By Dow Jones Business News, September 27, 2013, 10:26:00 AM EDT
--Stock futures fall; indexes look to cap weekly loss
--S&P 500, Dow head for first weekly loss in four weeks
--J.C. Penney falls after offering; Nike gains on earnings
By Matt Jarzemsky
U.S. stocks declined Friday morning, extending the first weekly loss since August for the Dow industrials, despite a
reading on rising consumer-spending data and upbeat results from Nike.
The Dow Jones Industrial Average dropped 68 points, or 0.4%, to 15262 in the minutes after the opening bell.
The S&P 500 index declined eight points, or 0.5%, to 1691. The Nasdaq Composite Index fell 20 points, or 0.5%, to
Nike, which became a Dow component this week, rose 6.3% after the company reported late Thursday better-than-expected
fiscal first-quarter earnings, boosted by strong sales growth in the U.S. and Europe and wider gross margins.
J.C. Penney slid 11% after the troubled retailer agreed to sell 84 million shares late Thursday. The offering priced
at $9.65 a share, 7.4% below Thursday's closing price.
Americans' personal spending on items ranging from cars to health care rose 0.4% in August from a month earlier, the
Commerce Department reported, while incomes increased 0.3%. The gains were in line with economists' forecasts.
But increased tension in Washington on budget and debt-ceiling talks have weighed on investor sentiment over the last
week. House Speaker John Boehner said Thursday the House would not accept a short-term spending bill likely to be
approved by the Senate on Friday, which would help avoid a partial government shutdown starting Oct. 1.
"The market has obviously had a fantastic move on a year-to-date basis," said Eric Wiegand, senior portfolio manager
at U.S. Bank Wealth Management, which oversees $112 billion. "While we're of the opinion that valuation is still
reasonable. A little bit of pause in front of all the news flow makes a great deal of sense."
Mr. Wiegand remains optimistic about U.S. stocks, but has been investing more of clients' money this year in "hedged"
funds that can bet against stocks falling as well as rising. He said international stocks have been offering better
relative value of late.
After the open, the final reading of the Thomson-Reuters/University of Michigan consumer sentiment index for September
was revised up to 77.5, versus expectations of 78, from a preliminary reading of 76.8. The final August reading was
At 2 p.m. EDT, New York Federal Reserve President William Dudley will give a speech on the economy at Syracuse
The yield on the 10-year Treasury note slipped to 2.629% from 2.643% late Thursday. Yields move inversely to prices.
November crude-oil futures lost 0.1% to $102.97 a barrel. Like stocks, crude prices snapped a five-session losing
streak on Thursday. October gold futures advanced 1.1% to $1,338.50 an ounce. The dollar declined against both the yen
and the euro.
European markets were broadly lower, with the Stoxx Europe 600 down 0.5%, as worries over U.S. budget talks offset
encouraging confidence data. The Economic Sentiment Indicator for September rose to a two-year high of 96.9 from 95.3 in
August, topping expectations of 96. Meanwhile, the business climate index improved slightly from last month, but
remained negative and was below expectations.
Asian markets were mostly higher, following strength in the U.S. the previous session. China's Shanghai Composite rose
0.2% and Australia's S&P ASX 200 gained 0.2% to a five-year high. Japanese stocks bucked the regional trend, with the
Nikkei Stock Average slipping 0.3% as yen strength hit exporter shares.
Blackberry rose 1.3%. The smartphone maker reported fiscal second-quarter losses and revenue that were in line with
the sharply reduced outlook it provided last week. Earlier this week, the company agreed to be taken private by one of
its biggest shareholders for $4.7 billion.
Write to Matt Jarzemsky at email@example.com
(END) Dow Jones Newswires
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