Investing.com - U.S. stock markets were little changed after the open on Thursday, as investors digested a flurry of mostly disappointing U.S. economic data, amid concerns over the U.S. economic outlook.
Disappointing corporate earnings from U.S. retail giant Wal-Mart further weighed on appetite for riskier assets.
During early U.S. trade, the Dow Jones Industrial Average was flat, the S&P 500 index inched up 0.1%, while the Nasdaq Composite index rose 0.1%.
Concerns over the U.S. economic outlook resurfaced after official data showed that the number of individuals filing for initial jobless benefits in the week ending November 10 rose by 78,000 to a seasonally adjusted 439,000, compared to expectations for an increase of 14,000 to 375,000.
Continuing jobless claims in the week ended November 3 rose to 3.334 million, the highest level since July 2008. Analysts had expected continuing claims to rise to 3.210 million from last week’s revised figure of 3.163 million.
In addition, data showed that consumer price inflation in the U.S. rose in line with expectations in October, while prices excluding food and energy costs increased more-than-expected.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions improved unexpectedly in November, but remained in contraction territory for the fourth consecutive month.
The disappointing data added to expectations the Federal Reserve will keep its loose monetary policy intact.
The Fed indicated in the minutes of its October policy meeting published Wednesday that it may need to expand its monthly purchases of bonds next year, after the expiration of a program to extend the maturities of assets on its balance sheet, known as Operation Twist.
The discussion indicates that Fed officials judge the economy still needs record stimulus to reduce an unemployment rate stuck near 8%.
Investors also remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before the January 1 deadline.
President Barack Obama is set to meet with congressional leaders on Friday to discuss the country’s fiscal situation.
In earnings news, retail giant Wal-Mart saw shares tumble 4.5% after reporting third quarter revenue of USD113.2 billion, missing expectations for sales of USD114 billion. "Current macroeconomic conditions continue to pressure our customers," the company said.
Target shares slumped 0.5% after announcing a net profit of USD637 million for the third quarter. Quarterly revenue reached USD16.93 billion, in line with expectations.
On the upside, NetApp shares rallied 10.6% after reporting better-than-expected quarterly earnings after markets closed Wednesday.
Across the Atlantic, European stock markets were mildly lower. The EURO STOXX 50 was flat, France’s CAC 40 slid 0.15%, Germany's DAX retreated 0.45%, while Britain's FTSE 100 dropped 0.3%.
In the euro zone, official data released earlier showed that the region’s economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Year-on-year, euro zone gross domestic product fell 0.6% compared to a year earlier after contracting at a rate of 0.5% in the previous quarter.
The data came after reports showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter from a 0.3% increase in the previous quarter, while France's economy’s expanded 0.2%, following contraction of 0.1% in the previous quarter.
Data also showed Spain's economy contracted 0.3%, while Italy’s economy shrank 0.2% in the third quarter.
Concerns over the health of triple-AAA Austria and the Netherlands intensified after data showed Austria’s economy shrank 0.1% in the three months to September, while the Dutch economy contracted by an alarming 1.1%. Economists had only expected a decline of 0.2%.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.2%, while Japan’s Nikkei 225 Index inched up 0.04%.
Disappointing corporate earnings from U.S. retail giant Wal-Mart further weighed on appetite for riskier assets.
During early U.S. trade, the Dow Jones Industrial Average was flat, the S&P 500 index inched up 0.1%, while the Nasdaq Composite index rose 0.1%.
Concerns over the U.S. economic outlook resurfaced after official data showed that the number of individuals filing for initial jobless benefits in the week ending November 10 rose by 78,000 to a seasonally adjusted 439,000, compared to expectations for an increase of 14,000 to 375,000.
Continuing jobless claims in the week ended November 3 rose to 3.334 million, the highest level since July 2008. Analysts had expected continuing claims to rise to 3.210 million from last week’s revised figure of 3.163 million.
In addition, data showed that consumer price inflation in the U.S. rose in line with expectations in October, while prices excluding food and energy costs increased more-than-expected.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions improved unexpectedly in November, but remained in contraction territory for the fourth consecutive month.
The disappointing data added to expectations the Federal Reserve will keep its loose monetary policy intact.
The Fed indicated in the minutes of its October policy meeting published Wednesday that it may need to expand its monthly purchases of bonds next year, after the expiration of a program to extend the maturities of assets on its balance sheet, known as Operation Twist.
The discussion indicates that Fed officials judge the economy still needs record stimulus to reduce an unemployment rate stuck near 8%.
Investors also remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before the January 1 deadline.
President Barack Obama is set to meet with congressional leaders on Friday to discuss the country’s fiscal situation.
In earnings news, retail giant Wal-Mart saw shares tumble 4.5% after reporting third quarter revenue of USD113.2 billion, missing expectations for sales of USD114 billion. "Current macroeconomic conditions continue to pressure our customers," the company said.
Target shares slumped 0.5% after announcing a net profit of USD637 million for the third quarter. Quarterly revenue reached USD16.93 billion, in line with expectations.
On the upside, NetApp shares rallied 10.6% after reporting better-than-expected quarterly earnings after markets closed Wednesday.
Across the Atlantic, European stock markets were mildly lower. The EURO STOXX 50 was flat, France’s CAC 40 slid 0.15%, Germany's DAX retreated 0.45%, while Britain's FTSE 100 dropped 0.3%.
In the euro zone, official data released earlier showed that the region’s economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.
Year-on-year, euro zone gross domestic product fell 0.6% compared to a year earlier after contracting at a rate of 0.5% in the previous quarter.
The data came after reports showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter from a 0.3% increase in the previous quarter, while France's economy’s expanded 0.2%, following contraction of 0.1% in the previous quarter.
Data also showed Spain's economy contracted 0.3%, while Italy’s economy shrank 0.2% in the third quarter.
Concerns over the health of triple-AAA Austria and the Netherlands intensified after data showed Austria’s economy shrank 0.1% in the three months to September, while the Dutch economy contracted by an alarming 1.1%. Economists had only expected a decline of 0.2%.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.2%, while Japan’s Nikkei 225 Index inched up 0.04%.