Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Extend Slump

11/15/2012 | 07:36am US/Eastern

--Stocks end back-and-forth trading day lower

--Declines are sixth in past seven sessions

--Economic data mixed, distorted by superstorm Sandy

NEW YORK--The Dow industrials ended a whipsaw day with their sixth decline in the seven sessions since the presidential election, as a group of middling economic data reports failed to snap stocks out of their slump.

The Dow Jones Industrial Average fell 28.57 points, or 0.2%, to 12542.38. The average has shed more than 5% since the U.S. presidential election. The blue chips swung between gains and losses several times, and separately, hovered around zero for some time.

The Standard & Poor's 500-stock index lost 2.16 points, or 0.2%, to 1353.33. The Nasdaq Composite shed 9.87 points, or 0.3%, to 2836.94. Telecommunications companies were the biggest laggers in the S&P 500, followed by utilities.

Economic data points provided a mixed view of the state of the U.S. recovery, with readings obscured by superstorm Sandy.

"Unfortunately, I think we're going to see some skewed numbers from the hurricane for a while. The reason it's unfortunate is that we'd love to have more accuracy, and we were starting to see a positive trend," said Mike Shea, managing partner with Direct Access Partners.

Initial claims for jobless benefits in the latest week spiked to 439,000, well above the 375,000 claims expected by economists, and analysts pinned much of the jump on the storm.

"There's no indication elsewhere that the gentle improvement in the labor market has done anything other than move forward," said Andrew Wilkinson, economic strategist with Miller Tabak.

The Philadelphia Fed's manufacturing index for November came in lower than expected, with its reading of -10.7 indicating contraction. Amna Asaf, an economist with Capital Economics, wrote in a note that the Philadelphia reading was also likely affected by Sandy.

The consumer price index for October rose 0.1% on the month, in line with economist expectations. The Federal Reserve Bank of New York's Empire State index of manufacturing activity for November improved slightly, to -5.2 in November from -6.2 in October. However, it indicates the fourth consecutive month of contraction.

Stocks hit their session lows around noon, when concerns spread about tensions in the Middle East, with reports circulating that a rocket fired from the Gaza Strip landed near Tel Aviv.

"It seems like everything is going the wrong way today. If tensions rise, then we run that risk of rising oil and gas prices as we close in on the holiday season," said Alan Gayle, senior investment strategist with RidgeWorth Investments, an Atlanta-based firm with $47 billion under management.

In earnings news, Dow component Wal-Mart Stores dropped 3.6% after the discount retailing giant reported worse-than-expected third-quarter revenue and fourth-quarter projections. It also indicated that challenges regarding alleged violations of the U.S. Foreign Corrupt Practices Act appear to have expanded. Its big-box retail rival Target gained 1.7% after beating Wall Street estimates and providing an outlook that exceeded expectations.

European markets closed broadly lower, with the Stoxx Europe 600 down 1% at a 2 1/2-month low, as investors were spooked by the euro zone's move into recession and weak U.K. data.

Third-quarter gross domestic product for the 17-member euro zone fell 0.1% on the quarter, or 0.4% on an annualized basis, following a 0.7% annualized decline in the second quarter. Economists generally define a recession as two-consecutive quarters of contraction. U.K. retail sales slid 0.8% in October versus expectations of a 0.2% monthly decline.

Asian markets were mostly lower on the back of sharp weakness in the U.S., although Japanese stocks rallied amid hopes for further monetary stimulus. China's Shanghai Composite shed 1.2%, while Japan's Nikkei Stock Average rallied 1.9%.

Front-month crude-oil futures fell 1% to settle at $85.45 a barrel, while November gold futures eased 0.9% to settle at $1,713.30 a troy ounce. The dollar lost ground against the euro, but rallied against the yen. Yields on the benchmark 10-year U.S. Treasury bond fell to 1.588% as prices rose.

Diamond Foods skidded 21% after it said it swung to a loss for the first three quarters of fiscal 2012, as the snack food company completed a restatement of its financials required after an internal probe uncovered improper accounting of payments to walnut growers.

NetApp rallied 11% after the data-storage company reported better-than-expected fiscal second-quarter earnings and revenue and provided a somewhat upbeat earnings outlook for the current quarter.

Viacom rose 2.6% after the media giant reported better-than-expected fiscal fourth-quarter earnings, offsetting a slight shortfall in revenue.

DryShips slumped 20% after the dry bulk shipper reported a wider-than-expected third-quarter loss and revenue that missed forecasts.

Children's Place Retail Stores lost 14% after the company missed Wall Street estimates for its total sales.

Write to Alexandra Scaggs at alexandra.scaggs@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

React to this article
Latest news
Date Title
09:37p New Credit Suisse CEO promises 'ruthlessly selective' review
09:33p SANDRIDGE MISSISSIPPIAN I : IMPORTANT INVESTOR ALERT: Goldberg Law PC Reminds Investors With Losses Greater Than $100,000 In SandRidge Mississippian Trust I Of August 10, 2015 Deadline
09:25p SecureCom(tm) Mobile Inc. Grants Stock Options
09:20p NATIONAL FARMERS' FEDERATION OF AUSTRALIA : White Paper unveils major benefits for farm business
09:15p ICONIX BRAND : IMPORTANT INVESTOR ALERT: Goldberg Law PC Reminds Investors With Losses Greater Than $100,000 In Iconix Brand Group, Inc. Of August 24, 2015 Deadline
09:05p MCX MULTI COMMODITY EXCHANGE OF INDIA : Press Releases : inks MoU with Christ University
09:02p K+S rejects Potash Corp's takeover approach as too low
08:55p UNITED PARCEL SERVICE : BRIEF: UPS truck crashes onto a fairway in High Point
08:55p DUKE ENERGY : Power restored to all Duke Energy customers in Guilford County (UPDATE)
08:55p DNO ASA : Notification - Holding of Synthetic Shares
Latest news
Advertisement
Hot News 
DISTIL : Says Performing Well So Far, With Sales And Volume Growth
ATARI : Last E.T. cartridges up for sale on eBay
OUTSOURCERY : New Debt Facilities from Vodafone
UBISENSE : Hit By Contract Delays, To Restructure Operations
OPTION : Regulated information: financial update
Most Read News
06:01p MICROSOFT : Qorus Software is awarded Microsoft Silver Cloud Platform Competency
06:03p NATIONSTAR MORTGAGE : IMPORTANT INVESTOR ALERT: Goldberg Law PC Reminds Investors with Losses Greater Than $100,000 in Nationstar Mortgage Holdings Inc. of August 3, 2015 Deadline
06:03p HUSKY ENERGY : Undertaking Maintenance at Lloydminster Upgrader
06:49p VECTREN : work in New Albany at halfway point for 2015
06:05p SUBARU : Motorcyclist killed in Midtown Anchorage crash
Most recommended articles
09:37p New Credit Suisse CEO promises 'ruthlessly selective' review
09:02p K+S rejects Potash Corp's takeover approach as too low
08:15p What to Expect From the Greek Referendum
07:39p Toshiba accounting errors may be over $1 billion - report
07:08p UK private-sector growth falls to six-month low in June - CBI