We have updated our privacy policy and terms & conditions. Find out more here.
13
 

U.S. stocks open sharply lower on Fed; Dow Jones tumbles 1.12%

By Investing.comStock MarketsJun 20, 2013 01:42PM GMT Add a Comment
 
AA
+
-

Investing.com - U.S. stocks opened sharply lower on Thursday, as comments by Federal Reserve Chairman Ben Bernanke signalling a possible near-term end to the Federal Reserve weighed despite the release of downbeat U.S. jobless data.

U.S. stocks open sharply lower on Fed; Dow Jones tumbles 1.12%
During early U.S. trade, the Dow Jones Industrial Average tumbled 1.12%, the S&P 500 index plummeted 1.25%, while the Nasdaq Composite index declined 1.15%.

The Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 18,000 to a seasonally adjusted 354,000, a three-week high, compared to expectations for an increase of 4,000 to 340,000.

Stocks came under pressure earlier after Fed Chairman Ben Bernanke on Wednesday said the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.

Sentiment was also hit after data earlier showed that China’s HSBC preliminary manufacturing purchasing managers’ index fell to a nine month low of 48.3 in June from 49.2 in May as new orders fell, indicating that the slowdown in manufacturing is worsening.

Microsoft shares tumbled 1.45% amid reports the tech giant had planned to acquire Finland's Nokia, but talks broke down.

Separately, Microsoft announced a major change to its Xbox One late Wednesday, saying it will no longer require an internet connection to play offline games.

Adding to losses, Men’s Wearhouse retreated 1.54%, after the company ousted its founder and exectutive chairman George Zimmer following repeated clashes over strategy with Chief Executive Officer, Douglas Ewert.

Elsewhere, Jabil Circuit plunged 4.09% after reporting late Wednesday a steep drop in quarterly profits.

On the upside, Facebook added 0.25% as it was preparing to host a press event at its headquarters on Thursday. The social network giant was widely expected to announce a video function for its photo-sharing app, Instagram.

Other stocks in focus included Oracle, scheduled to post earnings after the closing bell.

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.51%, France’s CAC 40 plunged 2.55%, Germany's DAX retreated 2.45%, while Britain's FTSE 100 tumbled 2.30%.

During the Asian trading session, Hong Kong's Hang Seng Index sank 2.88%, while Japan’s Nikkei 225 Index tumbled 1.74%.

Later in the day, the U.S. was to release data on existing home sales and the Philly Fed manufacturing index.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

NQ 100
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg