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U.S. stocks fall on data, growth fears; Dow Jones down 0.28%

Published 09/20/2012, 09:46 AM
Updated 09/20/2012, 09:47 AM
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Investing.com - U.S. stocks opened lower on Thursday, as disappointing U.S. data added to concerns over the outlook for global economic growth, following the release of weak economic reports from the euro zone and China.

During early U.S. trade, the Dow Jones Industrial Average fell 0.28%, the S&P 500 index dropped 0.51%, while the Nasdaq Composite index declined 0.57%.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 15 fell by 3,000 to a seasonally adjusted 382,000, compared to expectations for a decrease of 10,000 to 375,000.

The previous week’s figure was revised up to 385,000 from a previously reported 382,000.

Market sentiment had weakened broadly earlier, after preliminary data showed that the euro zone’s manufacturing purchasing manufacturers' index rose more-than-expected in September, while service sector activity fell unexpectedly.

Earlier in the day, data showed that China’s HSBC Flash Purchasing Managers Index remained in contraction territory for the 11th consecutive month, adding to fears over a further slowdown in the region’s largest economy.

Financial stocks were broadly lower as U.S. lenders tracked their European counterparts' performances and after UBS downgraded Morgan Stanley, Goldman Sachs and Citigroup to "neutral" from "buy."

As the U.S. session opened, JP Morgan tumbled 1.57% and Goldman Sachs declined 1.42%, while Citigroup and Morgan Stanley plunged 2.02% and 3.98% respectively.

Separately, Bank of America, whose shares were plummeted 1.72%, was reportedly planning to cut 16,000 jobs by year end and speeding up a company-wide cost-cutting initiative amid declining revenues.

On the upside, Adobe Systems climbed 0.88%, even as it said current-quarter earnings will decline or remain flat as customers take to the company's new subscription-based model faster than expected.

Among earnings, ConAgra Foods surged 5.46% after the packaged-food maker reported higher-than-expected earnings and boosted its full-year forecast.

Home-merchandise retailer Bed Bath & Beyond dove 7.56% on the other hand, as it missed earnings expectations and posted same-store sales growth that slowed.

Other stocks in focus included Oracle, due to report earnings after the closing bell.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 0.98%, France’s CAC 40 dropped 0.92%, Germany's DAX declined 0.53%, while Britain's FTSE 100 retreated 0.87%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.2%, while Japan’s Nikkei 225 Index plummeted 1.57%.

Later in the day, the U.S. was to release an index of manufacturing activity in Philadelphia.


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