Stocks end lower after Dow, S P 500 hit records
David Carrig, USA TODAY 4:49 p.m. EDT September 4, 2014
Traders work on the floor of the New York Stock Exchange.(Photo: Spencer Platt, Getty Images)
Stocks cut early gains and turned negative to close modestly lower Thursday, dropping from earlier highs that saw the Standard & Poor's 500 and the Dow Jones industrial average hit new intraday record highs.
Gains were initially fueled by moves the European Central Bank took to stimulate the struggling eurozone economy and continued signs of an improving U.S. economy.
But in a trading pattern similar to the previous session, major indexes were unable to hold onto their gains and pulled back.
The Dow finished down 8.70 points to 17,069.58, after earlier hitting an all-time intraday high of 17,161.55.
The S&P 500 dropped 3.07 points, 0.2%, to end at 1997.65, after setting an intraday record of 2011.17. The tech-laden Nasdaq composite fell 10.28 points, 0.2%, to close at 4562.29.
Also Thursday, the yield on the benchmark 10-year Treasury note rose to 2.46% from 2.4% a day earlier. Oil prices fell 96 cents to close at $94.59.
The European Central Bank took several steps to help boost the eurozone's economy[1] as it cut a key short-term interest rate and said it plans to start buying asset-backed bonds.
Europe's single currency fell on the news, dropping 1.6% to $1.2939. It was the euro's lowest level vs. the dollar since July 2013.
Investors were also digesting a batch of economic reports on the service sector[2], jobs[3], productivity[4] and trade[5].
• Service sector growth rose to a six-year high[6] in August as economic activity in the nation's non-manufacturing sector grew for the 55th consecutive month.
• The private sector added 204,000 jobs in August[7], according to payroll processor ADP. That was below estimates but still represented a solid month of growth. Economist are expecting the Labor Department to report Friday that 220,000 private and public sector jobs were added in August.
• Worker productivity rose 2.3%[8] in the second quarter, rebounding from a big drop in the first quarter. Unit labor costs dipped 0.1%.
European markets reacted positively to the ECB rate cut as Germany's DAX index rose 1% to 9724.26, France's CAC 40 index surged 1.7% to 4494.94 and Britain's FTSE 100 added 0.1% to 6877.97.
In Asia, Japan's Nikkei 225 lost 52.17 points, or 0.3%, to fall to 15,676.18 and Hong Kong's Hang Seng index fell 20.03 points, or 0.1% to 25,297.92, while the Shanghai Composite rose 18.23 points, or 0.8%, to 2,306.86.
Wednesday, stocks were mixed[9] as the S&P 500 fell 1.56 points, or 0.1%, to 2000.72 and the Nasdaq slid 25.62, or 0.6% to 4572.57. The Dow gained 10.72 points, or 0.1%, to close at 17,078.28.
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References
- ^ http://americasmarkets.usatoday.com/2014/09/04/draghi-says-ecb-to-start-buying-asset-backed-bonds/ (americasmarkets.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/ism-non-manufacturing-service-sector/15039311/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/adp-employment-report-august/15038703/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/productivity-q2/15039687/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/trade-deficit-july/15038995/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/ism-non-manufacturing-service-sector/15039311/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/adp-employment-report-august/15038703/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/business/2014/09/04/productivity-q2/15039687/ (rssfeeds.usatoday.com)
- ^ http://www.usatoday.com/story/money/markets/2014/09/03/stocks-wednesday/15010307/ (rssfeeds.usatoday.com)