US markets slid for a third consecutive session as housing data and a lowered forecast from Hewlett-Packard triggered worries of more economic weakness, although recent strength in corporate earnings helped shares to get of the boost, towards the end of the trading.
Hewlett-Packard guided the Dow Jones down following news that the giant PC maker suggested a lower estimate for the third quarter as well as for the whole year. The firm had a good first quarter results but the quarter ended April 30 cited the impacts of the Japanese disasters, weedy personal computer sales and falling operating profit for services.
Moreover, at least four of the brokerages cut HP ratings. Hewlett-Packard (NYSE:HPQ) shares led the bottom dwellers at Blue-chip, slumping 7.30%.
HP’s financial outcome were released a day before it was initially planned due to a leaked memo by CEO Leo Apotheker, which intimated managers of another tough quarter.
According to US federal department stats, builders initiated construction of new homes in smaller quantity during the month of April whereas permits also saw a downturn, showing no sign of improvement in the scruffy US housing industry.
The Commerce Department reported on Tuesday that housing starts slipped 10.60% on yearly rate of 523,000 in April, while starts in March were altered up to 585,000 from a real figure of 549,000.
Eeconomists had anticipated that housing starts to reach 575,000 on April on a seasonally adjusted basis. In a linked report, the Federal Reserve also reported on Tuesday that industrial production was almost flat throughout April.
Starts had averaged an inadequate 542,000 for the last quarter, representing a mere change in the declining US housing market. Meanwhile, economists weigh on a longer progressing average as the housing data often under goes steep fluctuations month to month.
The Dow Jones Industrial Average (INDEXDJX:DJI) dropped 68.79 points or -0.55% to close at 12,479.58. The index throughout for the trading hours remained down than the support line. The volume for the last session remained healthy at 192.71 million shares where as the index opened at the level of 12,541.33.
Hewlett-Packard Company led the blue chip index after the news that the tech giant cut its forecasts for the Q3 and for the full year.
Meanwhile, Home Depot (HD) was among index gainers following the home decorator topped earning estimates by 0.01 as stakeholders overlooked a drop in sales in comparison with last year stats. HD stated that bad weather impacted its sales.
Other notable shares of the companies included; Caterpillar (CAT) lost 3.80%, while Alcoa Inc. (AA), aluminum producer shares experienced a fall of 2.80%.
The S&P 500 Index (INDEXSP:INX) went down 0.04% or -0.49 points to settle at 1,328.98, , the lowest finish since April 19 and the third continuous day in red. The index experienced a lift to reach 1.330.36 and than towards the end it gave up several points. Among major S&P 500 sectors, industrials and materials dropped, whereas utilities moved forward.
The NASDAQ Composite Index (INDEXNASDAQ:IXIC) was the only sector which managed to gain during the last session by +0.03% or +0.90 points to 2,783.21. It achieved day’s low of 2,759.29 while the day’s high remained 2,783.61.
Index demonstrated a better monthly performance of +0.67% or +18.56 points which made it for a quarter with -48.37 points or -1.71% but it presented solid performance of 18.59% or 436.36 for the year.
Wal-Mart (WMT) slid as investors paid attention on US same store sales results that declined 1.10%. The retailer individually, however, reported a better than projected profit.
Meanwhile, financial stocks were remained up as JPMorgan (NYSE: JPM) was among the leaders, increasing after the financial institutions annual shareholder meeting on Tuesday.
The stocks which added most for the session were eLong Inc. (LONG) while it followed by the Gulf Resources Inc (GFRE), Oilsands Quest Inc (BQI), MAKO Surgical Corp. (MAKO), Oxigene Inc (OXGN) and Sino Clean Energy Inc (SCEI) during the last trading session. GFRE soared 57.68% to close the day’s trading at $4.18 while its volume reached 8.50 million shares.
Bank of America Corporation (NYSE:BAC) was among the top volume gainers for the session with 144.66 million shares. Joining the list was SIRI, SPY, HPQ, INTC and XLF.
The dollar shed some of its earlier gains versus a basket of key currencies, after dealing at higher prices early in the session.
The dollar’s down fall relaxed losses in oil prices as light sweet crude fell 0.50% to settle $96.91 per barrel, while Brent crude declined 0.80 percent to $109.99. Considerable precious metals also declined as gold prices fall to reach $1,479.80 per ounce and silver ended the North American session at $34.49.
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