Investing.com - U.S. stocks ended Wednesday’s session lower on weaker than expected durable goods orders and slumping energy shares due to falling oil prices
Near the close of U.S. trade, the Dow Jones Industrial Average gave back 0.54%, the S&P 500 fell 0.49%, while the Nasdaq Composite dropped 0.49%.
The selling was started as the Commerce Department reported durable goods orders increased 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase, further adding to the equity bearish environment.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The information was released one day after Federal Reserve Chairman Ben Bernanke stated that it was still too early to declare victory in the U.S. economic recovery, spurring speculation that the central bank may initiate a third round of monetary easing to support growth.
Meanwhile in the euro zone, Euro zone finance ministers are expected to increase Europe’s bail out funds to between EUR700 billion and EUR900 billion at a meeting in Copenhagen on March 30th.
Even German Chancellor, Angela Merkel has signaled that she is prepared to allow an increase in the “firewall” as Portugal and Spain show weakness.
However, ECB Governing Council member, Jens Weidman made clear his opposition to increasing the funds in a talk at the Chatham House in London earlier today.
Weidman stated, “Just like the tower of Babel, the ‘Wall of Money’ will never reach heaven. If we continue to make it higher and higher, we will, in fact, run into more worldly constraints which might include setting incentives that lead to new problems in the future.”
In other U.S. news, the EIA said in its weekly report that U.S. crude oil inventories surged by 7.1 million barrels in the week ended March 23, significantly higher than expectations for a 2.5 million barrel increase.
U.S. crude supplies fell by 1.2 million barrels in the preceding week, weighing on energy shares.
Alpha Resources fell 4.7% and Peabody Energy gave back 4 % as coal producers were hit as U.S electricity generators are on track to burn 22% less coal this year per the Coal & Energy Price Report.
Amylin Pharmaceuticals surged 46% after rejecting a Bristol Myer’s takeover bid.
Annie’s rocketed 85% on the first day of trading, as the organic food company, met with strong investor demand.
At the close of European trade, the EURO STOXX 50 traded down 1.13%, France's CAC 40 fell 1.14%, while Germany’s DAX traded lower by 1.13. Meanwhile, in the U.K. the FTSE 100 gave back 1.03%
Investors are awaiting U.S. GDP and initial jobless claims as well as German unemployment change on Thursday.
Near the close of U.S. trade, the Dow Jones Industrial Average gave back 0.54%, the S&P 500 fell 0.49%, while the Nasdaq Composite dropped 0.49%.
The selling was started as the Commerce Department reported durable goods orders increased 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase, further adding to the equity bearish environment.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The information was released one day after Federal Reserve Chairman Ben Bernanke stated that it was still too early to declare victory in the U.S. economic recovery, spurring speculation that the central bank may initiate a third round of monetary easing to support growth.
Meanwhile in the euro zone, Euro zone finance ministers are expected to increase Europe’s bail out funds to between EUR700 billion and EUR900 billion at a meeting in Copenhagen on March 30th.
Even German Chancellor, Angela Merkel has signaled that she is prepared to allow an increase in the “firewall” as Portugal and Spain show weakness.
However, ECB Governing Council member, Jens Weidman made clear his opposition to increasing the funds in a talk at the Chatham House in London earlier today.
Weidman stated, “Just like the tower of Babel, the ‘Wall of Money’ will never reach heaven. If we continue to make it higher and higher, we will, in fact, run into more worldly constraints which might include setting incentives that lead to new problems in the future.”
In other U.S. news, the EIA said in its weekly report that U.S. crude oil inventories surged by 7.1 million barrels in the week ended March 23, significantly higher than expectations for a 2.5 million barrel increase.
U.S. crude supplies fell by 1.2 million barrels in the preceding week, weighing on energy shares.
Alpha Resources fell 4.7% and Peabody Energy gave back 4 % as coal producers were hit as U.S electricity generators are on track to burn 22% less coal this year per the Coal & Energy Price Report.
Amylin Pharmaceuticals surged 46% after rejecting a Bristol Myer’s takeover bid.
Annie’s rocketed 85% on the first day of trading, as the organic food company, met with strong investor demand.
At the close of European trade, the EURO STOXX 50 traded down 1.13%, France's CAC 40 fell 1.14%, while Germany’s DAX traded lower by 1.13. Meanwhile, in the U.K. the FTSE 100 gave back 1.03%
Investors are awaiting U.S. GDP and initial jobless claims as well as German unemployment change on Thursday.