Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

U.S. stocks lower in risk-off trade; Dow Jones down 0.40%

Published 04/18/2012, 10:05 AM
NDX
-
UK100
-
FCHI
-
DJI
-
DE40
-
STOXX50
-
JP225
-
HK50
-
C
-
BAC
-
IBM
-
CL
-
BRKb
-
IXIC
-
CHSI
-
Investing.com - U.S. stocks were mixed to lower on Wednesday, as sustained concerns over the worsening of the sovereign debt crisis in the euro zone continued to dampen investor confidence.

During early U.S. trade, the Dow Jones Industrial Average dropped 0.40%, the S&P 500 index fell 0.28%, while the Nasdaq Composite index retreated 0.03%.

Sentiment remained under pressure ahead of a critical auction of two and 10-year Spanish government bonds on Thursday, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.

In addition, concerns over Spain’s troubled banking sector mounted after the country’s central bank reported that the amount of bad loans at domestic banks rose to an 18-year high in February.

Meanwhile, worries over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.

Financial stocks were mixed, as shares in Citigroup added 0.80%, while Bank of America, JP Morgan and Goldman Sachs declined 0.45%, 0.50% and 1.10% respectively.

Holding company Berkshire Hathaway dropped 0.92% after Chairman Warren Buffett announced after the market close on Tuesday that he had been diagnosed with stage one prostate cancer. Buffett also told CNBC nothing had changed in the company's succession plans.

In the tech sector, IBM saw shares tumble 2.55% after reporting first-quarter sales of USD24.7 billion, below analysts’ estimates and the smallest increase for the company since the third quarter of 2009.

Shares in Intel plunged 2.49% even after the chipmaker beat earnings and revenue estimates as the firm said expenses related to ramping up new production would have a bigger impact on gross margins than expected.

Also in earnings, BlackRock, the world's largest asset manager, plunged 2.19% although it posted earnings that beat estimates.

Bank of New York Mellon was also down 1.51% after reporting profit in line with expectations.

On the upside, Yahoo surged 2.27% after announcing higher-than-estimated first-quarter sales, fueling optimism that a turnaround effort by Chief Executive Officer Scott Thompson may succeed.

SXC Health Solutions also added to gains, soaring 7.02% after saying it will acquire pharmacy benefit manager Catalyst Health Solutions in a deal valued at about USD4.4 billion in cash and stock.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 tumbled 1.38%, France’s CAC 40 dropped 1.37%, Germany's DAX retreated 0.76%, while Britain's FTSE 100 fell 0.28%.

During the Asian trading session, Hong Kong's Hang Seng Index rose 1.2%, while Japan’s Nikkei 225 Index rallied 2.1%.

Later in the day, the U.S. was to produce government data on crude oil stockpiles.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.