A tech stock rebound lost steam Tuesday, and the major indexes ended in the red. Fred Katayama reports.
Wall Street edged lower Tuesday. A rally by tech stocks was offset by falling telecom and utilties shares. The Nasdaq fell for the third straight session. PNC Asset Management global chief investment strategist Bill Stone is still bullish on technology. SOUNDBITE; BILL STONE, GLOBAL CHIEF INVESTMENT STRATEGIST, PNC ASSET MANAGMENT, (ENGLISH) SAYING: "We certainly still remain positive on tech stocks. We actually think people are a little short sighted around yes, they don't benefit as much because they are so global from the lower U.S. corporate tax rate. But a lot of them would benefit quite a bit from two other things. One is on the repatriation because a lot of them have a lot of cash overseas." Toll Brothers' disappointing results pulled down shares of rivals PulteGroup, Lennar and D.R. Horton as well. The luxury homebuilder's quarterly profit surged higher but missed analysts' estimates, and its orders grew at its slowest pace in six quarters. The Dow's top gainer: McDonald's. Jefferies upgraded the shares of the fast-food giant to "buy" from "hold," applauding its efforts to refranchise and use data and technology to outperform in the current environment. Regal Entertainment Group's shares zoomed higher. Britain's Cineworld is buying the movie theater chain for $3.6 billion. In economics news, the U.S. trade deficit rose more than expected in October to a nine-month high. In Europe, stocks slipped, dragged down by cyclical stocks.