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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
MHFI McGraw Hill Financial Inc. n/a n/a n/a 0
BRCD Brocade Communications Systems Inc. 12.23 -0.02 -0.12 932,591 Trade
TSLA Tesla Motors Inc. 358.58 -4.33 -1.19 2,167,819 Trade
TRIP TripAdvisor Inc. 40.00 -0.17 -0.42 976,792 Trade
M Macys Inc. 19.71 -0.43 -2.13 7,818,901 Trade
NE Noble Corporation (UK) 3.25 0.02 0.46 2,221,149 Trade
MCO Moody\'s Corporation 132.27 0.18 0.14 249,487 Trade
NFX Newfield Exploration Company 25.27 0.08 0.32 472,449 Trade
PXD Pioneer Natural Resources Company 132.04 0.41 0.31 407,802 Trade
GUORF GuocoLeisure Ltd 0.50 0.00 0.00 0

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