisors, said much of the improving economic data has already been factored into the market and that stocks have been buoyed more by recent momentum than anything else.
In midday trading, the Dow fell 10.51, or 0.1 percent, to 9,528.78. The Standard & Poor's 500 index fell 2.44, or 0.2 percent, to 1,025.56, and the Nasdaq composite index fell 8.93, or 0.4 percent, to 2,015.30.


Updated : 2020-12-03 12:36 GMT+08:00