(Bloomberg News) The Standard & Poor's 500 Index snapped a three-day advance amid disappointing corporate results and after Federal Reserve Bank of Dallas President Richard Fisher said adequate economic stimulus is in place.
Priceline.com Inc., the biggest U.S. online travel agency by market value, tumbled 14 percent after forecasting earnings that missed forecasts. McDonald's Corp., the world's largest restaurant chain, retreated 2.8 percent as sales were unchanged worldwide in July. Hewlett-Packard Co. rallied 2.6 percent after raising its third-quarter profit forecast.
About eight stocks fell for every five that rose on U.S. exchanges at 9:53 a.m. in New York. The S&P 500 slid 0.2 percent to 1,398.70, after rising 2.7 percent in the previous three days. The Dow Jones Industrial Average dropped 19.38 points, or 0.2 percent, to 13,149.22. Trading in S&P 500 companies was down 13 percent from the 30-day average at this time of day.
"The market has gotten a bit ahead of itself on speculation of central bank action," said Kevin Caron, a market strategist in Florham Park, New Jersey, at Stifel Nicolaus & Co., which has more than $127 billion in client assets. "Even as the U.S. economy is moving at a relatively slow pace, there's very little evidence that encourages the Fed to come in with another significant round of quantitative easing."
Equities dropped as the Fed's Fisher said global central banks may not have the capacity to undertake additional measures. Stocks rose yesterday as Fed Bank of Boston President Eric Rosengren said the central bank should pursue an "open- ended" easing program of "substantial magnitude."
Investors also watched corporate results. Almost 59 percent of S&P 500 companies which reported second-quarter sales have missed analysts' estimates, Bloomberg data showed.
Priceline tumbled 14 percent to $581.45. Consumers in Europe -- one of the main engines of growth for Priceline -- put off travel amid an economic crisis there. The company had been boosting sales in the region after the 2005 acquisition of Amsterdam-based Booking.com. Results were also dragged down as the strength of the U.S. dollar eroded the value of overseas receipts, said Chief Executive Officer Jeffery Boyd.
Rival Expedia Inc. declined 1.5 percent to $58, while Orbitz Worldwide Inc. decreased 20 percent to $3.73.
McDonald's slumped 2.8 percent to $86.55. The company's U.S. sales decline was the worst performance since January 2010 as Americans pulled back spending amid flagging consumer confidence.