Stocks End Lower As Chinese, European Data Renews Worries Over Economic Growth

4:09 PM, Apr 23, 2012 -- U.S. stocks finished lower today following disappointing global economic data and anxiety about Europe's debt crisis unnerved traders. All 10 industry sectors in the S&P 500 ended lower, with the steepest losses among commodity producers as well as consumer stocks. Financial stocks also sagged.

In France, incumbent president Nicolas Sarkozy this weekend was forced into a run-off election after finishing in second place behind opposition candidate Francois Hollande. Also, Dutch Prime Minister Mark Rutte offered to resign today after budget talks fell apart when a right-wing coalition partner quit. The move will likely trigger early elections and rekindled speculation the country might lose its AAA credit rating.

Chinese manufacturing contracted this month, according to a preliminary reading of an index based on a survey of purchasing managers by HSBC Holdings Plc and Markit Economics. The April reading came in at 49.1, compared with a final 48.3 score in March. A similar survey for euro-area economies fell to a five-month low, falling to 47.4 from a 49.1 reading in March, Markit reported in an initial reading reported today. Readings below 50 indicate contraction.

In company news, Wal-Mart Stores Inc (WMT) slid more than 4% today, weighing on the Dow Industrials index throughout the session, after the New York Times yesterday reported top executives at the retailer may have stymied an internal investigation into allegations of extensive bribery at its Mexican subsidiary.

The allegations more than overshadowed positive results for office equipment company Xerox Corp (XRX) and homebuilder D.R. Horton Inc (DHI) today. Shares of both firms rose, with XRX reporting Q1 earnings of $0.23 a share on $5.5 billion in revenues, topping estimates. DHI said its fiscal Q2 earnings were $0.13 a share, ex items, compared to a $0.04 a share profit seen by analysts in a Thomson Reuters survey.

So far, earnings during the January-to-March reporting season have been solid, with more than 80% of S&P 500 companies topping consensus profit estimates, according to Thomson Reuters.

But Kellogg Co (K) slid after trimming its full-year profit view due to slower-than- expected Q1 results driven by declines in its European business and weak volume growth for certain U.S. categories. The company now sees reported earnings in a range between $3.18 to $3.30 a share, excluding the effect of its recent acquisition of Pringles which could reduce earnings this year by as much as $0.11 a share. The Street is at $3.48 a share.

Commodities ended lower, although crude oil prices bounced back from a 2% decline earlier in the day to finish at $103.11 a barrel, down 77 cents and helping limit losses today for energy stocks. Natural gas also enjoyed one of its better days in several weeks, with the May contract rising 8 cents to $2.007 per 1 million British thermal units. May copper also slid, falling 7.3 cents to settle at $3.6230 per pound following the Chinese and European data reports. Gold and silver also fell.

Here's where the markets stand at end-of-day:

Dow Jones Industrial Average is down 102.09 (-0.78%) to 12,927.17

S&P 500 is down 11.59 (-0.84%) to 1,366.94

NASDAQ Composite Index is down 30 (-1.00%) to 2,970.45

GLOBAL SENTIMENT

Hang Seng Index down 1.84%

China Shanghai Composite Index down 0.76%

FTSE 100 down 1.85%

UPSIDE MOVERS

(+) RDEA, Agreed to $1.26-billion buyout by AstraZeneca.

(+) AMLN, Reportedly seeking buyers after rejecting $3.5-billion buyout by Bristol-Myers Squibb.

(+) KERX, Reports positive top-line results for new kidney drug in Phase III trial

DOWNSIDE MOVERS

(-) OTT, Said Time Warner Cable unlikely to renew wholesale network contract next year.

(-) ACHN, Clarifies Phase IIa trial data for Hepatitis C drug.

(-) COP, Q1 earnings fall 3% due to lower production and weaker refining margins.