(RTTNews) - Stocks closed significantly lower on Thursday, as newly proposed financial regulations from the White House and a muddled economic outlook drove traders out of the markets. The major averages all saw heavy losses, pulling back further off the more than one-year highs set earlier in the week. The Dow fell by more than 213 points, adding to the 122 point loss posted on Wednesday.
Traders pulled capital out of the stocks markets this morning amid concerns about remarks from President Barack Obama, who proposed fresh regulations for the financial industry that he said are aimed at protecting the consumer and the economy. The large financial companies led the way lower on the news.
Obama said the proposed rules would close loopholes that allowed firms to trade in risky products without oversight, strengthen capital and liquidity requirements to make the system more stable and ensure that the failure of any single institution will not pose a risk to the financial system as a whole.
Also this morning, traders were presented with another mixed batch of economic data, which was unsuccessful in indicating a clear direction for the U.S. economy.
The Federal Reserve Bank of Philadelphia released a report showing a bigger than expected slowdown in the pace of growth in regional manufacturing activity in January, while the Conference Board revealed that its leading economic indicators index rose for the ninth consecutive month in December.
Traders pulled capital out of the stocks markets this morning amid concerns about remarks from President Barack Obama, who proposed fresh regulations for the financial industry that he said are aimed at protecting the consumer and the economy. The large financial companies led the way lower on the news.
Obama said the proposed rules would close loopholes that allowed firms to trade in risky products without oversight, strengthen capital and liquidity requirements to make the system more stable and ensure that the failure of any single institution will not pose a risk to the financial system as a whole.
Also this morning, traders were presented with another mixed batch of economic data, which was unsuccessful in indicating a clear direction for the U.S. economy.
The Federal Reserve Bank of Philadelphia released a report showing a bigger than expected slowdown in the pace of growth in regional manufacturing activity in January, while the Conference Board revealed that its leading economic indicators index rose for the ninth consecutive month in December.
Additionally, the Labor Department reported that first time claims for unemployment benefits unexpectedly rose in the week ended January 16th, although the headline figure was significantly impacted by seasonal factors.
Earnings also garnered some attention today, as financial services firm Goldman Sachs (GS) reported a profit for the fourth-quarter compared to a loss in the previous year, helped by a surge in revenues at its investment banking as well as trading and principal investment operations. The firm's bottom line trounced analyst estimates, while revenues fell just short of expectations.
The major averages all saw choppy movement in late-session dealing, remaining firmly in the red. The Dow fell 213.27 points or 2 percent to 10,389.88, the Nasdaq dropped by 25.55 points or 1.1 percent to 2,265.70 and the S&P 500 declined by 21.56 points or 1.9 percent to 1,116.48.
In overseas trading, stock markets across the Asia-Pacific region closed mixed on Thursday. Japan's benchmark Nikkei 225 gained 1.2 percent, while Hong Kong's Hang Seng Index sank by 2 percent.
Earnings also garnered some attention today, as financial services firm Goldman Sachs (GS) reported a profit for the fourth-quarter compared to a loss in the previous year, helped by a surge in revenues at its investment banking as well as trading and principal investment operations. The firm's bottom line trounced analyst estimates, while revenues fell just short of expectations.
The major averages all saw choppy movement in late-session dealing, remaining firmly in the red. The Dow fell 213.27 points or 2 percent to 10,389.88, the Nasdaq dropped by 25.55 points or 1.1 percent to 2,265.70 and the S&P 500 declined by 21.56 points or 1.9 percent to 1,116.48.
In overseas trading, stock markets across the Asia-Pacific region closed mixed on Thursday. Japan's benchmark Nikkei 225 gained 1.2 percent, while Hong Kong's Hang Seng Index sank by 2 percent.
(RTTNews) - Meanwhile, the major European markets all finished notably lower on the day. The U.K.'s FTSE 100 fell by 1.6 percent, while the French CAC 40 Index and the German DAX Index declined by 1.7 percent and 1.8 percent, respectively.
In the bond markets, treasuries saw notable gains amid the pullback on Wall Street. Subsequently, the yield on the benchmark ten-year note closed at 3.611 percent, falling by 4.8 basis points.
Steel stocks were some of the day's worst performers, resulting in a 5.8 percent pullback by the NYSE Arca Steel Index. With the decline, the index ended the session at its lowest closing level in roughly one month's time.
Gold, housing, commercial real estate and healthcare provider stocks also declined by substantial margins, reflecting today's broad-based sell-off.
In the bond markets, treasuries saw notable gains amid the pullback on Wall Street. Subsequently, the yield on the benchmark ten-year note closed at 3.611 percent, falling by 4.8 basis points.
Steel stocks were some of the day's worst performers, resulting in a 5.8 percent pullback by the NYSE Arca Steel Index. With the decline, the index ended the session at its lowest closing level in roughly one month's time.
Gold, housing, commercial real estate and healthcare provider stocks also declined by substantial margins, reflecting today's broad-based sell-off.
Health insurance stocks saw a particularly weak outing, driving the Morgan Stanley Healthcare Payor Index down by 2.6 percent. WellCare (WCG) was one of the sector's leading decliners, posting a loss of 6.1 percent. With the drop, the stock closed at its lowest price in roughly seven weeks.
On the other hand, some electronic storage stocks bucked the downtrend, with Seagate Technology (STX) closing up 9.7 percent after reporting a second quarter profit versus a year-ago loss. Some regional banks also ended the day notably higher despite the steep losses by the financial giants.
The economic calendar is light on Friday, with traders likely taking the day to further digest the week's news and tweak their positions for the following week.
Market giants Google (GOOG), Advanced Micro Devices (AMD), American Express (AXP) and Capital One (COF) are among the major companies that are likely to see movement tomorrow after reporting their quarterly results after the closing bell this afternoon.
by RTT Staff Writer
On the other hand, some electronic storage stocks bucked the downtrend, with Seagate Technology (STX) closing up 9.7 percent after reporting a second quarter profit versus a year-ago loss. Some regional banks also ended the day notably higher despite the steep losses by the financial giants.
The economic calendar is light on Friday, with traders likely taking the day to further digest the week's news and tweak their positions for the following week.
Market giants Google (GOOG), Advanced Micro Devices (AMD), American Express (AXP) and Capital One (COF) are among the major companies that are likely to see movement tomorrow after reporting their quarterly results after the closing bell this afternoon.
by RTT Staff Writer
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