U.S. stocks tumble from record highs
0 Comment(s)
Print
E-mail Xinhua, April 4, 2013
Wall Street retreated Wednesday on disappointing economic data, after both the Dow Jones Industrial Average Index and S&P 500 closed at all-time highs on Tuesday.
The blue-chip Dow plummeted 111.66 points, or 0.76 percent, to 14,550.35. The broad-based Standard & Poor's 500-stock Index plunged 16.56 points, or 1.05 percent, to 1,553.69. The tech-heavy Nasdaq Composite Index sank 36.26 points, or 1.11 percent, to 3, 218.60.
The three indices notched the biggest losses since Feb. 25.
The market opened slightly higher, despite a general slip in equity markets outside the United States and the downbeat U.S. jobs data.
U.S. private sector added 158,000 jobs in March on a seasonally- adjusted basis, down from the revised figure of 237,000 a month earlier, according to a report produced by Automatic Data Processing (ADP) in collaboration with Moody's Analytics. The figure fell far short of analysts' consensus.
The market was also keeping an eye on the Labor Department's report on the U.S. non-farm payrolls and unemployment rate data in March scheduled to be released on Friday.
Wall Street accelerated its losses after the release of a lower- than-expected non-manufacturing Purchasing Managers' Index for the United States. The index registered 54.4 in March, lower than February's reading of 56, the Institute of Supply Management reported Wednesday. The data indicated a slightly slower growth in the services sector.
Among other economic data, mortgage applications decreased 4.0 percent for the week ending March 29 from a week earlier, according to the Mortgage Bankers Association Wednesday.
All the 10 sectors in S&P 500 fell, with financials and energy lagging.
In corporate news, U.S.-listed shares of Britain telecommunications company Vodafone dipped 4.44 percent to 28.10 U. S. dollars after Verizon Communications said it currently didn't have any intention to merge with or buy Vodafone. While Verizon shares fell 1.03 percent to 48.99 dollars.
Bank of America shares slipped 2.80 percent to 11.81 dollars after the bank had reportedly agreed to pay 165 million dollars to settle a case over purchased mortgage-backed securities with the National Credit Union Administration.
Monsanto shares advanced 0.85 percent to 104.51 dollars after the agricultural chemicals maker raised its full-year profit forecast.
On other markets, the U.S. dollar retreated against major currencies as weak economic data weighed on the greenback. Meanwhile, the yen strengthened versus major currencies after the Bank of Japan began a two-day policy meeting on Wednesday. It is the first policy meeting for the new governor Haruhiko Kuroda.
In late New York trading, the euro climbed to 1.2846 dollars from 1.2814 dollars of the previous session and the British pound rose to 1.5143 dollars from 1.5107 dollars. The Australian dollar increased to 1.0463 dollars from 1.0448 dollars. The dollar bought 92.87 Japanese yen, lower than 93.37 in the previous session.
Oil prices fell sharply on Wednesday, as the oil stockpiles of the United States climbed to the highest level in more than 22 years.
Crude inventories rose 2.71 million barrels to 388.6 million last week, the highest level since 1990, the Energy Information Administration said.
Light, sweet crude for May delivery fell 2.74 dollars, or 2.81 percent to settle at 94.45 dollars a barrel on the New York Mercantile Exchange. Brent crude for May delivery was down 3.58 dollars, or 3.2 percent to close at 107.11 dollars a barrel.
Go to Forum >>0 Comment(s)