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 Pull Back for Second Day; Fed and Euro Zone Concerns Weigh

02/21/2013 | 04:43pm US/Eastern

--Stocks pull back for a second straight day; eight of 10 S&P sectors trade lower

--Philadelphia Fed reports a surprise contraction in area manufacturing, European worries weigh

--DJIA declines 46.92; S&P loses 9.53

   By Alexandra Scaggs 

NEW YORK--Major benchmarks posted a second consecutive day of broad declines Thursday, after a pair of sour U.S. economic readings piled on top of investor worries about the possibility of an earlier-than-expected end to central-bank stimulus.

The Dow Jones Industrial Average fell 46.92 points, or 0.3%, to 13880.62. The Standard & Poor's 500-stock index gave up 9.53 points, or 0.6%, to 1502.42. Eight of its 10 sectors lost ground, with the biggest pullback in growth-sensitive technology and materials shares. The tech-heavy Nasdaq Composite Index lost 32.92 points, or 1%, to 3131.49.

The Dow industrials' declines came after their second-biggest drop of the year Wednesday. Investors were jarred by the potential for an earlier-than-expected end to the Federal Reserve's bond-buying programs, known as quantitative easing.

Easing "has been the source of a significant boost for the equity markets," said Natalie Trunow, chief investment officer for equities with Calvert Investments, which oversees $12 billion. "The follow-through [selling] today was on the realization that there is an end to it at some point."

The Philadelphia Federal Reserve's February index of business activity, an indicator of business conditions for manufacturers in the region, posted a surprise decline to -12.5, while a positive reading had been expected.

"The fact that we are seeing evidence of a continuing slowdown in the manufacturing sector is a bit concerning," said Jim Baird, chief investment strategist for Plante Moran Financial Advisors, which manages $7.2 billion in assets.

Separately, initial claims for unemployment benefits rose to 362,000 in the latest week, a higher figure than expected. The consumer price index for January was unchanged on the month, but increased by 0.3% excluding volatile food and energy costs. Sales of existing homes for January showed a slight increase, but were mostly in line with expectations.

Wal-Mart gained 1.5% after the blue-chip discount retailer reported earnings that exceeded analysts' estimates, helping to offset a first-quarter earnings outlook that was below analyst projections.

The Stoxx Europe 600 fell 1.5% in response to disappointing economic news for the euro zone. Markit's preliminary index measuring service and manufacturing activity for the currency bloc fell to 47.3 in February, below expectations of 48.5. Readings below 50 indicate contraction. Within the euro zone, Italy's FTSE MIB skidded 3.1% and Germany's DAX slid 1.9%.

The weak data sent the euro down to a six-week low against the dollar. Meanwhile, the dollar sank against the yen.

Asian markets also suffered steep declines, highlighted by a 3% tumble in China's Shanghai Composite, the biggest percentage decline seen since November 2011. Exacerbating worries about the Fed easing up on its stimulus program, China's State Council said Wednesday that it would continue with market controls to curb increases in property prices.

Japan's Nikkei Stock Average shed 1.4% and Australia's S&P ASX 200 dropped 2.3%.

Front-month gold futures for February delivery were mostly flat, settling at $1578.20 a troy ounce. Front-month crude-oil futures for April delivery lost 2.5% to settle at $92.84 a barrel. Yields on the benchmark 10-year U.S. Treasury note fell to settle at 1.977% as prices rose.

In corporate news, Tesla Motors skidded 8.8% after the electric-car maker reported a wider-than-anticipated fourth-quarter loss and revenue that rose less than expected. Gross margin narrowed sharply.

Apple pulled back 0.6%. It retreated well off its session lows after Greenlight Capital founder David Einhorn detailed a plan for the technology company to return more cash to shareholders, a move he has been pressing the company to make in recent weeks.

Carlyle Group slumped 7.8% after it missed analyst estimates for its earnings and revenue. The private-equity company recorded lower performance fees and recorded an investment loss.

VeriFone Systems tumbled 43% after the electronic-payments company indicated that fiscal first-quarter earnings and revenue would fall well short of expectations, citing weak economic conditions in Europe and delayed projects from several major customers. It also provided a downbeat outlook for the current quarter.

Hormel Foods rose 1.1% after the company reported fiscal first-quarter earnings and revenue in line with analyst estimates, and raised its full-year earnings outlook to reflect the benefit of buying the Skippy peanut-butter business last month.

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

React to this article
Latest news
Date Title
06:04a GREAT BASIN SCIENTIFIC : Other Events (form 8-K)
06:04a FIRST FINANCIAL NORTHWEST : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K/A)
06:04a CANAM : Enterprises Reaches Another Milestone with More Than 1,500 I-829 Petition Approvals
06:03a READING : Other Events, Financial Statements and Exhibits (form 8-K)
06:03a COMPUTER SCIENCES : Regulation FD Disclosure, Other Events, Financial Statements and Exhibits (form 8-K)
06:03a CAESARS ENTERTAINMENT : Regulation FD Disclosure (form 8-K)
06:03a BIOGEN : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)
06:03a SEQUOIA ECONOMIC INFRASTRCTR INCM FD : Infrastructure Income Fund Intends To Raise Capital (ALLISS)
06:03a BERKELEY ENERGY : Gets Zona 7 Drilling Results In Line With Expectations
06:03a MedRisk CE Webinar Introduces Attendees to Musculoskeletal Injuries/Fractures
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Release concerning the disclosure of the financial information concerning the first half of 2015
HAVELOCK EUROPA : Issues Profit Warning Amid Restructuring Plans
SNOOZEBOX : Loss Widens On Investments, But Sales Grow Strongly
LATCHWAYS : MSA : Safety Incorporated to Acquire Latchways plc
ENTU UK : Issues Profit Warning As It Decides To Shut Down Solar Division
Most Read News
08/31 SofTech Announces Q4 and FY 2015 Operating Results
08/31 FHLBank San Francisco Releases July 2015 Cost of Funds Index
08/31 KWANG SUNG ELECTRONICS H K : Appointment of Executive Director and Grant of Share Option
08/31 Fitch Maintains Freescale on Watch Positive Ahead of Merger with NXP
08/31 SILVER BULLION TRUST : Issues Letter to Unitholders
Most recommended articles
05:55aDJMigrants Protest as Hungary Closes Main Station to North Europe
05:55a CRUDE OIL PRICE : Sharp Upward Surge Unlikely to Last
05:48a Merkel says Europe has not yet managed to overcome crisis
05:48aDJOil Prices Pull Back on New China Worries--Update
05:45aDJDEALING WITH THE 'DADDY TRACK' : Men Face Challenges Going Part Time