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U.S. stocks lower as Greece dominates; Dow Jones down 0.20%

Published 05/17/2012, 09:45 AM
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Investing.com - U.S. stocks were lower on Thursday, after positive U.S. employment data as concerns over developments in Greece and their effects throughout the euro zone continued to weigh.

During early U.S. trade, the Dow Jones Industrial Average fell 0.20%, the S&P 500 index declined 0.16%, while the Nasdaq Composite index retreated 0.19%.

U.S. data showed earlier that the number of individuals filing for initial jobless benefits in the week ending May 12 held steady at 370,000, confounding expectations for a decline to 365,000.

But sentiment remained vulnerable as shares of Spanish lender Bankia tumbled on the IBEX exchange amid reports that consumers have withdrawn more than EUR1 billion in funds since the bank was nationalized last week.

Meanwhile, fears over the implications of a Greek exit from the euro zone continued as the country prepared for fresh elections next month, which could see anti-austerity parties take power.

In retailers, Wal-Mart rallied 4.16% after reporting better-than-expected quarterly results and posting a gain in same-store sales.

Sears also surged 8.67% after the retailer said it plans to spin off a large part of its stake in its Canada unit to better focus on its U.S. business. The firm also posted a narrower-than-expected loss.

Elsewhere, Internet company AOL, which has been engaged in a long-standing proxy fight with Starboard Value, advanced 0.49% after it urged shareholders to vote against the activist hedge fund's slate of board nominees.

Meanwhile, Tiffany fell 0.31% after the upscale jeweler raised its dividend by 10% to 32 cents a share from 29 cents a share, the firm's 11th increase in the last 10 years.

In the tech sector, Apple shares retreated 0.70%, as analysts expect the company to struggle to cut its reliance on rival Samsung Electronics for component supplies, despite speculation that it has begun reducing its use of Samsung memory chips.

Health care giant Johnson & Johnson's also saw shares edge down 0.17% after announcing that adding the company’s advanced prostate cancer drug, Zytiga, to hormone therapy before surgery was shown for the first time to eradicate tumors in some men with high-risk forms of the disease.

Other stocks in focus included Aeropostale, Gap, Applied Materials and Marvell Tech, slated to post earnings after the bell.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.05%, France’s CAC 40 dropped 0.74%, Germany's DAX declined 0.70%, while Britain's FTSE 100 plummeted 1.11%.

During the Asian trading session, Hong Kong's Hang Seng Index rose 0.7%, while markets in Japan’s Nikkei 225 Index added 0.8%.

Later in the day, the U.S. was to produce a report on manufacturing activity in the Philadelphia area.


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