U.S. stocks fell, a day after the Standard & Poor’s 500 Index failed to hold at an almost four- year high, as sales of previously owned houses missed estimates and data from Europe and China spurred economic concern.
U.S. stocks are in the early stages of a “multi-year bull market,” with the largest companies priced “like Rembrandts laying on the driveway in a tag sale,” according to David Darst , the chief investment strategist at Morgan Stanley Smith Barney.
U.S. stocks fell, with the Standard & Poor’s 500 Index posting its biggest three-day slump since July, and oil dropped after American jobless claims unexpectedly rose, adding to evidence the economic recovery is weakening. Cisco Systems Inc. tumbled after forecasting sales that missed analysts’ estimates. The Swiss franc and gold prices advanced.
The U.S. economy is slowly reviving, leaving behind with each passing month the worst downturn since the Great Depression. It goes without saying that an expanding economy is better than a contracting one, but the consensus outlook is far from cheery. Instead, it calls for years of muted growth and high unemployment.