2013.09.1304:31:52UTC+00U.S. stocks retreat as investors weigh stimulus plans, Syria

U.S. stocks backed down, ending a seven-day win streak for the Standard & Poor’s 500 Index, as materials producers skidded amid growing concern over Syria and investors weighed the prospects for Federal Reserve stimulus trims.

Barrick Gold Corp. relinquished 5.5 percent as the precious metal sagged down the most since July. Newmont Mining Corp., the biggest U.S. gold producer, missed 4.2 percent. Lululemon Athletica plunged 5.4 percent after trimming its profits prediction. Walt Disney Co. rose 2.4 percent after saying it would purchase back as much as $8 billion in shares. Pandora Media Inc. leaped 12 percent to a record after naming digital-advertising veteran Brian McAndrews as its new chief executive officer.

Kerry Calls

The tensions increased today as U.S. Secretary of State John Kerry told top Syrian opposition figures in a phone call today that the option of a U.S. military strike remains on the table, according to a State Department official. Kerry arrived in Geneva for talks with his Russian counterpart on a proposal for Syria to surrender its chemical weapons.

Report Glitch

A report today showed unemployment claims in the U.S. declined last week to the worst point since April 2006 as upgrades to computer systems in two states caused those employment agencies to report fewer applications.

Volatility

Speculation about reductions has whipsawed stocks since May, when Fed officials first indicated cuts could start this year. The S&P 500 plunged down 5.8 percent from a record on May 21 through June 24. It bounced back 8.7 percent to close at its latest all-time high of 1,709.67 on Aug. 2. The gauge then sag down as much as 4.6 percent before the seven-day rally through yesterday brought it back to within 1.2 percent of the record and above the May 21 peak.

Banks, Miners

JPMorgan Chase & Co. slid 1.9 percent to $52.24 for the worst performance in the Dow. The bank may settle regulators’ probes into the bank’s credit-card debt collection practices and sales of identity-theft products as early as next week, according to two people with knowledge of the matter.

Yogawear, Disney

Lululemon retreated 5.4 percent to $65.29. The yogawear retailer searching for a new chief executive officer cut its profit forecast as new rivals enter its market and shoppers cut spending on clothing. Earnings per share will be as much as $1.97, down from a previous projection of a maximum of $2.01, the Vancouver-based company said. The average of 29 analysts’ estimates compiled by Bloomberg was $1.99.

Verizon Borrows

Verizon produced a profit for investors of about $2.09 billion for agreeing to buy the record $49 billion of bonds it sold yesterday as the price of the securities surged. The debt sale topped Apple Inc.’s $17 billion offering in April and will help pay for the company’s planned $130 billion purchase of Vodafone Group Plc’s stake in Verizon Wireless.

Vertex Pharmaceuticals Inc., a developer of small-molecule pharmaceuticals, rose 2 percent to $81.40, and Ametek Inc., a manufacturer of electronic instruments, added 2.6 percent to $45.57. S&P Dow Jones Indices said the two companies will join the S&P 500, replacing Advanced Micro Devices Inc. and SAIC Inc.

AMD diminished 1.8 percent to $3.75 and SAIC increased 1.3 percent to $14.96.

Strategists at Goldman Sachs Group Inc. said stocks will continue to rally as the bull market in equities moves into a new phase driven by earnings growth rather than expanding valuations.

Equities will produce more moderate returns with lower volatility in the second phase of the bull market, according to Peter Oppenheimer, Goldman’s chief global equity strategist, who reiterated his bullish stance on stocks. Oppenheimer said in a March 2012 report that the prospects for returns from equities versus bonds “are as good as they have been in a generation.”