Investors cashed in on profits from the two-day rally while remaining concerned about retail sales hampered by smaller profit margins. The Dow lost 42 points to 13,246 while Nasdaq lost 2 points to 2660.
On the upside
E-Trade Financial (Nasdaq: ETFC) raised $2.5 billion in cash from Citadel Investment Group selling off its entire portfolio of asset-backed securities for $800 million while taking a one-time $2.2 billion charge on the sale.
French drugmaker Sanofi-Aventis entered into a research and development deal with Regeneron (Nasdaq: REGN) paying $85 million upfront and agreed to invest up to $475 million over the next 5 years.
Analysts upgraded Dollar Tree Stores (Nasdaq: DLTR) which reported higher profits yesterday.
On the downside
Sears Holdings (Nasdaq: SHLD) reported near breakeven results as sales at its Sears and Kmart stores slipped while margins fell sharply.
Pep Boys - Manny, Moe & Jack (NYSE: PBY) continued to lose ground after the automative repair chain posted a wider loss and annoucing job cuts.
Conn's (Nasdaq: CONN) posted higher earnings and revenues, but missed analysts' estimates.
In the broad market, declining issues outpaced advancers by a margin of nearly 4 to 3 on the NYSE and by 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 768.