Investing.com - U.S. stocks opened lower on Thursday, as downbeat comments by European Central Bank Mario Draghi added to concerns over the euro zone’s debt crisis, while positive U.S. economic reports eased expectations for further stimulus measures by the Federal Reserve.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.54%, the S&P 500 index declined 0.48% while the Nasdaq Composite index fell 0.16%.
Market sentiment was hit after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region. The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell to 374,000, compared to expectations for a decline to 385,000.
The data came after payroll processing firm ADP said non-farm private employment rose by 176,000 in June, easily surpassing expectations for an increase of 105,000.
U.S. lenders tracked their European counterparts broadly lower, as shares in JP Morgan plunged 2.20% and Bank of America tumbled 1.74%, while Citigroup and Goldman Sachs retreated 1.37% and 1.24% respectively.
Shares in Barclays also plummeted 1.80%, after Moody's Investors Service changed the outlook on the bank to negative from stable, citing the uncertain management outlook after recent departures in the light of the Libor scandal.
Among retailers, Costco dropped 0.54% and The Buckle plunged 5.65% after posting weaker-than-expected same-store sales in June, as consumers pulled back on spending amid concerns about jobs and the economy.
On the upside, Apple shares jumped 1.06% although Taiwanese smartphone maker HTC won a London court ruling on Wednesday against the U.S. tech giant over a series of patent infringement claims linked to technology used in its mobile devices.
Elsewhere, U.S. auto parts supplier Visteon saw shares soar 4.92% after saying it would offer USD800 million to take full control of South Korean car air conditioner maker Halla Climate Control.
General Motors also climbed 1.45% after announcing plans to overhaul half of its Brazil lineup in order to grow faster than its rapidly multiplying rivals.
Across the Atlantic, European stock markets were lower. The EURO STOXX 50 plunged 1.32%, France’s CAC 40 tumbled 1.20%, Germany's DAX dropped 0.72%, while Britain's FTSE 100 eased 0.09%.
During the Asian trading session, Hong Kong's Hang Seng Index eased up 0.3%, while Japan’s Nikkei 225 Index shed 0.3%.
Also Thursday, Spain sold EUR2.997 billion of government bonds, in line with the full targeted amount of EUR3 billion, but at higher yields from last month.
The yield on Spanish 10-year bonds rose to 6.53% following the auction, re-approaching the critical 7%-level deemed as unsustainable in the long-term.
Later in the day, the Institute of Supply Management was also to release a report on U.S. service sector activity.
During early U.S. trade, the Dow Jones Industrial Average dropped 0.54%, the S&P 500 index declined 0.48% while the Nasdaq Composite index fell 0.16%.
Market sentiment was hit after ECB President Draghi said that the economic outlook faces downside risks, adding that indicators for the second quarter point to weakening growth in the euro zone.
Draghi said that there was probably a "renewed weakness in economic growth" in the last three months, with "heightened uncertainty.
The comments came after the central bank cut its benchmark interest rate to a record low 0.75% in July, in a bid to bolster faltering growth in the region. The central bank also lowered its marginal lending to 1.50% from 1.75% and the deposit facility rate to 0% from 0.25%.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 30 fell to 374,000, compared to expectations for a decline to 385,000.
The data came after payroll processing firm ADP said non-farm private employment rose by 176,000 in June, easily surpassing expectations for an increase of 105,000.
U.S. lenders tracked their European counterparts broadly lower, as shares in JP Morgan plunged 2.20% and Bank of America tumbled 1.74%, while Citigroup and Goldman Sachs retreated 1.37% and 1.24% respectively.
Shares in Barclays also plummeted 1.80%, after Moody's Investors Service changed the outlook on the bank to negative from stable, citing the uncertain management outlook after recent departures in the light of the Libor scandal.
Among retailers, Costco dropped 0.54% and The Buckle plunged 5.65% after posting weaker-than-expected same-store sales in June, as consumers pulled back on spending amid concerns about jobs and the economy.
On the upside, Apple shares jumped 1.06% although Taiwanese smartphone maker HTC won a London court ruling on Wednesday against the U.S. tech giant over a series of patent infringement claims linked to technology used in its mobile devices.
Elsewhere, U.S. auto parts supplier Visteon saw shares soar 4.92% after saying it would offer USD800 million to take full control of South Korean car air conditioner maker Halla Climate Control.
General Motors also climbed 1.45% after announcing plans to overhaul half of its Brazil lineup in order to grow faster than its rapidly multiplying rivals.
Across the Atlantic, European stock markets were lower. The EURO STOXX 50 plunged 1.32%, France’s CAC 40 tumbled 1.20%, Germany's DAX dropped 0.72%, while Britain's FTSE 100 eased 0.09%.
During the Asian trading session, Hong Kong's Hang Seng Index eased up 0.3%, while Japan’s Nikkei 225 Index shed 0.3%.
Also Thursday, Spain sold EUR2.997 billion of government bonds, in line with the full targeted amount of EUR3 billion, but at higher yields from last month.
The yield on Spanish 10-year bonds rose to 6.53% following the auction, re-approaching the critical 7%-level deemed as unsustainable in the long-term.
Later in the day, the Institute of Supply Management was also to release a report on U.S. service sector activity.