The major averages retreated for the second consecutive day from their all-time highs as investors digested key earnings reports. The Dow fell 115 points while the Nasdaq Composite declined 0.5%. The S&P 500 lost 0.7%, to close below the 3,000 point mark.
The Industrials group paced the decline, with rail operator CSX slumping 10.3% after missing analyst projections and cutting revenue guidance for the year. The Dow Jones Transportation Average, an indicator for economic growth, sank the most since May following the CSX earnings report. Bank of America added 0.9% after besting profit expectations and cutting guidance amid lower rate expectations. Abbott Laboratories advanced 3.1% after narrowly exceeding earnings expectations and raising full-year guidance. Shares of Qualcomm finished fractionally higher after the DOJ asked the U.S. appeals court to delay anti-trust ruling against the semiconductor company.
On the data front, updates showed housing starts declined to a three-month low and building permits fell to the lowest since May 2017 during June. Separately, mortgage applications dipped 1.1% in the most recent week after a 2.4% drop the prior period. The Federal Reserve released its Beige Book, which said the U.S. economy is expanding at a moderate pace, little changed from the prior update. Treasuries strengthened, with the yield on the 10-year note down five basis points to 2.05%.
In commodities, WTI crude declined 1.1% to $56.57/barrel despite a government report showing U.S. crude stockpiles declined for the fifth consecutive week.