U.S. Stocks Retreat From Highs After European Shares Close Mixed

(Bloomberg) -- U.S. stocks declined as raw-material shares slid with commodity prices and investors assessed the rally that has pushed equities to new highs.

The S&P 500 Index dropped 0.6 percent to 2,381.91 at 4 p.m. in New York as the Dow Jones Industrial Average lost 43 points, about 0.5 percent, to 21,002. The gauge passed 21,000 for the first time Wednesday.

• Financial shares down 1.5% for biggest loss since Jan. 17
• Industrial companies lose 1%
• Raw-material stocks down 1.1%; Bloomberg Commodity Index falls 1.5%
• VIX down 6% for a second day of declines, back below 12
• Traders are betting on an 88% chance the Federal Reserve will raise rates this month, versus 40 percent at the end of last week, after several central-bank officials signaled their willingness to increase borrowing costs
• “If the Fed had wanted to keep its options open, a move back to around 60 percent would have been sufficient,” Michael Hewson, a market analyst at CMC Markets in London, wrote in a note. “In raising expectations to such an extent in such a short space of time, to not act now would deal a serious blow to their credibility, and also prompt quite a sharp market reaction”
• The earnings season is drawing to a close, with about 73% of S&P 500 members that have already reported beating profit estimates and a little over half exceeding sales forecasts, according to data compiled by Bloomberg
• Monster Beverages Corp. jumped 16% after posting better-than-forecast quarterly sales, while Broadcom Ltd. climbed 2.9% after the chipmaker predicted revenue that beat analysts' estimates
• ECONOMY:
  • Initial jobless claims drop to lowest in almost 44 years
• EARNINGS:
  • After-market Thursday: Autodesk (ADSK), American Outdoor Brands (AOBC),
    Varex Imaging (VREX), Costco Wholesale (COST)
  • The Stoxx Europe 600 Index fell less than 0.1%

  For related equity market news:

  • What's Hotter Than the S&P 500? How About an S&P 500 ETF: Chart
  • All Eyes on Snap After 2017's First Tech IPO Prices Above Range
  • Tide Turns for European Drugmakers Flashing Bullish Sign: Chart
  • Favored Stock-Swings Note Sees Biggest Outflows in Year: Chart

  To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net.

  To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net, Scott Schnipper, Lester Pimentel

  Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.