Investing.com - U.S. stocks closed mixed Wednesday, on weak housing data amid fresh speculation that the Federal Reserve may implement further easing measures, while concerns over the debt crisis in the euro zone continued to weigh.
At the close of U.S. trade, the Dow Jones Industrial Average advanced 0.47%, the S&P 500 index slipped 0.03% lower while the Nasdaq Composite index dropped 0.31%.
Lifting equity sentiment, ECB Governing Council member Nowotny said that there were some arguments in favor of giving the euro zone’s bailout fund, the European Stability Mechanism, a banking license, which would increase its firepower to fight debt crisis.
However, investors remained cautious as the yield on Spanish 10-year government bonds remained above the 7.50% level, beyond the 7% threshold widely considered unsustainable in the long run, fuelling concerns that a full-scale sovereign bailout is inevitable.
Weighing on stocks, U.S. new home sales fell more-than-expected in June, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales fell by 8.4% to a seasonally adjusted 350,000 units in June, compared to expectations for a decline of 2.6% to 372,000.
New home sales for May were revised up to 382,000 units from a previously reported 369,000.
The median sales price of new houses sold in June was USD232,600.
Meanwhile, weak economic data out of German and the U.K. indicated that Europe’s largest economies are being affected by the debt crisis in the region.
Apple remained in the spotlight for the second consecutive session, with shares tumbling 3.56%, after the iPhone maker missed quarterly results by a wide margin and handed in current-quarter guidance that disappointed analysts.
In addition, at least three brokerages cut their price targets on the firm. Blackberry maker and rival Research In Motion saw shares surge 2.60% following the results.
Among other earnings, Caterpillar rallied 4.56% after topping profit expectations and boosting its 2012 earnings forecast.
Boeing also jumped 2.35% after the aircraft giant posted earnings that beat estimates as gains in airplane deliveries trumped higher pension costs.
Elsewhere, Symantec skyrocketed 13.84% after the security-software maker unexpectedly ousted its CEO Enrique Salem, under heavy criticism from investors for financial disappointments. Separately, the company announced a quarterly outlook that was below projections.
Financial stocks also contributed to gains, as U.S. lenders tracked their European counterparts sharply higher. Shares in Citigroup surged 2.26% and JP Morgan jumped 1.67%, while Bank of America and Goldman Sachs advanced 1.64% and 1.11% respectively.
On the downside, Netflix, the world’s largest video-subscription service, saw shares plummet 18.52% after it raised doubts over whether the company will meet its user growth targets this year.
Also in the Internet sector, Yahoo rose 0.49% after hedge fund manager Dan Loeb of Third Point purchased another 2.5 million shares of the company for about USD39.5 million.
Other stocks in focus included auto maker Ford, expected to report sharply lower quarterly earnings later in the day, hurt by sliding demand in Europe. In June, Ford said economic conditions in Europe had deteriorated sharply since the beginning of the year.
Visa, PepsiCo, Caterpillar, Eli Lilly, WellPoint, Boeing and Bristol-Myers Squibb were also scheduled to announce results later Wednesday.
At the close of European trade, the EURO STOXX 50 jumped 0.35%, France’s CAC 40 advanced 0.23%, while Germany’s DAX 30 climbed 0.25%.
Investors are awaiting U.S. initial jobless claims, durable goods, and Bloomberg’s consumer confidence numbers, as well as a speech by ECB president Mario Draghi on Thursday.
At the close of U.S. trade, the Dow Jones Industrial Average advanced 0.47%, the S&P 500 index slipped 0.03% lower while the Nasdaq Composite index dropped 0.31%.
Lifting equity sentiment, ECB Governing Council member Nowotny said that there were some arguments in favor of giving the euro zone’s bailout fund, the European Stability Mechanism, a banking license, which would increase its firepower to fight debt crisis.
However, investors remained cautious as the yield on Spanish 10-year government bonds remained above the 7.50% level, beyond the 7% threshold widely considered unsustainable in the long run, fuelling concerns that a full-scale sovereign bailout is inevitable.
Weighing on stocks, U.S. new home sales fell more-than-expected in June, official data showed on Wednesday.
In a report, the U.S. Census Bureau said new home sales fell by 8.4% to a seasonally adjusted 350,000 units in June, compared to expectations for a decline of 2.6% to 372,000.
New home sales for May were revised up to 382,000 units from a previously reported 369,000.
The median sales price of new houses sold in June was USD232,600.
Meanwhile, weak economic data out of German and the U.K. indicated that Europe’s largest economies are being affected by the debt crisis in the region.
Apple remained in the spotlight for the second consecutive session, with shares tumbling 3.56%, after the iPhone maker missed quarterly results by a wide margin and handed in current-quarter guidance that disappointed analysts.
In addition, at least three brokerages cut their price targets on the firm. Blackberry maker and rival Research In Motion saw shares surge 2.60% following the results.
Among other earnings, Caterpillar rallied 4.56% after topping profit expectations and boosting its 2012 earnings forecast.
Boeing also jumped 2.35% after the aircraft giant posted earnings that beat estimates as gains in airplane deliveries trumped higher pension costs.
Elsewhere, Symantec skyrocketed 13.84% after the security-software maker unexpectedly ousted its CEO Enrique Salem, under heavy criticism from investors for financial disappointments. Separately, the company announced a quarterly outlook that was below projections.
Financial stocks also contributed to gains, as U.S. lenders tracked their European counterparts sharply higher. Shares in Citigroup surged 2.26% and JP Morgan jumped 1.67%, while Bank of America and Goldman Sachs advanced 1.64% and 1.11% respectively.
On the downside, Netflix, the world’s largest video-subscription service, saw shares plummet 18.52% after it raised doubts over whether the company will meet its user growth targets this year.
Also in the Internet sector, Yahoo rose 0.49% after hedge fund manager Dan Loeb of Third Point purchased another 2.5 million shares of the company for about USD39.5 million.
Other stocks in focus included auto maker Ford, expected to report sharply lower quarterly earnings later in the day, hurt by sliding demand in Europe. In June, Ford said economic conditions in Europe had deteriorated sharply since the beginning of the year.
Visa, PepsiCo, Caterpillar, Eli Lilly, WellPoint, Boeing and Bristol-Myers Squibb were also scheduled to announce results later Wednesday.
At the close of European trade, the EURO STOXX 50 jumped 0.35%, France’s CAC 40 advanced 0.23%, while Germany’s DAX 30 climbed 0.25%.
Investors are awaiting U.S. initial jobless claims, durable goods, and Bloomberg’s consumer confidence numbers, as well as a speech by ECB president Mario Draghi on Thursday.