US close: Markets slide after ECB cuts interest rates and Yellen comments on jobs
US equities continued to slide after investors analysed the latest moves from the European Central Bank and responded to Federal Reserve chair Janet Yellen’s remarks on US jobs.
The Dow Jones Industrial Average closed down 252 points to 17,477.67, while the S&P 500 and the Nasdaq were 30 and 86 points lower respectively.
Yellen told Congress’ Joint Economic Committee that the US economy needs to add fewer than 100,000 jobs a month to cover new entrants to the workforce, Reuters reported.
“To simply provide jobs for those who are newly entering the labour force probably requires under 100,000 jobs per month," she said ahead of the November jobs report due out Friday afternoon UK time.
On the macroeconomic front, the Department of Labour said new unemployment claims rose by 9,000 to 269,000 in the week to 28 November, compared with analysts' expectations for a 270,000 reading.
"The trend in claims is consistent with payroll growth in excess of 250,000 but in the short-term the numbers can diverge widely," said Ian Shepherdson chief economist at Pantheon Macroeconomics.
Meanwhile, the Institute for Supply Management's (ISM) non-manufacturing index, which surveys the sector's purchasing and supply executives, tumbled to 55.9 from 59.1 in October and compared with analysts’ expectations for a 58 reading.
Orders for US durable goods also declined but less than expected last month.
According to the Commerce Department, orders for long-lasting goods rose 2.9% in October compared with 3% increase registered in the previous month.
Meanwhile US factory orders rose slightly more than expected in October, up 1.5% in compared with analysts’ expectations for a 1.4% gain and a 1% decline in the previous month.
In company news, Yahoo slid 3.67% after a number of firms have emerged as potential suitors for the group’s core internet business.
Dollar General climbed 4.24% after its quarterly profit beat expectations but sales fell short of consensus.
According to sources cited by the Wall Street Journal, IAC/InterActive and Verizon Communications are among the companies interested.
Oil prices rebounded as OPEC’s two-day meeting kicked off in Vienna, with West Texas Intermediate rising 3.25% to $41.24 a barrel, while Brent jumped 3.46% to $43.96 a barrel.
S&P 500 - Risers
Avago Technologies Ltd. (AVGO) $144.78 +9.51%
Newmont Mining Corp. (NEM) $18.73 +4.93%
Kroger Co. (KR) $39.91 +4.72%
Dollar General Corp (DG) $68.12 +4.24%
Broadcom Corp. (BRCM) $57.00 +4.01%
Keurig Green Mountain Inc (GMCR) $54.30 +3.51%
Diamond Offshore Drilling Inc. (DO) $22.54 +3.02%
VeriSign Inc. (VRSN) $92.04 +2.83%
Kohls Corp. (KSS) $47.39 +2.09%
Western Digital Corp. (WDC) $63.62 +1.96%
S&P 500 - Fallers
Chesapeake Energy Corp. (CHK) $4.87 -11.78%
PVH Corp. (PVH) $83.02 -11.09%
Southwestern Energy Co. (SWN) $8.19 -7.46%
Urban Outfitters Inc. (URBN) $20.98 -6.55%
Vertex Pharmaceuticals Inc. (VRTX) $122.06 -6.40%
Marathon Petroleum Corporation (MPC) $54.44 -6.15%
Williams Companies Inc. (WMB) $33.26 -6.05%
Principal Financial Group (PFG) $48.20 -5.79%
Devon Energy Corp. (DVN) $41.10 -5.58%
Wynn Resorts Ltd. (WYNN) $65.08 -4.99%
Dow Jones I.A - Risers
Wal-Mart Stores Inc. (WMT) $59.04 +1.18%
General Electric Co. (GE) $30.03 +0.20%
Dow Jones I.A - Fallers
Travelers Company Inc. (TRV) $111.29 -2.98%
Nike Inc. (NKE) $129.12 -2.66%
Goldman Sachs Group Inc. (GS) $185.20 -2.66%
Merck & Co. Inc. (MRK) $52.59 -2.29%
Intel Corp. (INTC) $34.04 -2.27%
Unitedhealth Group Inc. (UNH) $115.00 -2.24%
Home Depot Inc. (HD) $130.93 -2.15%
Caterpillar Inc. (CAT) $69.64 -1.96%
Walt Disney Co. (DIS) $111.89 -1.85%
Microsoft Corp. (MSFT) $54.20 -1.83%
Nasdaq 100 - Risers
Avago Technologies Ltd. (AVGO) $144.78 +9.51%
Broadcom Corp. (BRCM) $57.00 +4.01%
Keurig Green Mountain Inc (GMCR) $54.30 +3.51%
Western Digital Corp. (WDC) $63.62 +1.96%
Costco Wholesale Corp. (COST) $163.67 +1.60%
CA Inc. (CA) $28.28 +0.86%
Priceline Group Inc (PCLN) $1,280.08 +0.36%
Tesla Motors Inc (TSLA) $232.71 +0.31%
TripAdvisor Inc. (TRIP) $83.14 +0.27%
Symantec Corp. (SYMC) $19.71 +0.25%
Nasdaq 100 - Fallers
Vertex Pharmaceuticals Inc. (VRTX) $122.06 -6.40%
Incyte Corp. (INCY) $106.83 -6.17%
Wynn Resorts Ltd. (WYNN) $65.08 -4.99%
PACCAR Inc. (PCAR) $48.79 -4.80%
Celgene Corp. (CELG) $106.55 -4.38%
Alexion Pharmaceuticals Inc. (ALXN) $168.85 -4.38%
Stericycle Inc. (SRCL) $113.64 -4.32%
Tractor Supply Company (TSCO) $85.66 -4.18%
Illumina Inc. (ILMN) $174.14 -4.11%
Cognizant Technology Solutions Corp. (CTSH) $61.67 -3.70%