US stocks have ended mostly lower as analysts pointed to the need for markets to absorb recent gains after a number of records in the past couple of weeks.
The Dow Jones Industrial Average on Tuesday fell 20.90 points (0.13 per cent) to 15,618.22.
The broad-based S&P 500 dipped 4.96 (0.28 per cent) to 1,762.97, while the tech-rich Nasdaq Composite Index edged up 3.27 (0.08 per cent) to 3,939.86.
Markets opened lower after the European Union cut its 2014 eurozone growth forecast. The indices rallied after that, but the rise was not enough to pull two of the three main indices into positive territory.
Art Hogan, head of product strategy for equity research at Lazard Capital Markets, said the selling could be expected because equities have risen a lot in recent weeks.
“We’ve got some wind at our back here, but we’ve also got a market that’s worked its way pretty high in a short period of time,” Hogan said.
Car rental company Hertz Global Holdings sank 10.5 per cent amid concerns over higher fleet costs, which Morgan Stanley said clouded the 2014 profit outlook.
Retail pharmaceutical giant CVS Caremark rose 2.0 per cent after earnings of $US1.09 per share bested forecasts by 7 cents. The company also increased its full-year earnings projections due to stronger sales from a range of $US3.90-$US3.96 per share to $US3.98-$US4.01.
Luxury fashion company Michael Kors shot up 5.8 per cent after earnings topped expectations by 3 US cents at 71 US cents per share on surging sales. North American comparable-store sales rose 21 per cent.
Canadian energy company Encana rose 2.8 per cent after announcing a new corporate strategy that emphasises oil development at the expense of natural gas, cuts 20 per cent of its staff, divests some assets and keeps a lower dividend.
Fertiliser company CF Industries fell 3.7 per cent after earnings slumped 42 per cent to $US234.1 million ($A246.72 million) because of tough industry conditions in the wake of lofty supply. However, the company pointed to a “good demand outlook and favourable pricing dynamics” for the 2014 nitrogen market.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.66 per cent from 2.60 per cent on Monday, while the 30-year increased to 3.76 per cent from 3.69 per cent. Bond prices and yields move inversely.
