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U.S. stocks decline after CPI, jobless data; Dow Jones sheds 0.22%

Published 02/17/2011, 10:00 AM
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Investing.com – U.S. stocks were down after the open on Thursday, after data showed both a rise in consumer prices and new claims for unemployment benefits and as investors digested a mixed bag of corporate earnings reports.

During early U.S. trade, the Dow Jones Industrial Average slumped 0.22%, the S&P 500 index shed 0.21%, while the Nasdaq Composite index dropped 0.25%. 

Earlier in the day, government data showed that U.S. core consumer prices rose at their quickest pace in more than a year in January, increasing by 0.2%, while a separate report showed that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected, increasing to a seasonally adjusted 410K.  
 
Meanwhile, shares in data-storage company NetApp plunged 9.14% after it reported fiscal third quarter revenue came in at USD1.27 billion, falling short of market expectations for revenue of USD1.32 billion. Following the results, Citigroup downgraded the stock from ‘buy’ to ‘hold’.

Shares in consumer electronics giant Apple slumped 1.28%, following reports that chief executive Steve Jobs was seen leaving a cancer treatment center in California. The stock traded at an all-time high on Wednesday.

Meanwhile, shares in the financial sector were broadly lower after the Wall Street Journal reported that major U.S. lenders could face penalties after U.S. regulators found “serious problems” with their mortgage-servicing practices.
   
Shares in Bank of America fell 0.34%, Goldman Sachs dropped 0.83%, while JP Morgan Chase saw shares slide 0.55%.

However, Barrick Gold saw shares jump 1.95% after it reported fourth quarter net income of USD896 million, up 76% from a year earlier. Sales in the quarter rose 20% to USD2.95 billion, boosted by record-high gold prices.   

Shares in the largest U.S. utility provider Duke Energy added 2.82% after it said fourth quarter earnings increased 19% to USD427 million. Revenue in the quarter rose to USD3.45 billion, exceeding expectations for revenue of USD3.15 billion. 

Also Thursday, shares in mining equipment manufacturer Joy Global climbed 0.86% after Standard & Poor’s announced that the company will replace Allegheny Energy in the S&P 500 Index. 

Across the Atlantic, European stock markets were down. The EURO STOXX 50 dipped 0.27%, France’s CAC 40 slumped 0.34%, Germany's DAX declined 0.45%, while Britain's FTSE 100 fell 0.22%.

Later in the day, Federal Reserve Chairman Ben Bernanke was to testify before the Senate Banking Committee, while the Federal Reserve Bank of Philadelphia was to publish a report on manufacturing activity in the region.


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