Stocks turned lower on Thursday, led by energy and financials, amid the strengthening dollar and a pair of credit downgrades on BP. Techs were among the best performers.
Economic data were a mixed bag: The services sector grew for a fifth straight month but the report wasn't a blowout. Stocks had opened higher after a pair of encouraging employment reports.
Energy and financials have swung between positive and negative territory in the past few sessions, taking the broader market with them.
The Dow Jones Industrial Average fell into negative territory, after being up more than 60 earlier.
The S&P 500was trading lower, while the Nasdaqbobbed in and out of the positive zone. The CBOE volatility indexrose to trade above 30.
The biggest drags on the Dow were Alcoa , DuPont and Home Depot . Microsoft, Cisco and Hewlett-Packard rose as techs were among the day's best performers.
Stocks saw their third best day of the yearWednesday, thanks to a late-session rally, with each of the three major indexes ending more than 2 percent higher. Energy and financials shares were the lead gainers after better-than-expected housing data boosted investor sentiment.
The Dow has now had triple digit moves in 19 of the past 26 sessions dating back to April 27. In the month prior to that date, the Dow had only two triple-digit moves.
“Yesterday’s rally was a short-term pause in a pre-established downtrend,” said Tom Schrader, managing director for U.S. equity trading at Stifel Nicolaus. “We’re seeing weakness in euro/dollar, which is not good for equities, and continued speculation on the European banking community and economy.”
Stocks may fall another 5 percent during these summer months, Schrader added.
There’s also speculation that the Swiss banking community may not be supporting the euro as they have in the past, he added.
The dollar rose broadly against the eurowhile credit spreads tightened, with three-month Libor rising to 0.5378 percent and the Ted spread, or the difference between Libor and the three-month Treasury note, increasing to 0.3958 percent.
Oil prices rose toward $74 a barrel after U.S. government data showed crude and gasoline stocks had fallen more than expectedlast week. And gold fell near $1,200 an ounce.
Gold miners took a hit as shares of Barrick Gold , Newmont Mining and AngloGold each dropped more than 2 percent.