Technology firms led a decline in U.S. stocks yesterday while concern that today's government report on May employment may prompt the Federal Reserve to quicken the pace of interest-rate increases contributed to the drop.
Intel fell amid speculation about its sales forecast. Other semiconductor makers also fell.
"We still need to see positive surprises for these stocks to continue to move higher," said Ken Tyszko, who helps manage $24 billion at Voyageur Asset Management in Minneapolis. "Until there is a firmer sense of where the Fed is going, the market will be in a holding pattern."
The Standard & Poor's 500-stock index fell 8.35, or 0.7 percent, to 1116.64, retreating from a five-week high. The Dow Jones industrial average dropped 67.06, or 0.7 percent, to 10,195.91. The Nasdaq composite index fell 28.72, or 1.4 percent, to 1960.26. It marked the first time since May 17 that all three benchmarks declined on the same day.
Intel fell 60 cents, to $27.41, and was the biggest contributor to the S&P 500's decline. After the close, the world's largest maker of semiconductors said second-quarter sales may meet its highest estimates. The company said revenue will rise to $8 billion to $8.2 billion. In April, Intel forecast a range of $7.6 billion to $8.2 billion. The stock gained 48 cents, to $27.89, in extended trading.
Texas Instruments, whose microchips power more than half the cell phones sold last year, fell 84 cents, to $24.34. Advanced Micro Devices, the second-largest maker of personal-computer processors, declined 49 cents, to $14.59. Micron Technology, the world's No. 2 maker of computer-memory chips, dropped 70 cents, to $14.05. National Semiconductor, which makes chips that boost battery life in mobile phones and laptop computers, declined $1.01, to $20.17.
Some retailers declined after sales failed to meet expectations. Dillard's, a 66-year-old department-store chain, fell $1.47, or 7.1 percent, to $19.23, for the second-biggest drop in the S&P 500. Sears, Roebuck dropped $1, to $37.13. The largest U.S. department-store chain said May sales fell 3.7 percent.
* The New York Stock Exchange composite index fell 49.63, to 6456.71; the American Stock Exchange index fell 7.68, to 1195.14; and the Russell 2000 index of smaller-company stocks fell 11.12, to 562.44.
* Declining issues outnumbered advancing ones by 8 to 3 on the NYSE, where trading volume fell to 1.23 billion shares, from 1.25 billion on Wednesday. On the Nasdaq Stock Market, decliners outnumbered advancers by 5 to 2 and volume totaled 1.49 billion, down from 1.5 billion.
* The price of the Treasury's 10-year note rose $1.88 per $1,000 invested, and its yield fell to 4.72 percent, from 4.74 percent on Wednesday.
* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 110.84 yen, up from 110.06 late Wednesday, and a euro bought $1.2219, down from $1.2226.
* Light, sweet crude oil for July delivery settled at $39.28, down 68 cents, on the New York Mercantile Exchange.
* Gold for current delivery fell to $388.10 a troy ounce, from $391.60 on Wednesday, on the New York Mercantile Exchange's Commodity Exchange.