US close: Stocks end lower amid growth concerns
US stocks ended lower on Tuesday as global growth concerns undermined investor sentiment following a batch of mixed data.
The Dow Jones Industrial Average fell 0.8%, while the S&P 500 and the Nasdaq both ended 1% lower.
Data from the Commerce Department showed the US trade deficit rose 2.6% to $47.1bn (£33.31bn) in February as a rebound in exports was offset by an increase in imports. Economists had expected a deficit of $46.2bn.
“The widening in the trade deficit to a six-month high of $47.1bn in February, from $45.9bn, means that net exports will be a drag on first-quarter GDP growth, which we now think was around 1.5% annualised (2.0% previous),” said Steve Murphy, US economist at Capital Economics.
Service industry activity figures were a lot cheerier, however, particularly when compared to soft Eurozone data released earlier in the day.
Markit’s final US business services purchasing managers' index rose to 51.3 in March from 49.7 in February and the 'flash' estimate of 51.0, back above the 50.0 mark that separates contraction from expansion. The reading was also better than the 51.0 economists had pencilled in.
ISM’s non-manufacturing services composite also beat forecasts, rising to 54.5 in March from 53.4 in February. Analysts had predicted a reading of 54.1.
Meanwhile, Chicago Federal Reserve President Charles Evans said in Hong Kong that the central bank has to be proactive and aggressive to reach its 2% target. The Fed's preferred annual measure of inflation came in flat at 1.7% in February.
Comments from International Monetary Fund managing director Christine Lagarde added to growth concerns after she said in a speech at a German university that risks to global growth were rising and urged the world’s economies to boost growth.
In commodities, oil futures settled lower after a volatile day, as government data showed a surprise fall in gasoline demand in the US in January and as market participants grew increasingly doubtful that global crude producers would reach an agreement to freeze production at a meeting on 17 April.
Saudi Arabia said on Friday it would only freeze production if Iran follows suit. However, Iran has ruled out freezing output until its production recovers to levels seen before its sanctions.
In company news, Allergan slumped after the US Treasury Department announced new rules to curb corporate tax inversion that could impact the drugmaker’s takeover by Pfizer Inc.
Walt Disney Co. fell after saying chief operating officer Thomas Staggs is set to leave the company.
Drugstore operator Walgreens Boots Alliance dropped after reporting quarterly sales that missed analysts’ estimates.
On the upside, Olive Garden parent Darden Restaurants advanced after posting better-than-expected adjusted quarterly profit.
Tesla Motors reversed losses to end higher despite the electric car maker failing to reach sales goals for its Model X.
In currencies, the dollar rose 0.80% against the pound, was flat versus the euro and 0.9% weaker against the yen.
S&P 500 - Risers
Newmont Mining Corp. (NEM) $27.30 +3.80%
Ensco Plc. (ESV) $9.78 +2.41%
Pfizer Inc. (PFE) $31.37 +2.12%
Pioneer Natural Resources Co. (PXD) $141.12 +1.94%
Rowan Companies plc (RDC) $15.94 +1.92%
PulteGroup Inc. (PHM) $17.51 +1.74%
Vertex Pharmaceuticals Inc. (VRTX) $84.16 +1.56%
eBay Inc. (EBAY) $24.39 +1.50%
Raytheon Co. (RTN) $126.02 +1.45%
Gilead Sciences Inc. (GILD) $95.58 +1.42%
S&P 500 - Fallers
Allergan plc (AGN) $235.93 -15.00%
Southwestern Energy Co. (SWN) $7.81 -8.23%
Baxalta Incorporated (BXLT) $38.50 -7.39%
First Solar Inc. (FSLR) $62.42 -7.17%
Endo International Plc (ENDP) $26.90 -5.32%
Baker Hughes Inc. (BHI) $39.37 -5.06%
Western Digital Corp. (WDC) $44.13 -4.63%
NRG Energy Inc. (NRG) $12.22 -4.61%
Spectra Energy Corp. (SE) $28.91 -4.56%
Urban Outfitters Inc. (URBN) $32.11 -4.32%
Dow Jones I.A - Risers
Pfizer Inc. (PFE) $31.37 +2.12%
Boeing Co. (BA) $127.04 +0.55%
Johnson & Johnson (JNJ) $108.96 +0.34%
Dow Jones I.A - Fallers
Cisco Systems Inc. (CSCO) $27.58 -1.99%
Unitedhealth Group Inc. (UNH) $127.01 -1.92%
Walt Disney Co. (DIS) $96.99 -1.71%
Microsoft Corp. (MSFT) $54.57 -1.55%
Goldman Sachs Group Inc. (GS) $155.36 -1.53%
JP Morgan Chase & Co. (JPM) $58.35 -1.44%
International Business Machines Corp. (IBM) $149.97 -1.38%
Travelers Company Inc. (TRV) $116.13 -1.22%
Apple Inc. (AAPL) $109.80 -1.19%
Exxon Mobil Corp. (XOM) $82.20 -1.15%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $255.47 +3.43%
Vertex Pharmaceuticals Inc. (VRTX) $84.16 +1.56%
eBay Inc. (EBAY) $24.39 +1.50%
Gilead Sciences Inc. (GILD) $95.58 +1.42%
Celgene Corp. (CELG) $102.13 +1.07%
Alexion Pharmaceuticals Inc. (ALXN) $148.03 +0.63%
Biogen Inc (BIIB) $265.62 +0.61%
Netflix Inc. (NFLX) $104.94 +0.57%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $193.72 +0.31%
Linear Technology Corp. (LLTC) $44.46 +0.09%
Nasdaq 100 - Fallers
Endo International Plc (ENDP) $26.90 -5.32%
Western Digital Corp. (WDC) $44.13 -4.63%
Vimpelcom Ltd Ads (VIP) $3.94 -4.14%
Akamai Technologies Inc. (AKAM) $53.15 -3.94%
Micron Technology Inc. (MU) $10.41 -3.61%
Walgreens Boots Alliance, Inc. (WBA) $83.35 -3.43%
Vodafone Group Plc ADS (VOD) $30.66 -3.40%
Mylan Inc. (MYL) $45.92 -2.77%
Baidu Inc. (BIDU) $183.80 -2.74%
Liberty Global plc Series C (LBTYK) $37.00 -2.68%