Stocks fell in choppy trading on Wall Street on Thursday following weak results from Wal-Mart Stores and rising tensions in the Middle East.
Shares also dipped on data from the Federal Reserve Bank of Philadelphia that showed business activity in mid-Atlantic states unexpectedly contracted. A regional gauge of manufacturing in New York State slowed for a fourth consecutive month in November but was stronger than expected.
The broad Standard Poor’s 500-stock index lost 0.2 percent by the close of trading, as did the Dow Jones industrial average. The Nasdaq composite index lost 0.4 percent.
“There’s nothing that suggests the economy is poised to free-fall or rally, and with all the uncertainty out there people are choosing to just take their 2012 gains now rather than December,” said John Norris, managing director of wealth management with Oakworth Capital Bank in Birmingham, Ala.
Still, the S.P. 500 was up 7.6 percent so far this year, though at its 2012 peak the benchmark index was up more than 17 percent.
Wal-Mart fell 3.7 percent after reporting third-quarter revenue that missed expectations. The company said economic conditions pressured customers’ spending. Target rose 1.7 percent after it reported a profit that beat expectations.
Weekly jobless claims climbed in the latest week, hurt by the impact of Hurricane Sandy, though consumer prices came in as expected with a 0.1 percent increase, the government reported. Claims totaled 439,000, over expectations of 375,000.
The Philadelphia Fed said its business activity index slumped to -10.7 points from 5.7 the month before, a much steeper fall than had been expected. The data was affected by disruption from Hurricane Sandy, which slammed the Northeast in late October.
Both the Dow and Nasdaq on Wednesday ended at their lowest levels since late June, while the S.P. 500 is down about 5 percent since election night. Wednesday marked the benchmark index’s lowest close since July 25.
Overseas, Israel launched a major offensive against Palestinian militants in Gaza. Egypt said it recalled its ambassador from Israel in response.
European stocks ended lower Thursday, with the FTSE 100 in London and the DAX in Frankfurt down 0.8 percent and the CAC 40 in Paris 0.5 percent lower.
Article source: http://www.nytimes.com/2012/11/16/business/daily-stock-market-activity.html?partner=rss&emc=rss