Wall Street pulls back after Dow's 10-session gains
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E-mail Xinhua, March 16, 2013
U.S. stocks traded lower on Friday on disappointing consumer sentiment, as investors found an excuse to sell off after the Dow Jones Industrial Average scored a 10-session winning streak not seen since November 1996.
The main stock indices opened lower, and then accelerated to drop after a joint survey by Thomson Reuters and the University of Michigan showed that the preliminary reading of the U.S. consumer- sentiment index in March dropped to 71.8, the lowest level since December 2011.
Other economic data released on Friday were mixed. The Empire State Manufacturing Index in March stood at 9.2, slightly lower than 10.0 in February, turning positive for a second straight month, the Federal Reserve Bank of New York reported Friday.
The U.S. Consumer Price Index increased 0.7 percent in February, more than expected, the Commerce Department said Friday. However, the core CPI, excluding food and energy components, increased 0.2 percent, in line with projections.
Besides, industrial production for the United States grew 0.7 percent in February, according to the Federal Reserve, beating market estimates.
Financial stocks performed in varied ways, one day after the Fed announced it had approved the capital plans of 14 financial institutions in the Comprehensive Capital Analysis and Review. Two other institutions received conditional approval, while the Fed objected to the plans of two firms.
Shares of Bank of America surged after the bank announced that it would buy back up to 5-billion-U.S.-dollar common stock.
Goldman Sachs shares reversed early losses to trade in green territory as the Fed required the investment bank to submit new plans to address weaknesses in its capital planning process.
Shares of J.P Morgan Chase dipped as the bank giant's former executive Ina Drew testified on Friday before a Senate panel on the 6-billion-dollar "London Whale" trading loss last year.
In midday trading, the blue-chip Dow fell 31.95 points, or 0.22 percent, to 14,507.19. The broader Standard & Poor's 500-stock Index shed 2.01 points, or 0.13 percent, to 1,561.22. The tech- heavy Nasdaq Composite Index gave up 6.93 points, or 0.21 percent, to 3,252.00. Endi
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