U.S. stocks decline, kicking down the Standard & Poor 500 Index lower for the sixth time in eight days, after economists made a forecast that the Federal Reserve will trim down stimulus in September as European data added to indications that the global economy is empowering.
Macy’s Inc. relinquished 4.5 percent as the department-store chain trim its profit estimate after weaker-than-calculated sales. Homebuilders and utility stocks dived down amid surging bond yields. Apple Inc. zoomed 1.8 percent higher, extending a rally after billionaire investor Carl Icahn announced yesterday he’s a shareholder. Cisco Systems Inc. plunged 9.4 percent after the close of regular exchange as it plans to lay off 4,000 jobs.
Fed Stimulus
The Fed, led by Chairman Ben S. Bernanke, will probably reduce its $85 billion in monthly bond purchases at its meeting on Sept. 17-18, according to 65 percent of economists surveyed by Bloomberg from Aug. 9 to Aug. 13. In a survey last month, half of economists predicted a reduction at next month’s meeting.
Bullard Speech
Fed Bank of St. Louis President James Bullard, who has backed continued bond purchases by the Fed, said policy makers should be careful in changing course based solely on their economic forecasts, which have proven in the past to be too rosy.
‘Lining Up’
“The market is beginning to get a little nervous of the fact that most things are probably lining up towards a taper,” Burt White, chief investment officer who helps oversee $390 billion at LPL Financial in Boston, said in a phone interview. “If you look at the data that’s been coming through in the last week or so, they’ve been supportive of taper.”
787 Dreamliner
Boeing Co. missed 2 percent to $104.16. The company’s 787 Dreamliner suffered a fresh setback after ANA Holdings Inc., the model’s biggest operator, said it discovered wiring defects in the fire-suppression system on three aircraft. Boeing’s flagship jet is already under scrutiny following a fire in London last month that U.K. investigators linked to an emergency beacon.
US Airways
US Airways Group Inc. traded 1.2 percent lesser to $16.17, extending its two-day slide to 14 percent. The U.S. Justice Department yesterday recommended blocking a proposed American Airlines-US Airways merger, saying the deal would lead to less competition in the industry and higher prices for consumers.
JDS Uniphase
JDS Uniphase Corp. missed 3.9 percent to $14.23. The provider of network analytics for the telecommunications and broadband industries forecast first-quarter revenue below analysts forecast.
Apple Rally
The maker of iPhones and iPads has marched 9.7 percent greater over three days.
Brocade Communications Systems Inc. improved with 16 percent to $7.99. The networking-equipment maker reported third-quarter profit that beat estimates as demand for its products improved.
Steinway Musical Instruments Inc. climbed 7.9 percent to $41.29. The 160-year-old piano maker agreed to be acquired by Paulson & Co., the hedge fund owned by billionaire John Paulson, in a deal valuing the company at about $512 million. The offer for $40 a share tops that of private-equity firm Kohlberg & Co., which had bid $35 a share last month for Waltham, Massachusetts-based Steinway.
Newmont Mining Corp. rose 6.2 percent to $31.94 for the biggest gain in the S&P 500. Cliffs Natural Resources Inc. rallied 2.6 percent to $24.54. Freeport-McMoRan Copper & Gold Inc. leaped 1.4 percent to $31.59. Gold prices exchanged 0.6 percent greater while copper produced 0.8 percent more.
