July 31 (Bloomberg) -- U.S. stocks fell, capping a second monthly drop for the Standard & Poor's 500 Index, after economic growth trailed forecasts, jobless claims rose to a five-year high and Exxon Mobil Corp.'s profit missed analysts' estimates.
``The data put the market on notice that the economy is slowing,'' said Quincy Krosby, who helps manage $380 billion as chief investment strategist at the Hartford in Hartford, Connecticut. ``It's not equity friendly.''
Caterpillar Inc., Boeing Co. and Walt Disney Co. led the retreat after the Commerce Department said the economy grew at a 1.9 percent rate last quarter and contracted at the end of 2007. Exxon Mobil fell, extending the worst monthly slump for S&P 500 energy companies since at least 1989, after declining production slowed earnings growth. Benchmark indexes extended their tumble late in the day after former Federal Reserve Chairman Alan Greenspan said the housing slump will worsen.
The S&P 500 slid 16.88 points, or 1.3 percent, to 1,267.38, leaving the benchmark index down 1 percent in July. The Dow Jones Industrial Average lost 205.67, or 1.8 percent, to 11,378.02. The Nasdaq Composite Index slipped 4.17, or 0.2 percent, to 2,325.55. Almost three stocks retreated for each that rose on the New York Stock Exchange.
Jobs Concern
The S&P 500 trimmed its rebound from an almost three-year low on July 15 to 4.3 percent. The 448,000 increase in jobless claims weighed on stocks as investors await tomorrow's government report forecast to show the nation lost 75,000 jobs in July. Even though the majority of companies have beaten estimates, S&P 500 profit growth has slumped 17 percent on average from a year earlier, according to data compiled by Bloomberg.
The Dow ended the month with a 0.3 percent gain, while the Nasdaq posted a 1.4 percent increase.
Caterpillar, the largest maker of bulldozers, slumped 3.5 percent to $69.52 today. Boeing, the world's second-biggest commercial airplane maker, lost 4.3 percent to $61.11.
Disney, the biggest theme-park operator, dropped $1.32, or 4.2 percent, to $30.35 even after posting a 9 percent gain in third-quarter profit and beating analysts' estimates.
The Commerce Department report on gross domestic product showed the drag from the worst housing slump since the Great Depression and rising unemployment blunted the impact of federal tax rebates. Economists surveyed by Bloomberg had forecast growth of 2.3 percent in the second quarter.
The economy shrank 0.2 percent in the fourth quarter last year, compared with a previously reported 0.6 percent gain. The report also contained annual revisions that lowered the growth rate back to 2005.
``The markets don't like it,'' said Peter Boockvar, an equity strategist at Miller Tabak & Co. in New York. ``You listen to a market of optimists who think the worst is over and that it's gonna be OK, but this data is showing you it's not.''
Exxon, MasterCard
Exxon slid $3.95, or 4.7 percent, to $80.43. Production tumbled 7.8 percent after assets were seized in Venezuela, Nigerian workers went on strike and record prices triggered contract clauses that give oil-rich governments a bigger share of output.
The S&P 500 Energy Index slumped 3.4 percent, extending its July retreat to 14 percent.
MasterCard Inc. dropped $29.36, or 11 percent, to $241.37. The world's second-biggest credit-card company posted a $746.7 million loss on costs to settle an antitrust lawsuit with American Express Co.
Akamai Technologies Inc. fell the most in the S&P 500, losing $7.91, or 25 percent, to $23.34. The largest supplier of software to speed up Web services lowered its profit forecast.
U.S. stocks likely will keep falling until consumer and business loans are more readily available, Merrill Lynch & Co.'s chief investment strategist said.
`Pretty Hard'
``It's going to be pretty hard for the stock market to bottom and form a bull market without credit conditions easing,'' said Richard Bernstein in a Bloomberg Television interview. ``Clearly credit issues aren't easing just yet.''
No hay comentarios.:
Publicar un comentario