U.S. stocks traded lower Tuesday on Chinese economic growth concerns and lowered commodity prices amid profit taking from the three month equity rally
Near the close of U.S. trade, the Dow Jones Industrial Average gave back 0.52%, the S&P 500 dropped 0.31%, while the Nasdaq Composite eased lower by 0.14%.
Investors launched into profit taking mode as the S&P 500 advanced 12% in the first three months of 2012 due to solid corporate earnings and strong domestic economic data.
Stock profit taking was triggered when BHP Billiton stated that Chinese steel production is slowing causing concerns about growth in the world’s second largest economy.
In the U.S., governmental data revealed that housing starts dropped in February, but the number of building permits issued rose to the highest level since October 2008.
The Commerce Department stated housing starts declined 1.1% last month to a seasonally adjusted 0.70 million from a revised 0.71 million units in January. Economists had forecast housing starts little changed at a 0.70 million-unit rate.
Building permits jumped 5.1% to a seasonally adjusted 0.72 million, above expectations for a modest 0.6% gain to 0.69 million.
In the euro zone, investors were watching the outcome of talks between Italian Prime Minister Mario Monti and union leaders regarding reforms to the country’s labor market, as Monti attempts to turn around the euro zone’s third largest economy.
Alcoa gave back 1.7% on the Chinese slowing fears, while luxury retailer, Tiffany soared 6.8% on better than profit forecasts.
Software maker, Adobe Systems fell 4% as its profit forecast missed some analysts estimates.
At the close of European trade, the EURO STOXX 50 traded down 1.22%, France's CAC 40 fell 1.32%, while Germany’s DAX gave back 1.39%. Meanwhile, in the U.K. the FTSE 100 traded down 1.17%.
Investors are awaiting U.K. policy meeting minutes and U.S. existing home sales and crude oil stockpiles on Wednesday.
Near the close of U.S. trade, the Dow Jones Industrial Average gave back 0.52%, the S&P 500 dropped 0.31%, while the Nasdaq Composite eased lower by 0.14%.
Investors launched into profit taking mode as the S&P 500 advanced 12% in the first three months of 2012 due to solid corporate earnings and strong domestic economic data.
Stock profit taking was triggered when BHP Billiton stated that Chinese steel production is slowing causing concerns about growth in the world’s second largest economy.
In the U.S., governmental data revealed that housing starts dropped in February, but the number of building permits issued rose to the highest level since October 2008.
The Commerce Department stated housing starts declined 1.1% last month to a seasonally adjusted 0.70 million from a revised 0.71 million units in January. Economists had forecast housing starts little changed at a 0.70 million-unit rate.
Building permits jumped 5.1% to a seasonally adjusted 0.72 million, above expectations for a modest 0.6% gain to 0.69 million.
In the euro zone, investors were watching the outcome of talks between Italian Prime Minister Mario Monti and union leaders regarding reforms to the country’s labor market, as Monti attempts to turn around the euro zone’s third largest economy.
Alcoa gave back 1.7% on the Chinese slowing fears, while luxury retailer, Tiffany soared 6.8% on better than profit forecasts.
Software maker, Adobe Systems fell 4% as its profit forecast missed some analysts estimates.
At the close of European trade, the EURO STOXX 50 traded down 1.22%, France's CAC 40 fell 1.32%, while Germany’s DAX gave back 1.39%. Meanwhile, in the U.K. the FTSE 100 traded down 1.17%.
Investors are awaiting U.K. policy meeting minutes and U.S. existing home sales and crude oil stockpiles on Wednesday.