NEW YORK |
NEW YORK (Reuters) – Stocks dipped on Tuesday as shares pulled back after the Dow breached 13,000 for the first time since May 2008, the latest big move in stocks’ recent rally.
Greece’s securing a bailout to avoid a disorderly default initially supported stocks, but investors said the news had been priced in to the market.
Climbing oil prices gave investors a reason to sell. U.S. crude oil prices rose 2.5 percent to a nine-month high of $105.84 a barrel on Iran supply worries.
Signs of improvement in the economy and stabilization of Europe’s debt crisis have driven the Dow more than 20 percent higher since late last year, while the SP has climbed more than 8 percent so far this year.
Euro zone finance ministers agreed on a 130 billion euro ($172 billion) rescue for Greece to avert an imminent chaotic default after forcing Athens to commit to unpopular cuts and private bondholders to take bigger losses.
The Dow was trading at 12,938 after briefly trading above 13,000.
“We’re running into some minor selling pressure given the extent of the rally we’ve seen,” said Fred Dickson, chief market strategist at D.A. Davidson Co. in Lake Oswego, Oregon, despite the upbeat news on Greece.
Even with the bailout, Greece faces a long road to economic recovery. European Union officials said the Greek economy will only return to growth in 2014 after a recession that will shrink output by 17 percent.
Results from retailers were mixed. Wal-Mart Stores Inc (WMT.N) shares were the top drag on the Dow, falling 4.2 percent to $59.81, after its quarterly profit came in short of expectations.
The Dow Jones industrial average .DJI was down 11.62 points, or 0.09 percent, at 12,938.25. The Standard Poor’s 500 Index .SPX was down 1.97 points, or 0.14 percent, at 1,359.26. The Nasdaq Composite Index .IXIC was down 15.24 points, or 0.52 percent, at 2,936.54.
Home Depot Inc (HD.N) shares were up 0.3 percent at $46.86 after the home improvement chain’s quarterly profit beat estimates.
Macy’s Inc (M.N) climbed 3.1 percent to $37.41 as the
(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)