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U.S. stocks mixed on retail sales, Apple drops; Dow up 0.56%

Published 04/16/2012, 04:29 PM
Updated 04/16/2012, 04:31 PM
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Investing.com - U.S. stocks traded mixed Monday, as better than expected retail sales sparked equity optimism despite high tech king pin, Apple, dropping for the fifth straight session.

At the close of U.S. trade, the Dow Jones Industrial Average added 0.56%, the S&P 500 gave back 0.05%, while the Nasdaq Composite fell 0.76%.  

Helping boost stock sentiment, data indicated retail sales in the U.S. increased more-than-expected in March, building on the previous month’s strong gain. 

The U.S. Commerce Department reported retail sales climbed by a seasonally adjusted 0.8% in March, beating expectations for a modest 0.3% gain.

February’s figure was revised to a 1.0% increase from a previously reported gain of 1.1%.

Core retail sales, which exclude automobile sales, rose by 0.8% last month, above expectations for a 0.6% gain, after rising by 0.9% in February.

However, a separate report showed that an index of manufacturing conditions in New York deteriorated in April, growing at the slowest pace since November dampening equity enthusiasm.


The Federal Reserve Bank of New York said that its general business conditions index declined by 13.6 points to 6.6 in April from 20.2 in March. Analysts had expected the index to decline by 2.2 points to 18.0 in April.

Meanwhile, global fears over increasing Spanish borrowing costs weighed on risk appetite.

 Spanish sovereign debt against default climbed to a fresh record earlier, amid fears that the country will be the next euro zone member to require a bailout.

Spanish 10-year yields rose above the key 6.0%-level in early trade Monday, striking 6.15%, the highest since December 1. Similar-maturity Italian yields increased to 5.66%, while Portuguese yields rocketed to 12.73%.

In addition, subduing market sentiment were Chinese growth figures released on Friday, indicating that the Chinese economy grew at the slowest pace in almost three years in the first quarter.

China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

A deeper slowdown in China may impair a global expansion that is already weakening because of the implementation of harsh austerity measures in Europe.

Apple gave back 3.1%, falling for the fifth straight day and weighing on the Nasdaq index, on speculation that iPad demand is waning and carriers may cut subsidies for the iPhone.

Caterpillar gained 1.4% as the construction equipment maker was upgraded to buy at Bank of America.

Citigroup advanced 2.5% upon announcing first quarter trading revenue increased from the fourth quarter.

At the close of European trade, the EURO STOXX 50 gained 0.42%, France's CAC 40 advanced 0.51%, while Germany’s DAX added 0.63%.  Meanwhile, in the U.K. the FTSE 100 gained 0.26%.

Traders are anticipating the German ZEW sentiment numbers, the Canadian interest rate decision, and a speech by ECB president Draghi on Tuesday.


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