Telecom and industrial stocks dragged down the major U.S. markets Monday after Wall Street earlier hit record intraday highs. Fred Katayama reports.
Wall Street wiped out earlier gains after hitting record highs Monday morning on Japanese Prime Minister Shinzo Abe's election win. Telecom led the list of decliners, and GE dragged down the S&P 500. Voya Financial's head of asset allocation Barbara Reinhard: SOUNDBITE: BARBARA REINHARD, HEAD OF ASSET ALLOCATION, VOYA FINANCIAL, (ENGLISH) SAYING: "I think there's a lot of wait-and-see on the earnings season. You had a number of companies report last week. I think there's a big wait-and-see approach. Some of the price action that we've seen over the last couple of days is companies that have been beating have not necessarily been rewarded." Hasbro shares dropped. The toymaker issued a weak forecast for the holiday season due to the bankruptcy filing of Toys "R" Us, which sells 9 percent of Hasbro's inventory. T-Mobile US shares gained. Quarterly profit at the third largest carrier in the U.S. surged higher, and the company added 595,000 subscribers who pay monthly phone bills. General Electric shares fell. A number of analysts slashed their price targets on the industrial conglomerate, citing a higher probability that it'll cut dividends. In Europe, a rally in technology and utilities shares nudged the markets higher.