US stocks retreat as markets await Snapchat trade

Analysts said the pause was not surprising after the Dow piled on 1.5 percent to close above 21,000 points


Afp March 02, 2017
Snap cofounders Evan Spiegel (R) and Bobby Murphy wait to ring the opening bell of the New York Stock Exchange (NYSE) shortly before the company's IPO in New York, U.S., March 2, 2017. PHOTO: REUTERS

NEW YORK: Wall Street stocks dipped early Thursday, retreating a bit from records set in the prior session fueled by continued optimism about economic growth policies under President Donald Trump.

Analysts said the pause was not surprising after the Dow piled on 1.5 percent Wednesday to close above 21,000 points for the first time. That record followed positive reviews of Trump's speech to Congress Tuesday night outlining policy priorities, despite giving few details.

Markets also were gearing up for the first trades in vanishing-message company Snapchat after an initial public offering on Wednesday priced at $17 per share to raise $3.4 billion.

Snapchat parent company valued at $24 billion

About 15 minutes into trading, the Dow Jones Industrial Average stood at 21,114.41, down a hair.

The broad-based S&P 500 had slipped 0.2 percent to 2,391.89, while the tech-rich Nasdaq Composite Index shed 0.1 percent to 5,895.85.

Optimism that Trump and congressional Republicans will enact tax cuts has fueled a major market rally since election day. US economic data has also improved.

We may see a Snapchat drone in the future

Still, analysts have said Trump has been slow to release details on the plans. Other controversies could also derail the agenda, such as Trump's stances on immigration and trade.

There was little data to move markets Thursday, but the Labor Department reported new claims for unemployment insurance hit the lowest level in almost 44 years last week.

Grocery chain Kroger dropped 3.3 percent after reporting fourth quarter net income dropped 9.5 percent to $506 million.

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