US Stocks Lower; Dow's Winning Streak At Risk
March 15 2012 - 10:22AM
Dow Jones News
U.S. stocks edged lower despite firm readings on the labor
market and manufacturing activity, putting in jeopardy blue chips'
chances for a seventh consecutive gain.
The Dow Jones Industrial Average fell 11 points, or 0.1%, to
13184. Dow industrials had climbed 3.4% over the last six-sessions,
the longest streak of gains such run since an eight-session streak
ended in February.
The Standard & Poor's 500-stock index fell 1 point, or 0.1%,
to 1395 and the Nasdaq Composite fell 1 point, or 0.1%, to
3040.
Technology stocks led all sectors on Thursday's as Apple briefly
topped $600 for the first time, while consumer discretionary stocks
lagged behind. Shares rose 1.3%, after a Dutch court said Samsung
Electronics can't pursue injunctions for infringing patent
infringement as long as Apple is willing to negotiate license
agreements. Among blue chips, Bank of America rose 0.8% and General
Electric rose 0.7%.
Stocks rose after a raft of U.S. economic data offered more
confirmation that the U.S. economic recovery is gaining steam. The
number of U.S. workers filing new applications for unemployment
benefits fell more than expected last week. Initial jobless claims
tumbled by 14,000 to a seasonally adjusted 351,000 last week.
Economists surveyed by Dow Jones Newswires had forecast that claims
would fall by 5,000.
"Those unemployment numbers--they're not great, but they're good
enough to keep the improving trend story and the economy going,"
said Channing Smith, managing director at Capital Advisors.
Data showed New York manufacturing activity accelerated in
March. The Empire State's business conditions index increased for
the fourth consecutive month to 20.21 from 19.53 in February, the
highest in well over a year. Economists had expected the index to
drop to 17.9.
Still due at 10 a.m. EDT is a reading of manufacturing activity
in the Philadelphia region, which is expected to show a slight
increase in March.
U.S. wholesale prices increased in February at the fastest pace
in five months, driven by rising gasoline costs. The producer price
index increased a seasonally adjusted 0.4%, slightly less the
expectations for a 0.5% rise.
European markets edged lower, with the Stoxx Europe 600 falling
0.1%. London's FTSE 100 Index declined 0.2% after Fitch Ratings
cuts its outlook on the U.K. to negative, saying the country's
financial flexibility was "very limited."
Asian bourses were mostly lower. China's Shanghai Composite fell
0.7%, but Japan's Nikkei Stock Average rose 0.7% to post its third
consecutive gain.
Crude futures gained 0.4% to $105.81 a barrel, while gold
futures added 0.2% to $1,645.10 a troy ounce. The U.S. dollar lost
ground against both the euro and the yen. The yield on 10-year U.S.
Treasury bonds rose to 2.342%.
In deal news, Cisco Systems plans to acquire NDS Group, a
U.K.-based video software maker, in a $4 billion deal. The deal
reflects Cisco's increased strategic focus on video. Cisco fell
0.3%.
In other corporate news, Guess reported fiscal fourth-quarter
earnings that were in line with expectations, but revenue fell
short, and the company provided first-quarter earnings and revenue
outlooks well below current projections. Shares of the apparel and
accessories retailer slumped 11%.
Capital One Financial said it plans to offer up to $1.25 billion
worth of its common stock in a public sale to help fund its
previously-announced acquisition of HSBC's U.S. credit card
business. Capital One slipped 0.6%.
Radvision agreed to be acquired by Avaya in a deal valued at
$230 million. Shares of the video conferencing technologies company
tacked on 4.6%.
Vera Bradley reported fiscal fourth-quarter earnings and revenue
that topped estimates, but provided a first-quarter earnings
outlook that was below current projections. The stock slid
6.3%.
Winnebago Industries reported better-than-expected fiscal
second-quarter revenue, but also surprise loss for the quarter
because of increased discounts and aggressive pricing strategies.
Shares edged lower by 0.7%.
-Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com