Breaking News
0

U.S. stocks lower on FOMC bullish let down; Dow slips 0.25%

Stock MarketsJul 12, 2012 04:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Investing.com - U.S. stocks closed down Thursday, although off the lows, as disappointing U.S. employment data fueled fresh concerns over the strength of the domestic economic recovery, while the Federal Reserve dampened expectations for further stimulus measures in the near future.

At the close of U.S. trade, the Dow Jones Industrial Average dropped 0.25%, the S&P 500 index slipped 0.50% while the Nasdaq Composite index gave back 0.75%.

Official data Indicated that the number of people who filed for unemployment assistance in the U.S. last week fell significantly more-than-expected, matching the lowest level in four years.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending July 7 fell to a seasonally adjusted 350,000, compared to expectations for a decline to 372,000.

The data came after the Fed said in the minutes of its June policy meeting that the U.S. economy would have to worsen further before the central bank implements additional easing measures.

Market sentiment also remained under pressure after the European Central Bank’s monthly bulletin reiterated that downside risks have materialized and that growth in the region will remain weak.

Financial stocks were broadly lower, as U.S. lenders tracked their European counterparts. Bank of America saw shares tumble 1.57% and Citigroup dropped 1.16%, while JP Morgan and Goldman Sachs declined 1.01% and 0.80% respectively.

Energy stocks also contributed to losses, as oil prices tumbled over 1%. Exxon Mobil dropped 0.53% and EOG Resources plunged 2.41%.  

Earlier in the day, Centrica, which owns British Gas, said it agreed to buy two New York-based power providers from a U.S. subsidiary of Iberdrola for USD110.2 million in cash to strengthen its position and increase its customer base in the U.S. Northeast.  

Elsewhere in corporate news, U.S. insurer Cigna retreated 1.02% after saying it agreed to buy a 51% stake in Finansbank's wholly owned insurance unit Finans Emeklilik for USD104 million.

In the tech sector, Apple shares dropped 0.45%, amid reports sellers of the company’s next-generation iPhone on China's largest e-commerce platform, Taobao, were accepting pre-orders of the device, which hasn’t been released yet. 

On the upside, pharmaceutical giant Merck & Co. surged 4.34% after announcing that the trial of an advanced clinical study of an osteoporosis treatment met primary efficacy goals, leading the study’s data-monitoring committee to recommend ending the trial earlier than scheduled.

 At the close of  European  trade, the EURO STOXX 50 dropped 0.81%, France’s CAC 40 declined 0.70%, while Germany’s DAX 30 retreated 0.53%.

In other news Thursday, official data showed that U.S. import prices fell significantly more-than-expected in June, dropping by 2.7% in June, compared to expectations for a 1.7% decline.

On Friday, investors are anticipating the Michigan sentiment numbers and the core PPI from the U.S..




 
U.S. stocks lower on FOMC bullish let down; Dow slips 0.25%
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email