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Why did Wall Street retreat from record territory?

Investors sold Internet and small cap. shares on Wall Street overnight, taking some gloss off the Dow and S&P 500 recent record highs. Commodities rallied, with gold and oil jumping. The ASX SPI 200 is off 23 points to 5488.

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Wall Street retreated from record highs overnight as investors resumed selling Internet and small-cap shares.

The Russell 2000 has fallen 2.7% in the past two days.

Groupon Inc. sank 4.4% which helped drag the Dow Jones down by 101 points to 16,614 by the close. The S&P 500 gave up 8.9 points to 1888.5. The NASDAQ lost 30 points to 4101.


Commodities

June gold rose 0.9% to finish at US$1,305.90 an ounce on the Comex on Ukraine worries and the potential for stimulus measures in Europe.

June crude increased 0.7% to finish at US$102.37 a barrel on the New York Mercantile Exchange.


Wall Street round-up


In corporate activity, Macy's (NYSE:M) shares were teetering between slight losses and gains after the company reported first quarter results that beat expectations as sales improved in April after harsh weather hurt business between January and March. Sales missed estimates, however.

Kate Spade (NYSE:KATE) shares jumped 9% on Wednesday after it reported comparable direct-to-consumer sales at its namesake brand jumped 22%, without the benefit of an extra week this year.

Deere & Co (NYSE:DE) shares fell 2.3% after it said its fiscal second quarter profit fell on lower equipment sales. But both profit and revenue beat expectations. The company also said it expects global agricultural equipment sales to slip 4% in the current period, less than the 7% drop forecast by analysts, but it also projected a 4% decline in equipment sales for the year, steeper than its prior forecast of 3%.

Sony (NYSE:SNE) said it is forecasting an annual loss for the second straight year, and also plans to implement new restructuring measures. The company's shares sunk more than 6.6% Wednesday.

Shares of Plug Power (NASDAQ:PLUG) fell over 7% Wednesday after the company posted a first-quarter loss that was greater than analysts expected.

Dow component Cisco Systems (NASDAQ:CSCO) is due to report quarterly results after the closing bell today.

In other stock news, Sears Holdings (NASDAQ:SHLD) said it is looking to sell its 51% stake in Sears Canada, with the news coming one month after the struggling retailer spun off its Lands' End division.

GlaxoSmithKline's (NYSE:GSK) former China head, Mark Reilly, and two Chinese colleagues have been charged by China with corruption following an investigation that found the company made billions in yuan bribing doctors and hospitals.

 

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