Investors scoop up profits, send Wall Street indices down

U.S. stocks fell on their first day of trading in 2014 as investors booked profits in the wake of the S&P 500's best yearly advance since 1997, with many of last year's strongest performers down on the day.

 

All 10 S&P 500 sectors were lower, with tech among the biggest drags after Wells Fargo downgraded Apple Inc (AAPL.O) to "market perform" from "outperform," saying the company's market cap had limited upside potential without material market share gains.

 

Apple fell 1.4 percent to $553.13 and was the biggest drag on both the S&P 500 and Nasdaq 100 .NDX indexes. The S&P technology index .SPLRCT fell 1.1 percent.

 

Adding to the weakness in the group were stocks that had enjoyed the best gains in 2013, including Netflix (NFLX.O), which was down 1.5 percent at $362.82, and Micron Tech Inc (MU.O), which was off 0.4 percent at $21.66. Both names more than tripled last year.

 

"There's no fundamental underpinning to the decline today, just basic portfolio rebalancing on the first day of a new tax year," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments. "People are taking profits and seeking bargains."

 

Almost two-thirds of stocks traded on the New York Stock Exchange closed lower while 61 percent of Nasdaq-listed shares closed down.

 

Newmont Mining (NEM.N) was one of the biggest gainers of the day, up 4 percent to $23.96; the stock was the weakest S&P component of 2013.

 

Gold prices rose 1.5 percent following a 28 percent slump over 2013, a drop that broke a 12-year advance for the precious metal and was its worst yearly performance since 1981.

 

The Dow Jones industrial average .DJI was down 135.31 points, or 0.82 percent, at 16,441.35. The Standard & Poor's 500 Index .SPX was down 16.38 points, or 0.89 percent, at 1,831.98. The Nasdaq Composite Index .IXIC was down 33.52 points, or 0.80 percent, at 4,143.07.

 

The S&P closed 2013 with a 29.6 percent gain for the year, its best annual performance since 1997. The Dow surged 26.5 percent in its best year since 1995. The Nasdaq jumped 38.3 percent, its best year since 2009.  — Reuters