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U.S. shares lower on housing, Europe; Dow down 0.21%

Published 02/22/2012, 04:35 PM
Updated 02/22/2012, 04:36 PM
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Investing.com - U.S. stocks closed lower Wednesday on weaker than expected U.S. housing numbers, euro zone economic data and continued Greek fears.
 
At the close of U.S. trade, the Dow fell 0.21%, the S&P 500 dropped 0.33% and the Nasdaq Composite gave back 0.52%.
 
Purchases of previously owned homes advanced to 4.57 million annual rate, but this was less than the forecasted amount casting doubt on the recovery in the world’s largest economy.
 
The bearish sentiment was stroked when London based, Markit Economics said its composite purchasing manager index for both service and manufacturing dropped to 49.7 in February from a reading of 50.4 in January in the euro zone.
 
This contraction of service and manufacturing output signals additional struggles ahead for the euro zone region.
 
Another report showed German services and manufacturing expansion surprisingly slowed in February further adding to the equity negative session.
 
Meanwhile, in Greece, Fitch Rating slashed the island nations credit grade two levels to C from CCC after the country obtained approval to proceed with the bond exchange  to reduce its debt burden.
 
Adding to the Greek fears, Bank of England Deputy Governor, Charlie Bean stated, “While the agreement is certainly welcome, there still remains a possibility that events could unfold in a disorderly and damaging fashion at some time in the future.”
Near the close of European trade, the EURO STOXX 50 fell 0.89%, France's CAC 40 gave back 0.52%, while Germany’s DAX dropped 0.93%. Meanwhile, in the U.K. the FTSE 100 dipped 0.20%.
 
Toll Brothers and KB Homes were punished by the weaker than expected home sales numbers falling more than 2.7% each.
 
Dell gave back 6.1% when its sales forecasts missed estimates.
 
Wal-Mart led the Dow lower dropping 2.1% after missing analysts’ profit estimates.
 
In bullish news, newspaper publisher Gannett surged 4.4% after stating it will boost its dividend.
 
Intuit, the tax software makers, advanced 6.6% after lifting its full year forecast.
 
Investors are awaiting U.S. unemployment numbers and Germany’s business climate results on Thursday.



 

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