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Nasdaq leads market lower despite Twitter IPO

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(Globalpost/GlobalPost)

US stocks Thursday retreated with the biggest decline coming in the tech-rich Nasdaq Composite despite the much-anticipated debut in trade of Twitter.

Analysts attributed the drops to profit-taking in some tech stocks and revived concerns that the Federal Reserve could scale back its bond-buying program.

About 65 minutes into trade, the Dow Jones Industrial Average gave up 34.61 (0.22 percent) at 15,712.27.

The broad-based S&P 500 fell 9.38 (0.53 percent) to 1,761.11, while the tech-rich Nasdaq Composite Index declined 47.09 (1.20 percent) to 3,884.86.

Some of the biggest declines came in high-flying technology shares.

Tesla tumbled 6.2 percent, Amazon declined 2.2 percent, Facebook lost 2.1 percent and Priceline fell 1.4 percent.

The retreat in the Nasdaq came after Twitter raised $1.8 billion in an IPO and was poised to trade on the New York Stock Exchange for the first time.

The stock opened just above $45, well over the $26 IPO price.

Analysts also cited a surprisingly strong report showing the US economy grew at an annual rate of 2.8 percent in the third quarter, well above the 1.9 percent projected by analysts.

Peter Cardillo of Rockwell Global Capital said the strong growth pace suggested the Fed might scale back its bond-buying program in December.

"The market might be pricing in a December trimming," Cardillo said.

Struggling department-store chain J.C. Penney jumped 4.7 percent after reporting that same store sales increased 0.9 percent in October. An upbeat statement from the company reported "significant progress" in addressing the company's challenges.

Telecom company Qualcomm fell 2.9 percent after earnings of $1.05 per share trailed expectations by three cents.

Drilling company Transocean shot up 4.2 percent after earnings of $1.37 per share exceeded expectations by 30 cents. Revenues rose nearly 7 percent.

Bond prices rose. The yield on the 10-year US Treasury slipped to 2.63 percent from 2.64 percent, while the 30-year dipped to 3.76 percent from 3.77 percent. Bond prices and yields move inversely.

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http://www.globalpost.com/dispatch/news/afp/131107/nasdaq-leads-market-lower-despite-twitter-ipo