Investing.com - U.S. stocks fell on Wednesday as markets
continued to sell technology and small-cap stocks on sentiment that
monetary stimulus tools are on their way out, while investors
jumped to the sidelines to await fresh data on hopes the numberw
will indicate if the effects of a rough winter are over.
At the close of U.S. trading, the Dow 30 fell 0.61%, the S&P
500 index fell 0.47%, while the NASDAQ Composite index fell
On Thursday, the U.S. is to release data on initial jobless
claims, consumer inflation, industrial production as well as a
report on manufacturing activity in the Philadelphia region.
Investors hope the flurry of numbers will shed light on whether
a more robut albeit a still stop-and-go recovery is due to a rough
winter or true slowdown in demand.
Uncertainty ahead of time kept many on the sidelines despite
upbeat wholesale pricing data.
The Commerce Department reported earlier that producer prices
increased by 0.6% last month, beating forecasts for a 0.2% gain,
after rising 0.5% in March.
Year-over-year, the producer price index rose 2.1% in April,
beating expectations for a 1.7% increase and up from 1.4% in the
The core producer price index advanced 0.5% last month, compared
to expectations for a 0.2% increase, after rising 0.6% in
Core produces prices rose at an annualized rate of 1.9% in
April, beating forecasts for a 1.4% gain and after climbing 1.4% in
the preceding month.
The Federal Reserve views core prices as a better gauge of
longer-term inflationary pressure because they exclude the volatile
food and energy categories.
Elsewhere, investors continued to sell technology and small-cap
equities, the beneficiaries of exceptionally loose monetary
policies since the 2008 downtown.
The Federal Reserve is expected to wind up its monthly
bond-buying program later this year.
Fed asset purchases boost stock prices by suppressing long-term
interest rates, and investors sold stocks deemed frothy due to
Leading Dow Jones Industrial Average performers included Merck
& Company Inc (NYSE:MRK), up 1.10%, AT&T Inc (NYSE:T), up
0.54%, and Chevron Corporation (NYSE:CVX), up 0.45%.
The Dow Jones Industrial Average's worst performers included
International Business Machines (NYSE:IBM), down 1.83%, Walt Disney
Company (NYSE:DIS), down 1.41%, and Nike Inc (NYSE:NKE), down
European indices, meanwhile, largely lower.
After the close of European trade, the DJ Euro Stoxx 50 fell
0.06%, France's CAC 40 fell 0.09%, while Germany's DAX fell 0.03%.
Meanwhile, in the U.K. the FTSE 100 rose 0.08%.
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