Stock averages close at session lows, falling for sixth in seven
session followng mixed economic data. The DJIA sheds more than 200
points, its biggest one-day plunge in nearly three months.
Disappointing reports on jobless claims and manufacturing topped
the better news found within housing and consumer spending data.
Crude oil fell early on but recovered to close up 0.3% at $70.82 a
barrel. The dollar mostly rose against other major currencies, while
gold prices slid.
Earlier, the Institute for Supply Management said its index of
manufacturing activity in September slipped to 52.6 from 52.9 in
August. The number fell short of analysts' expectations.
The Labor Department said new claims for jobless benefits rose last
week to 551,000. Economists polled by Thomson Reuters had predicted
claims would come in a 535,000.
The Commerce Department said consumer spending surged by the
largest amount in nearly eight years in August, as personal income
growth lags. Consumer spending rose 1.3 percent, fueled by
cash-for-clunkers car sales incentives. Incomes edged up 0.2 percent.
Meanwhile, the National Association of Realtors said pending home
sales in August rose 6.4 percent from July to 103.8. Economists
surveyed by Thomson Reuters expected the index would rise to 98.6.
Federal Reserve Chairman Ben Bernanke, testifying before Congress
this morning said that protecting consumers from abusive practices
involving mortgages, credit cards and other financial products is
"vitally important." The administration wants to create a consumer
protection agency for risky financial products, but Bernanke has
criticized the plan and wants to keep those powers within the Fed.
Bernanke conceded that the Fed didn't do the job it should have in protecting consumers, but said changes are underway.
With earnings season about to start, investors will also be gauging
corporate earnings and guidance for signs of the economy's direction.
Wall Street closed the books on a third quarter that brought some 15%
gains for the major averages.
NYSE down 193.27 (2.8%) to 6,717.61.
-DJIA down 205.2 (2.1%) to 9,508.
-S&P 500 down 27.2 (2.6%) to 1,030.
-Nasdaq down 49.60 (2.34%) to 2,072.82.
GLOBAL SENTIMENT
Hang Seng down 0.28%
Nikkei down 1.53%
FTSE down 1.68%
UPSIDE MOVERS
(+) BIOF amends credit agreement.
(+) BIG gets analyst upgrade.
(+) CHTP reports statistically significant study results for Droxidopa.
DOWNSIDE MOVERS
(-) BAC remains active after late Wednesday announcement that CEO Lewis to be out at year end.
(-) HSY down as WSJ story says company won't compete with Kraft (KFT) for Cadbury.
(-) LEAP says Cricket will sell PAYGo products at Target.
(-) BCRX loses evening gain that followed response to HHS regarding
Peramivir for Influenza, launch of two Phase 3 trials for Peramivir in
hospitals.
(-) XOMA initiates Phase 2 program for XOMA 52 in Type 2 diabetes and cardiovascular disease.
(-) HALO loses upside on data showing effectiveness of diabetes treatment
(-) CTIC reports high rate of complete remission in OPAXIO study.
(-) TER raises outlook to above Street view.
(-) SKS selling shares.
(-) VICL says Navy funds its H1N1 flu vaccine.
(-) CSCO making $3 billion acquisition of Tandberg.
(-) AKAM gets analyst downgrade.
(-) RAD says same-store sales dip.
(-) NVDA gets downgrade.
(-) RVSN gets downgrade.
