Wall Street loses momentum and stocks post losses

NEW YORK (AP) — The upward momentum in stock prices on the New York Stock Exchange halted Tuesday, with stocks closing lower a day after reaching their highest level since the beginning of August.

The S&P 500 index fell 9.19 points, or 0.2%, to 4,538.19, just its third loss in the last 17 days. The Dow Jones Industrial Average fell 62.75 points, or 0.2%, to 35,088.29, and the Nasdaq Composite lost 84.55 points, or 0.6%, to 14,199.98.

Retailers had mixed results after several of them reported their earnings for the latest quarter, and even more importantly, their forecasts for the holiday shopping season.

Lowe’s sank 3.1% even though its latest quarter earnings were better than analysts expected. Its revenue came in below Wall Street estimates, and it also cut its full-year revenue and profit forecasts. Sales of do-it-yourself projects have been lower than expected at this home improvement retailer.

Best Buy fell 0.7% after also beating analysts’ earnings expectations in the latest quarter, but fell short on revenue. Its CEO, Corie Barry, said customer demand has been “more irregular and difficult to predict.”

Best Buy cut its full-year revenue forecast, along with other financial measures.

On the winning side of Wall Street was Dick’s Sporting Goods, which rose 2.2%. It posted higher profits and revenue in the third quarter than analysts expected, as customers bought more in each transaction and made more total purchases. The sporting goods retailer raised its guidance for full-year results.

Retailers are wrapping up what has been a better-than-expected summer earnings season. According to FactSet, companies in the S&P 500 Index are on track to post their first year-over-year earnings per share growth in a year.

But interest rates have been the biggest factor influencing the stock market recently. Stocks have risen on growing hopes that inflation has cooled enough that the Federal Reserve’s next move on rates will be a cut rather than an increase.

The 10-year Treasury yield fell from 4.42% to 4.41%.

Associated Press writer Yuri Kageyama contributed to this report.