Construction and mining equipment maker Terex Corp (NYSE: TEX) cut its 2008 sales and profit forecast, citing weak demand in Western Europe and North America. Terex shares fell 19.7 percent to $38.02.
Hovnanian (NYSE: HOV) Enterprises Inc. had the biggest drop since October 1998, retreating 17 percent to $6.40. New Jersey's biggest homebuilder reported its eighth consecutive quarterly loss after nine years of gains.
Wal-Mart Inc. (NYSE: WMT), the world's largest retailer, reported bigger-than-expected sales in the month of August. Excluding fuel expenses, the firm reported 3 percent increase in August sales at U.S. stores open at least a year, beating analysts' projection of around 1.5 percent of that growth rate. Shares of the company were up 0.5% at $60.07 at the end of the day.
All eyes are now on the August jobs report for any signal of further trouble for the economy.
Earlier, stocks dropped on Wednesday after the Federal Reserve said business across most of the U.S. was "slow" last month as the housing market weakened. Almost all of the Fed's districts reported pressure to raise prices because of higher commodity costs, according to the central bank's Beige Book report.
European stocks too ended the day lower on worsening economic growth in Eurozone. New ECB staff economic projections showed an increase in inflation forecasts and a cut in growth expectations compared with their last prognosis three months ago. European Central Bank President Jean-Claude Trichet reiterated that policy makers remain focused on inflation even as the economy slows. German factory orders unexpectedly fell 1.7 percent in July, extending their longest ever declining streak and increasing the likelihood that Europe's largest economy is heading for a recession. Reports yesterday showed consumer spending, company investment and exports fell in the second quarter, dragging the European economy into a 0.2 percent contraction.
Crude Oil extended its decline for sixth straight session as dollar continued its rally against euro. U.S. crude oil futures ended more than $1 lower on Thursday Oil has tumbled more than 6 percent so far this week as the euro dropped to the weakest this year against the U.S. currency amid signs that Europe's economy is slowing. Euro touched $1.432, the lowest since Dec. 21.
Disclosure: Author do not own any stocks mentioned in this release.
