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US: Dow retreats from record as Home Depot shares slump
[NEW YORK] The Dow's two-day streak of records ended on Tuesday following a big drop in Home Depot shares over a disappointing sales forecast.
Home Depot plunged more than five percent as it slashed its full-year sales forecast, saying the payoff from investments in e-commerce and other ventures was taking longer than expected.
Despite that disappointment, analysts took heart in other aspects of the Home Depot report, including a 3.6 per cent increase in comparable sales.
They also cited better-than-expected US home construction data.
Art Hogan of National Holdings said it was "one of those days where's a balance between good and bad."
The Dow Jones Industrial Average fell 0.4 per cent to end at 27,933.98, while the S&P 500 retreated from a record, shedding 0.1 per cent to close at 3,120.18.
But the tech-rich Nasdaq Composite Index gained 0.2 per cent to 8,570.66, notching a third straight record.
US indices had finished at records Monday as optimism over the upcoming holiday shopping season offset doubts about the state of US-China trade talks.
But results Tuesday from retailers were mixed. Besides Home Depot, Kohl's slumped 19.5 per cent, while discount chain TJX gained 2.7 per cent.
More retailers are set to report in the coming days, including Target, Lowe's, Nordstrom and Gap.
Boeing shed 0.6 per cent after the National Transportation Safety Board issued new safety recommendations on the Boeing 737 NG following the emergency landing of a Southwest plane in April 2018.
Boeing said it was working on enhancements, but that all the 737 NG planes are safe to fly. Earlier, the company said it won an order from an unnamed airline for 20 of the 737 Max planes for US$2.3 billion.
AT&& dropped 4.1 per cent following a downgrade from MoffettNathanson.