(By Balachander) U.S. stocks closed the third quarter in the red amid
uncertainty over Spain's request for a bailout package. A
set of soft domestic economic data also dented sentiment.
The S&P 500 Index fell 0.45 percent to finish at 1,440.67. The
Dow Jones Industrial Average retreated 0.36 percent to end at 13,437.13.
The Nasdaq Composite Index shed 0.65 percent to close at 3,116.23.
cut their losses after results of an independent audit showed that
Spanish banks face a shortfall of 59.3 billion euros ($76.2 billion),
less than prior estimates of around 60 billion euros. Spain commissioned
the stress tests as part of a pre-condition for a potential 100 billion
euro bailout package for its banking system.
Meanwhile, speculation rose that Moody's Investors Service may
downgrade Spain's sovereign rating to "junk" status. The ratings agency
is due to review Spain's credit rating on Friday.
On the U.S.
economic front, U.S. personal income rose 0.1 percent and personal
spending increased 0.5 percent for August, data from the Bureau of
Economic Analysis showed. Economists expected a 0.2 percent increase in
income and a 0.5 percent rise in spending. For July, income rose 0.1
percent and spending gained 0.4 percent.
In other domestic data, the Institute for Supply Management-Chicago's
index of Midwest business activity dropped to 49.7 in September from
53.0 in August with the business barometer reaching a three-year low.
Meanwhile, Thomson Reuters and the University of Michigan consumer
sentiment index for September fell to 78.3 from a preliminary reading of
Hot Stocks Of The Day: AAPL, RIMM, ACN, ADTN, GPN, CLWR, RMBS, NKE
corporate news, Apple Inc. (NASDAQ: AAPL) lost 2.09 percent. Apple's
Chief Executive Tim Cook apologized for flaws in the company's own
mapping service and directed customers to alternatively use maps
provided by Google Inc. (NASDAQ: GOOG) or Nokia Corp. (NYSE: NOK).
Research In Motion Ltd. (NASDAQ: RIMM) jumped 5.04 percent after the
Blackberry maker reported a quarterly loss due to lower revenue and a
decline in shipment of smartphones. However, results beat market
Nike Inc. (NYSE: NKE) declined 1.06 percent following the company's
lower first quarter earnings amid a rise in revenue and contraction of
margins. The company also said futures orders rose 6 percent.
Plc (NYSE: ACN) gained 7.19 percent after the technology services and
outsourcing company reported better-than-expected fourth quarter results
and issued an upbeat forecast.
ADTRAN Inc. (NASDAQ: ADTN) plunged 9.79 percent after the
communication services company reduced its third quarter forecast,
citing a challenging spending environment.
(NASDAQ: CLWR) tumbled 9.46 percent after the provider of fourth
generation (4G) wireless broadband services said Time Warner Inc. (NYSE: TWX) had
started selling its stake in the company via an offering of 46.4 million
Class A Clearwire shares.
Global Payments Inc. (NYSE: GPN) shed 4.50 percent following its
in-line first quarter earnings. The company also updated its guidance
for 2013 to incorporate completion of two acquisitions and new
Rambus Inc. (NASDAQ: RMBS) gained 4.53 percent after the
technology licensing company agreed to license its patented technology
to Fujitsu Semiconductor Ltd.
European markets ended in the red, with Germany's
DAX down 1.01 percent to close at 7,216.15. France's CAC40 fell 2.46
percent to finish at 3,354.82. U.K.'s FTSE 100 dropped 0.65 percent to
end at 5,742.07.
Asian markets closed slightly mixed, with China's Shanghai Stock
Exchange Composite Index up 1.45 percent to finish at 2,086.17. Japan's
Nikkei 225 fell 0.89 percent to end at 8,870.16. Hong Kong's Hang Seng
Index gained 0.38 percent to close at 20,840.38. India's BSE Sensex
closed at 18,762.74, up 0.99 percent.
Commodity & Currency Scan
Crude oil futures added 0.16
percent to $92.00 per barrel, and natural gas futures rose 0.67 percent
to $3.319 per million metric British thermal units. Gold futures fell
0.34 percent to $1,774.5 per ounce, and silver futures lost 0.32 percent
to $34.55 per ounce.
In the currency market, the
euro retreated 0.50 percent against the U.S. dollar to 1.2849. The
British pound shed 0.54 percent against the greenback to 1.6148, while
the dollar advanced 0.57 percent against the Japanese yen to 78.0400.