December 16, 2016 / 1:19 PM / 8 months ago

Tech drags Wall Street lower; China tension weighs

NEW YORK (Reuters) - U.S. stocks fell on Friday, weighed by a more than 4 percent drop in Oracle shares, while recently battered stocks in the real estate and utilities sectors posted the largest gains.

Oracle dropped 4.3 percent to $39.10 after its adjusted revenue missed analysts' estimates. The stock was the biggest drag on the S&P and the tech sector.

Analysts said that investors were anxious and turned to defensive sectors in stocks as well as U.S. Treasuries after a report that a Chinese Navy warship seized a U.S. underwater drone on Thursday in international waters in the South China Sea.

The news about the drone seizure "turned it to a risk-off day," said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.

"At a minimum the headline hits you. It's not often you have two world powers getting this frontal."

The Dow Jones industrial average fell 8.83 points, or 0.04 percent, to 19,843.41, the S&P 500 lost 3.96 points, or 0.18 percent, to 2,258.07 and the Nasdaq Composite dropped 19.69 points, or 0.36 percent, to 5,437.16.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 15, 2016.Brendan McDermid

The Dow rose for its sixth consecutive week but the S&P 500 and Nasdaq posted slight weekly declines.

Utilities and real estate were the best-performing sectors on the S&P, in a rotation out of recent winning sectors.

U.S. stocks have been on a tear since the Nov. 8 presidential election, with the S&P rising 5.5 percent on bets that President-elect Donald Trump's expected deregulation and infrastructure spending will boost the economy.

However, there are some concerns that the rally may have little support as policy will take time to be implemented and likely will change as it makes its way through Congress.

Advancing issues outnumbered declining ones on the NYSE by a 1.27-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored decliners.

The S&P 500 posted 22 new 52-week highs and one new low; the Nasdaq Composite recorded 172 new highs and 41 new lows.

About 10.84 billion shares changed hands in U.S. exchanges, well up from the 7.53 billion daily average over the last 20 sessions.

Reporting by Rodrigo Campos; Editing by James Dalgleish

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below