Closing Update: Stocks Back Away From Record High Following Big Jump in Producer Prices

Stocks closed lower Wednesday, pausing after two days of record highs for the Dow Jones Industrials Average and the S&P 500 after a surprisingly large jump in producer prices last month and weak financial results for Macy's ( M ) and John Deere ( DE ) following an unusually harsh winter season. Shares of consumer discretionary companies had the steepest declines, closely followed by industrial and technology issues.

U.S. producer prices jumped 0.6% in April, their largest increase since September 2012. The market consensus was looking for just a 0.2% rise. The monthly results have been more volatile in recent months since the Labor Department earlier this year revamped how it calculates PPI, adding services and construction costs.

Excluding the more food and fuel segment, producer prices increased 0.5%, also topping forecasts expecting a 0.2% rise.

Commodities were mixed. Crude oil for June delivery settled 67 cents higher at $102.37 per barrel while June natural gas rose 1 cent to finish at $4.37 per 1 million BTU. June gold was down $1.20 to settle at $1,294.70 per ounce while July copper slipped 2 cents to $19.53 per ounce. July copper was down 2 cents to finish at $3.13 per pound.

Here's where the U.S. markets stood at end-of-day:

Dow Jones Industrial Average down 101 points (-0.6%) at 16,613.97

S&P 500 down 8.9 points (-0.5%) at 1,888.53

Nasdaq Composite Index down 29 points (-0.7%) at 4,100


Hang Seng Index up 1.03%

Shanghai China Composite Index down 0.14%

FTSE 100 Index up 0.08%


(+) SUMR, Earns $0.05 per share, during Q1, beating the Capital IQ consensus looking for a $0.01 per share net loss. Revenue declines 14% to $50.8 mln but tops estimates by $5.58 mln. Also, Roth Capital upgrades to Buy from Neutral.

(+) LOJN, Arbitration panel dismisses all claims filed against the company by Tracker do Brasil LTDA, the exclusive licensee of LoJack Stolen Vehicle Recovery technology in Brazil. Panel will next meet to determine damages owed LOJN.

(+) RUBI, Raised to Outperform from Perform at Oppenheimer, citing valuation and the automated advertising company's recent Q1 results. RBC Capital Markets upgrades to Outperform but trims price target by $3 to $19 a share.


(-) FOSL, Q1 EPS of $1.22 beats by $0.05 per share. Revenue rises 14.1% to $777 mln, topping consensus by $6.31 mln. Forecasts Q2 EPS of $0.90 to $0.97 per share, trailing Street by at least $0.20. Guides Q2 revenue in-line with estimates.

(-) ENZY, Falls to all-time low after quarterly revenue of $17.9 million, lagging the Capital IQ consensus by $1.5 million. Earns $0.24 per share, beating analyst projections by $0.07. Guides FY14 EPS, revenue in-line with analyst expectations.

(-) HYGS, Prices offering of 1 million shares by the company and 500,000 shares by CommScope at $15 apiece, a 30.6% discount to Tuesday's close. The company plans to use proceeds for general corporate purposes, including replacing negative cashflows from operations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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