Stocks closed sharply lower after largely bullish economic data
kept worries over the timing of the Federal Reserve starting to
taper its massive bond-buying stimulus programs. The
larger-than-expected drop in new jobless claims and other economic
reports also pushed Treasury yields to two-year highs this morning,
and while yields drifted lower as the session progressed, the
equity markets ended near their worst levels of the day.
In addition to the larger-than-expected 15,000 drop in
first-time unemployment claims during the week ended Aug. 10, two
separate studies of manufacturing activity in New York,
Pennsylvania and parts of their surrounding states declined less
than most market experts were expecting, convincing traders the
Federal Reserve will announce a slow-down in its bond-buying
program at the next Federal Open Markets Committee meeting in
Disappointing earnings from Wal-Mart (
) and Cisco (
) also had a negative impact, sparking worries consumers are still
struggling keeping pace with necessary purchases, much less than
more discretionary spending,
Commodities finished higher as traders rotated into other asset
classes, lifting shares of mining stocks and limiting declines for
shares of energy companies. Crude oil for September delivery
settled 48 cents higher at $107.33 per barrel. September natural
gas was up 8 cents at $3.42 per 1 million BTU. December gold
settled $26.60 higher at $1,359.70 per ounce while September silver
rose $1.13 to $22.91 per ounce. September copper was unchanged at
$3.34 per pound.
Here's where the U.S. stood at end-of-day:
Dow Industrials down 225.47 (-1.47%) to 15,112.19
S&P 500 down 24.07 (-1.43%) to 1,661.32
Nasdaq Composite down 63.16 (-1.72%) to 3,606.12
Hang Seng Index down 0.01%
Shanghai China Composite Index down 0.87%
FTSE 100 Index down 1.58%
(+) MMLP, Forms new partnership with Alinda Capital Partners,
with Alinda taking a 49% voting stake in the new entity. Shares
also pick up support from Raymond James upgrade.
(+) CCCR, Extends post-IPO rally to a second day, adding to
yesterday's 91.5% gain for the Chinese microlender.
(+) BIOL, Reverses 34% decline yesterday after CEO refutes
rumors the medical-laser company was facing a cash crunch, slashing
the size of a proposed stock offering by 83% from $30 million to
just $5 million.
(-) MPW, Prices public offering of 10 mln shares at $12.75 each.
It also is planning a $150-mln offering of senior notes due 2022,
with proceeds used to fund the purchase of three acute-care
hospitals from IASIS Healthcare.
(-) CSCO, Adjusted Q4 EPS of $0.52 beats by $0.01. Matches
analyst estimates for revenue with 6.2% year over year rise to
$12.4 billion but failing to meet the most optimistic expectations
looking for 8% growth. Firm also said it will cut workforce by
4,000 jobs, or 5%.
(-) WMT, World's largest retailer lowers its FY13 outlook; Q2
same-store sales slide 0.3%
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