US Stocks Retreat From Highs To Close Lower

Major Wall Street indices drew back from record territory on Wednesday, as enthusiasm over good earnings numbers was overcome by the grinding politics of Washington.

The Dow and S&P 500 had started the day's trading with modest gains after their record-setting finishes on Tuesday, but slumped by the close as Democratic lawmakers in Congress appeared to make little progress on a long-awaited social spending package.

FHN Financial's Chris Low said despite fears the potential of US$2 trillion in spending under the plan could fuel more price increases, stock markets may view the package as necessary for the health of the wider economy.

"I could see from a stock standpoint, inflation is not the enemy. Growth is necessary," he said.

The benchmark Dow Jones Industrial Average dropped 0.7 percent to 35,490 at the close. The S&P 500 lost 0.5 percent to finish at 4,551.

The Nasdaq Composite Index was flat at 15,235.

Traders also were eyeing corporate earnings, which have provided a mixed view on the health of major corporations as they bounce back from the pandemic.

Coca-Cola climbed 1.9 percent after reporting higher profits in the latest quarter and signaling it expects improved earnings for the year as soft drink consumption improves worldwide.

Boeing closed down 1.5 percent after reporting a quarterly loss in a setback to its recovery from recent stumbles, citing ongoing troubles with the 787 aircraft.

After GM said its third-quarter profits sunk as did car sales due to the global semiconductor crunch the automaker predicted would persist into 2022, its shares finished 5.4 percent lower.

Google, which reported a big profit jump after markets closed Tuesday, finished up five percent. (AFP)