U.S. stocks dropped, ending the Standard & Poor’s 500 Index’s three-day rally, as investors moved past the Federal Reserve’s interest-rate increase and returned their focus to weakness in commodities and prospects for global growth.
A stronger dollar in the wake of the Fed’s move weighed on energy and raw-material shares, as crude tumbled below $35 a barrel. General Mills Inc. sank 3.3 percent after its quarterly results missed estimates, and Oracle Corp. slumped after its revenue fell short of forecasts. FedEx Corp. gained 2 percent after beating profit targets.
The S&P 500 fell 1.5 percent to 2,041.95 at 4 p.m. in New York, erasing Wednesday’s post-Fed gains, and paring an advance this week that previously had the gauge up 3 percent. The index slipped below its average prices during the past 50 and 200 days.
Earnings had some influence on Thursday’s trading, with Oracle sinking the most in six months after revenue missed analysts’ estimates for the 10th time in 12 quarters. The company has been pressured as customers transition from the traditional model of buying software installed on corporate computer systems to products delivered over the Internet.
General Mills had its biggest slide since September after the maker of Cheerios and Lucky Charms posted results that missed estimates, hurt by sluggish demand for breakfast cereals in the U.S. FedEx gained 2.2 percent after its earnings beat estimates and the package delivery giant said growth in e-commerce is resulting in record holiday shipments so far this season.
Source : Bloomberg