Thursday, September 8, 2011

Why US stocks down september 8 2011

Why US stocks down september 8 2011 : US stocks fell Thursday on mixed economic data and as investors appeared cautious ahead of keenly awaited speeches from Federal Reserve chairman Ben Bernanke and President Barack Obama.

After snapping a three-session slide Wednesday with a triple-digit gain, the Dow Jones Industrial Average pared opening losses to trade 24.71 points lower (0.22 percent) to 11,390.15 at 1415 GMT.

The broader S&P 500 fell 4.36 points (0.36 percent) to 1,194.26, while the tech-heavy Nasdaq Composite slipped 1.83 points (0.07 percent) to 2,547.11.

"Caution is the early approach today," said Patrick O'Hare at Briefing.com.

Stocks were under pressure "following an unexpected rise in US jobless claims and as traders digest some key monetary policy decisions in Europe," Charles Schwab analysts said in a research note.

Wall Street traders were awaiting a speech by Fed chief Bernanke in the afternoon and Obama's speech to Congress on the economy and job creation in the evening (2300 GMT), analysts said.

Initial jobless claims rose last week and continuing to trend upward, the Labor Department reported.

The claims data signaled little change in the depressed labor market, where the unemployment rate remained stuck at 9.1 percent in August for the second straight month.

US trade numbers, however, offered a positive note. The US trade deficit shrank sharply in July, as exports surged and imports fell, the Commerce Department reported.

Most of the Dow's 30 blue-chip stocks were lower. Bank of America tumbled 2.3 percent to $7.31. Caterpillar and General Electric, key signals on the outlook for the global economy, fell 1.2 percent and 1.0 percent, respectively.

Software giant Microsoft was among the rare gainers, up 1.5 percent at $26.39.

Bond prices were mixed. The yield on the 10-year Treasury note fell to 2.02 percent from 2.04 percent late Wednesday, while that on the 30-year bond was unchanged at 3.35 percent. Bond prices and yields move in opposite directions. Copyright © 2011 AFP.
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