• Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

  • Don't take us for fools

    It's time for businesses to stop thinking consumers are gullible, says Mandi Smallhorne.

All data is delayed
See More

US stocks lower after ECB rate cut

Jul 06 2012 08:10

New York - US stocks ended lower on Thursday, shrugging off moves by central banks in China and Europe to boost growth and honing in on US data showing weakness in consumer spending.

The Dow Jones Industrial Average ended down 47.15 points to 12,896.67.

The S&P 500-stock index lost 6.44 to 1,367.58, while the tech-rich Nasdaq added a bar 0.04 points to 2,976.12.

Stocks had risen on Tuesday - markets were closed on Wednesday - in anticipation that the European Central Bank would cut interest rates and the Bank of England would boost stimulus efforts.

The Bank of China joined in Thursday with its own surprise rate cut.

"These actions are all related to disappointing economic conditions that might otherwise be producing downward pressure on prices," said Dick Green of Briefing.com.

But US markets showed more concern about the ICSC June sales report showing same-store sales for big retailers excluding Walmart were only up 0.2% from a year ago - a third straight month of weak growth.

"The second quarter is proving to be a real downer for retailers and consumers alike," said Chris Christopher at IHS Global Insight.

Costco lost 0.4%, Target was down 1.1% and Rite Aid 3.5% on disappointing sales.

Energy shares also pulled lower. ExxonMobil lost 0.8%, Chevron 1.3%, and ConocoPhillips 2.0%.

The Libor rate-fixing scandal cast a shadow over banks involved fixing the US dollar Libor.

JPMorgan Chase fell 4.2%, Citigroup, 2.9%, and Bank of America lost 3.0%.

Google was up 1.4% and Apple 1.8% after The Wall Street Journal reported that Apple is preparing to launch a smaller tablet computer in a bid to maintain its edge in the hot market.

Netflix soared 13.4% after the company said streaming service had grown faster than forecasts.

Bond prices edged higher. The yield on the 10-year Treasury fell to 1.60% from 1.63% on Tuesday, while the 30-year yield moved to 2.72% from 2.74%.

Bond prices and yields move in opposite directions.

wall street  |  markets



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote