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The Journal Gazette

Tuesday, June 10, 2014 8:17 am

Stocks head lower in midday trading on Wall Street

NEW YORK (AP) The stock market drifted lower Tuesday after major indexes reached another record high the day before. Shares of RadioShack are sliding as the retailer's losses mount.

KEEPING SCORE: The Standard & Poor's 500 index is down two points, or 0.1 percent, to 1,949 as of 11:40 a.m. Eastern. The S&P 500, the most widely used benchmark for mutual funds, crept to another record high on Monday and has ended higher the last four days.

The Dow Jones industrial average fell seven points, less than 0.1 percent, to 16,936, while the Nasdaq gave up three points, also less than 0.1 percent, to 4,333.

DOUBTERS: The S&P 500, which slumped in the spring, has been on a slow and steady climb since mid-April, and has notched a number of record highs. Some analysts argue that this success is fragile.

"I've never seen a rally that has been so hated and mistrusted before," said Dan Veru, chief investment officer at Palisade Capital Management. "People ask me, 'Why is the stock market up? When should I bail out before the next crash?'"

ON SALE: RadioShack's stock fell 15 cents, or 9 percent, to $1.39 after the retailer posted a deeper loss than analysts had expected. Sales also slumped.

BUY BACK: MetLife Inc.'s stock rose 30 cents, or 0.5 percent, to $54.94 after the insurer said it plans to buy its own shares for the first time in about six years, with the goal of spending up to $1 billion on its own stock.

FOREVER YOUNG: Botox maker Allergan rejected a buyout offer from Valeant Pharmaceuticals and Bill Ackman's Pershing Square Capital Management, saying the $53 billion bid undervalues the company and creates too much risk. Allergan's stock was up seven cents to $164.20.

EUROPE: The region's major stock indexes ended little changed. Germany's DAX was up 0.2 percent, while France's CAC-40 rose 0.1 percent. In the U.K., the FTSE 100 index was flat.

BONDS AND COMMODITIES: In the market for U.S. government bonds, the yield on the 10-year Treasury inched up to 2.65 percent from 2.61 percent late Monday. Yields rise when bond prices fall. The price of oil rose 32 cents to $104.73 a barrel.