May 26, 2011
U.S. stocks fell in relatively light trading after a round of disappointing data renewed investor caution over the pace and health of the economic recovery.
The Dow Jones Industrial Average shed 47 points, or 0.4%, to 12347 in Thursday morning trading, led lower by Walt Disney, Merck, and Home Depot, each of which shed 1.2%. The Standard & Poor’s 500-stock index lost 4 points, or 0.3%, to 1316, as health care and materials stocks dropped. The technology-heavy Nasdaq Composite edged down half a point to 2761.
The moves set up the blue-chip Dow for its fourth loss in five days. It follows a 38-point gain in the index that snapped a three-day losing streak, thanks to strength in energy and commodities.
Investors were discouraged by a jump in jobless claims to a seasonally adjusted 424,000 in the week ended May 21, which was worse than anticipated. In addition, the Commerce Department left first-quarter gross domestic product growth at 1.8%, disappointing forecasts. A third round of weak data came late morning as the Federal Reserve Bank of Kansas City’s reading on manufacturing activity came in just about flat for May.
This article was posted: Thursday, May 26, 2011 at 11:03 am