Star-Bulletin news services
Stocks end mixed
on weak economic data
NEW YORK >> A series of disappointing economic reports -- from manufacturing to jobless claims -- pressured Wall Street today, leaving stocks mixed as investors saw few signs of a resurgent economy.
Still, the market was remaining resilient, with blue chip stocks paring losses in the afternoon after dropping as much as 139 points. Analysts were somewhat surprised by the comeback.
"It seems investors are comfortable in believing there is going to be a recovery that is sooner rather than later, even if the belief is misplaced," added Robert Harrington, co-head of listed block trading at UBS Warburg.
Declining issues narrowly outnumbered advancers on the New York Stock Exchange. Volume was moderate.
The Dow Jones industrial average closed down 25.84, or 0.3 percent, at 8,454.25, having fallen 22.90 yesterday.
The broader market finished mixed. The Nasdaq composite index rose 8.25, or 0.6 percent, to 1,472.56. The Standard & Poor's 500 index dipped 0.62, or 0.1 percent, to 916.30. The Russell 2000 index inched up 0.15 to 398.83.
The price of the Treasury's 10-year note was down 1/16 point, while its yield rose to 3.84 percent from 3.83 percent yesterday. The price of two-year Treasury notes were unchanged and they yielded 1.48 percent.
Several disconcerting reports weighed on the market. The Institute for Supply Management said the nation's manufacturing sector contracted for a second month, with its index falling to 45.4 in April from 46.2 in March. Analysts had forecast an April reading of 47.
The Commerce Department said construction spending declined 1 percent in March, the largest drop in seven months. Economists were predicting a small rise in overall construction spending.
"The manufacturing number is the most damaging," said Russ Koesterich, U.S. equity strategist at State Street Corp. "It's been well-documented consumers have been holding up the economy, but what's missing is a rebound in capital spending. Now this rebound may not occur."
A pair of Labor Department reports on jobless claims and productivity also hurt stocks.
The department said new claims for unemployment benefits dropped last week by a seasonally adjusted 13,000 to 448,000. Still, claims still came in at their second-highest level of this year.
And U.S. productivity improved in the first quarter, increasing at an annual rate of 1.6 percent. That was more than twice the 0.7 percent growth rate registered in the previous quarter, but it was still lower than expectations.
Martha Stewart Living Omnimedia lost 43 cents to $8.25 on a stock downgrade from Morgan Stanley after the company posted a larger-than-expected loss for the first quarter.
Exxon Mobil rose 28 cents to $35.48 after the oil company reported quarterly earnings that beat Wall Street's estimates by a penny.
Overseas, Japan's Nikkei stock average finished 0.4 percent higher while Britain's FTSE 100 fell 1.2 percent. French and German markets were closed for the Labor Day holiday.
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