By Echo Wang
(Reuters) – US stocks ended lower on Tuesday, as steep decline in telecoms stocks and weak house-building data overshadowed better-than-expected results from retailers Walmart and Home Depot.
* AT&T Inc was one of the top performers on the S&P 500 Index, after it announced it would cut dividend payouts as a result of its $ 43 billion deal with Discovery Inc.
* T-Mobile and Verizon Communications also fell.
* The top three indexes opened higher after Walmart, the world’s largest retailer, raised its full-year earnings forecast and Home Depot reported comparable quarterly sales that beat estimates.
* “Both are hallmarks of the strength of the business sector as well as the consumer. In other words, Walmart and Home Depot cannot be profitable without the consumer spending stimulus checks, embracing e-commerce, and returning to business. the stores, “said Ross Mayfield, investment strategist at Baird.
* “Much of the bullish thesis for the market right now is still built on a really strong reopening of the economy,” he added.
* Despite its strong performance, Home Depot shares fell, pressured by a lack of strong outlooks and housing data.
* Figures showed that the construction of houses in the United States fell more than expected in April, probably dragged by the rise in prices of wood and other materials.
* The Dow Jones Industrial Average fell 267.13 points, or 0.78%, to 34,060.66 units, while the S&P 500 fell 35.47 points, or 0.85%, to 4,127.82 units. The Nasdaq lost 75,412 points, or 0.56%, to 13,303,636 units.
* Wall Street has been volatile in recent days, with investors worried that an overheating economy will lead the Federal Reserve to curb its monetary support.
(Report by Medha Singh and Shashank Nayar in Bengaluru; Edited in Spanish by Javier López de Lérida)