Stocks Lower After Economic Data
Faced with another landscape of mixed corporate earnings, Wall Street waffled on Thursday morning. After bouncing between light gains and losses, stocks slid moderately lower as investors confronted more troubling signals about job losses and home sales.
Shares of major construction companies and home builders slipped as the National Association of Realtors reported that sales of previously owned homes declined 3 percent in March to an annual pace of 4.57 million. Nationwide, the median home price rose slightly to $175,200, but was still about 24 percent lower than its peak of $230,100 from July 2006.
After months of almost unyielding declines, home sales have bumped up and down over the past few months, suggesting to some economists that the long-struggling housing market is searching for a bottom. Falling prices and a flood of foreclosures have breathed life back into some corners of the market, and the Realtors group said first-time buyers accounted for 53 percent of all sales in March.
Still, analysts warn that the foundering housing market — the root of the country’s financial crisis — is not likely to rebound anytime soon.
At 10:30 a.m., the Dow Jones industrial average was down about 30 points while the broader Standard & Poor’s 500-stock index was slightly lower, reflecting declines in health-care companies, the technology sector and telecommunications providers.
But some companies were outpacing the lethargic markets.
Shares of Apple bounced close to 4 percent after the maker of personal computers, iPhones and iPods reported better-than-expected earnings after markets closed on Wednesday. Apple said its net profit jumped 15 percent, a surprising sign of strength during a recession that has driven consumer spending into hiding.
The online marketplace eBay surged nearly 10 percent after it reported lower profits and revenue, but still managed to beat analysts’ expectations.
With Thursday’s declines, the major indexes were on pace to post their first weekly drop after six weeks of almost uninterrupted gains.
Stocks rose sharply from their low points of early March on renewed optimism about bank earnings and signs of hope in the broader economy. But the rally has lost some momentum this week as investors examine lower earnings reports from a litany of big companies.
Also on Thursday, the Labor Department reported that initial jobless claims rose 27,000 to a seasonally adjusted 640,000, and that continuing claims for unemployment insurance rose to 6.1 million for the week ending April 11, from 6 million a week earlier.
Stocks Lower After Economic Data
Hot News: Profit Tumbles at ConocoPhillips
Tags: finance, india, life, newsreports, personal, world, writing
Print This Post
359 views
(No Ratings Yet)
Loading ...