Wall Street Tumbles On Flat Economic Data

Michael Teague |

Stocks ended the day significantly lower as relatively flat economic data amid continued speculation concerning the near-term future of Federal stimulus spending.

The Standard & Poor’s 500 was off by 0.52 percent to 1,685.39 points, with the Dow Jones Industrial average down 0.73 percent to 15,337.66, and the NASDAQ closing at a loss of 0.41 percent to 3,669.27.

The New York Federal reserve reported on Wednesday that household debt in the US fell 0.7 percent from the previous quarter to $11.5 trillion with mortgages, the largest component of debt in the US, dropping $91 billion dollars from the first quarter.

July producer price index figures were also released, showing no change from July and missing expectations for a gain of 0.3 percent.

The relative lack of catalysts was accompanied by a relative bloodletting on Wall Street. Services stocks helped to drag the S&P 500 lower, with Moody’s Corp. ($MCO), Macy’s Inc. ($M) and McGraw Hill Financial ($MHFI) all taking significant losses. Oil stocks also contributed downward pressure, with Newfield Exploration ($NFX), Noble Corp. ($NE), and Pioneer Natural Resources ($PXD) all ending the day lower.

Most of the Dow’s components were in the red as well, led by Home Depot ($HD) and Johnson & Johnson (JNJ), with Boeing ($BA) and United Technologies ($UTX) extending their losses to a second day.

On the NASDAQ, Tesla Motors ($TSLA) ended the day 4 percent lower, while travel website Trip Adviser ($TRIP) ended the day 9 percent lower after CEO Steve Kauffer said on a conference call that sales for the summer had been worse than expected, and hinted that third-quarter results would be negatively affected as a result.

Data storage device-maker Brocade Communications ($BRCD) saw shares up 16 percent by closing after yearly earnings saw the company beating on earnings by about double the amount that had been expected by analysts.

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Companies

Symbol Name Price Change % Volume
MHFI McGraw Hill Financial Inc. n/a n/a n/a 0
BRCD Brocade Communications Systems Inc. 12.41 0.00 0.00 12
TSLA Tesla Motors Inc. 185.85 0.00 0.00 18,853
TRIP TripAdvisor Inc. 48.17 0.00 0.00 0
M Macys Inc. 42.40 0.00 0.00 350
NE Noble Corporation (UK) 6.83 0.00 0.00 1,408
MCO Moody\'s Corporation 96.91 0.00 0.00 0
NFX Newfield Exploration Company 47.18 0.00 0.00 0
PXD Pioneer Natural Resources Company 184.77 0.00 0.00 561
GUORF GuocoLeisure Ltd 0.50 0.00 0.00 0

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