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Wall Street Tumbles On Flat Economic Data

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
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.
Michael Teague is a staff writer for Equities.com. His previous experience includes three years as the associate editor of Los Angeles-based Al Jadid Magazine, a bi-annual review of the arts & culture of the Middle East, where he contributed many articles on the region in the form of features and book & film reviews. His educational background includes a BA in French literature from the University of California, Irvine, where he developed a startling proclivity for anything having to do with the 19th century.

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.