US Stocks Down on Healthcare and Rate Anxiety

Wall Street’s main indexes pared early gains on Wednesday, weighed down by losses in energy and healthcare stocks

Oil prices fell more than 1 percent after data showed a surprise build in U.S. crude inventories, pushing the S&P energy index .SPNY down 0.31 percent.

Celgene’s 8 percent drop (CELG.O) was a drag on the healthcare sector after U.S. health regulators rejected the company’s application seeking approval of a multiple sclerosis drug.

At 11:04 a.m. ET, the Dow Jones Industrial Average .DJI was up 0.08 percent at 25,430.95.

The S&P 500 .SPX gained 0.13 percent to 2,747.86 and the Nasdaq Composite .IXIC rose 0.19 percent to 7,344.06.

Stocks opened higher on Wednesday after U.S. economic growth was revised slightly lower for the fourth quarter.

The U.S. Commerce Department said gross domestic product expanded at a 2.5 percent annual rate, instead of the previously reported 2.6 percent pace.

Strong economic data earlier in the month had raised fears among traders that U.S. interest rates would rise faster than previously expected, sparking Wall Street’s biggest selloff in two years.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza