Investing.com - U.S. stocks closed lower Wednesday,plunging to a seven week low, despite the Federal Reserve vowing to keep interest rates low, as the central bank stated unemployment remains a concern.
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.19%, the S&P 500 index dropped 0.35%, while the Nasdaq Composite index gave back 0.29%.
Sentiment remained under pressure after preliminary data showed that manufacturing activity in the euro zone contracted at a faster-rate-than-expected in October, shrinking for the 14th consecutive month.
Markit said that its preliminary manufacturing purchasing managers’ index fell to a seasonally adjusted 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.
In the U.S., Markit said that its preliminary manufacturing PMI rose to a seasonally adjusted 51.3 in October from a final reading of 51.1 in September, which was the lowest in three years.
Analysts had expected the index to ease up to 51.6 in October.
The Federal Reserve stated that the economy is still modestly growing but unemployment remains elevated and it will keep interest rates low for the foreseeable future.
Facebook saw shares soar 20.51%, after the social media giant reported on Tuesday that sales rose 32% to USD1.26 billion in the third quarter, compared with the average estimate of USD1.23 billion.
Also in the Internet field, social-game maker Zynga climbed 0.83% after saying it will cut 5% of its workforce, shut offices and end more than a dozen titles to compensate for slowing sales growth.
Shares in Netflix, the world’s largest online video service, plunged 13.44% on the other hand, as domestic streaming growth missed analysts’ projections.
Elsewhere, Boeing jumped 1.48% after it posted earnings that topped expectations and revenue that matched forecasts. In addition, the company lifted its forecast for the full year.
Fellow Dow component AT&T was on the downside however, with shares dropping 0.57% even as the company reported a profit that beat expectations, helped by strong revenue from its wireless operations.
Other stocks in focus included Kimberly-Clark and Bristol-Myers Squibb, due to report earnings later in the day.
At the close of European trade, the EURO STOXX 50 climbed 0.51%, France’s CAC 40 advanced 0.59%, while Germany’s DAX 30 rose 0.27%.
Investors are awaiting initial jobless claims and core durable goods on Thursday.