Wall Street's new-year slump extended into a third session Wednesday as concerns about inflation and higher interest rates sapped buyer confidence.
Stocks did manage to get an early, but temporary, boost after a key report showed an expansion in non-manufacturing sectors of the economy in December. The Institute for Supply Management's non-manufacturing index rose to 63.1 percent from 61.3 percent in November, beating many economists' predictions.
The Dow Jones Industrial Average was down 32.95 points, or 0.3 percent, at 10,597.83 and the Standard & Poor's 500 Index was down 4.3 points, or 0.4 percent, at 1,183.75. The Nasdaq Composite Index was down 16.62 points, or 0.8 percent, at 2,091.24.
Among local movers, Tag-It Pacific Inc.'s stock rose 3.4 percent to $4.55 after the Woodland Hills-based apparel company announced its Talon Division signed a three-year, $7.5 million purchase agreement in Asia.
OSI Systems Inc. jumped 5.1 percent to $21.72 after the Hawthorne-based technical instrument firm's stock was upgraded to "strong buy" from "neutral" by Roth Capital Partners.
And Guess Inc. gained 0.3 percent to $13. 38, after Wedbush Morgan initiated coverage of the apparel company with a "buy" recommendation. On Tuesday, L.A.-based Guess's stock price surged after it was raised to "outperform" by research firm Piper Jaffray.
On the down side, Maguire Properties Inc. dropped 5.2 percent to $25.67 the day after the L.A.-based real estate firm announced that its largest tenant, the Los Angeles Unified School District, would most likely not renew its lease option at KPMG Tower for 225,000 square feet. The lease expired on Dec. 31.
And Superior Industries International Inc.'s stock price slipped 2.9 percent to $26.90 after it was downgraded to "underweight" from "hold" by KeyBanc Capital Markets.
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