By Dan Strumpf And Saumya Vaishampayan
U.S. stocks slipped, weighed down by soft economic reports
overseas and a batch of disappointing earnings reports.
The Dow Jones Industrial Average lost 57 points, or 0.3%, to
17893 in early trading. The S&P 500 index declined three
points, or 0.2%, to 2105. The Nasdaq Composite Index lost nine
points, or 0.2%, to 5026.
Data showing the eurozone's economy slowed in April weighed on
European stocks. Germany's DAX fell 1.3% and France's CAC 40 lost
1%.
Chinese manufacturing activity fell to a one-year low, another
sign of a slowdown in the world's second-largest economy. Asian
stocks were mixed, with the Hang Seng Index losing 0.4% and the
Shanghai Composite Index adding 0.4%.
The economic reports from Europe and China weighed on stocks in
premarket trading and sent stocks sliding at the opening bell. At
the same time, a mixed bag of corporate earnings reports failed to
cheer investors.
"There isn't rip-roaring news this morning," this Michael
Antonelli, equity sales trader at Robert W. Baird in Milwaukee.
"We're still sitting near the highs, but there hasn't been enough
to push it through yet. The earnings haven't been good enough."
While the Dow and S&P have minted several records in the
last six years of a bull market, most recently on March 2, the
Nasdaq has yet to breach its all-time high from the tech bubble.
The tech-heavy index crossed 5000 for the first time since 2000 on
March 2 and made another run at its record in late March. On
Wednesday, the Nasdaq came within 14 points of the all-time record
of 5048.62.
Meanwhile, a batch of mixed first-quarter earnings reports
dampened investor sentiment.
Shares of General Motors Co. fell 3% after the auto maker
reported a $945 million net profit in the first quarter, but its
operating performance fell short of expectations.
Procter & Gamble Co. stock lost 1% after the consumer
products maker said sales fell 7.6% in the March quarter due to the
strong dollar.
Shares of Caterpillar Inc. gained 1.4% after the heavy equipment
maker lifted its profit outlook for the year after reporting
better-than-expected earnings in the first quarter. Shares rose
3.6% in premarket trading.
"We know it's not easy for U.S. corporations to increase
earnings meaningfully at this point in the cycle," said Dan Morris,
global investment strategist at TIAA-CREF, which manages $611
billion. Companies had been looking to sell more products in
Europe, where the European Central Bank is attempting to kick-start
growth, he said. "That was one of your bright spots, and that
bright spot just got a little less bright," he added.
In economic news, U.S. jobless claims rose by 1,000 to 295,000
in the week ended April 18, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal expected 290,000
claims. Later in the morning, readings on manufacturing in April
and March home sales are due.
The yield on the 10-year Treasury note was at 1.975%, compared
with 1.972% on Wednesday. Yields rise as prices fall. Gold futures
added 0.2% to $1188.30 an ounce. Crude-oil futures rose 0.2% to
$56.28 a barrel.
Write to Dan Strumpf at daniel.strumpf@wsj.com and Saumya
Vaishampayan at saumya.vaishampayan@wsj.com
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