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U.S. stocks steady after data, eyes on euro zone; Dow Jones up 0.09%

Published 09/19/2012, 09:50 AM
Updated 09/19/2012, 09:51 AM
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Investing.com - U.S. stocks were steady on Wednesday, as news of fresh easing measures by the Bank of Japan lent mild support to market sentiment, while concerns over the handling of the euro zone's debt crisis limited gains.

During early U.S. trade, the Dow Jones Industrial Average added 0.09%, the S&P 500 index dipped 0.04%, while the Nasdaq Composite index inched 0.08% lower.

The BoJ said earlier that it was boosting the size of its asset-purchase program by JPY10 trillion, in an effort to boost slowing economic activity and to counter the strengthening yen.

But markets were jittery amid reports several German lawmakers are seeking to water down proposals for a European banking union and supervision of euro zone banks by the European Central Bank.

Investors were also cautious following news Spanish Prime Minister Mariano Rajoy is uncertain about asking for help from the European Central Bank's new bond-purchasing program.

Microsoft edged down 0.08% after raising its dividend by 15% on Tuesday, marking a slowdown in the growth in payouts to investors after a year marked by a downturn in computer sales and a large write-off for a failed acquisition.

Also in the tech sector, Apple lost 0.14% after the iPhone maker and four major publishers offered to let retailers such as Amazon sell e-books at a discount for two years to end a European Union antitrust investigation, according to the European Commission. Shares in Amazon rose 0.15% following the news.

3M added to losses, as shares dropped 0.58% after the industrial conglomerate became the latest major company to caution about the economic outlook, saying its initial 7 to 8% revenue growth forecast is now a "stretch target."

On the upside, General Mills climbed 1.70% after the food producer reported better-than-expected earnings and stood by its full-year guidance.

Wal-Mart and health care insurer Humana also gained ground, with shares rising 0.18% and 0.32% respectively, after the two companies said they will join efforts to trim the cost of healthy foods for more than 1 million customers.

In the financial sector, stocks were mixed, as Bank of America climbed 0.54% and Citigroup added 0.24%, while JP Morgan and Goldman Sachs slipped 0.12% and 0.12%.

Goldman Sachs announced late on Tuesday that senior trading executive Harvey Schwartz would take over as CFO, replacing David Viniar, who will be joining the company's board as non-independent director.

Across the Atlantic, European stock markets were little changed. The EURO STOXX 50 eased up 0.04%, France’s CAC 40 dipped 0.05%, Germany's DAX added 0.15%, while Britain's FTSE 100 slipped 0.01%.

During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.16%, while Japan’s Nikkei 225 Index climbed 1.19%.

Also Wednesday, government data showed that U.S. housing starts rose by 2.3% in August to a seasonally adjusted 0.750 million, below expectations for a 2.85 increase to 0.765 million.

The number of building permits issued in August fell 1% to a seasonally adjusted 0.803 million, compared to expectations for a decline of 1.8% to 0.796 million.


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