U.S. stocks dip as investors sell for profits; Dow falls 0.21%

U.S. stocks dip as investors sell for profits; Dow falls 0.21%

Investing.com – Profit taking sent U.S. stocks falling on Tuesday after investors locked in gains and sold for profits in wake of a rally that sent indices hitting record highs.

At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.21%, the S&P 500 index fell 0.24%, while the Nasdaq Composite index ended the day flat.

Last week, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase.

Official data also revealed that the U.S. economy grew 2.8% on year in the third quarter, well beyond expectations for 2.0% growth.�

Stocks rallied on the news amid hopes for a more robust U.S. economy down the road, though concerns better data will prompt the Federal Reserve to begin tapering its monthly USD85 billion bond-buying program in December or March sparked profit taking on Tuesday.

Stimulus programs aim to drive recovery by depressing borrowing costs, boosting stocks in the process, though talk of their dismantling can deflate share prices by fueling uncertainty over how equities will perform without a monetary crutch.

Many expect the U.S. central bank to remain in standby mode until Janet Yellen takes the helm of the Fed and holds her first policy meeting in March, though investors sold stocks on the notion that be it in December or March, stimulus tools are on their way out.

Leading Dow Jones Industrial Average performers included Merck, up 1.31%, Cisco, up 1.22%, and Intel, up 1.10%.

The Dow Jones Industrial Average's worst performers included The Travelers Companies, down 1.75%, Chevron, down 0.90%, and Walt Disney, down 0.83%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 0.53%, France's CAC 40 fell 0.61%, while Germany's DAX 30 fell 0.34%. Meanwhile, in the U.K. the FTSE 100 finished down 0.02%.