U.S. stocks lower on factory orders, China; Dow down 0.11%
Published Mar 05, 2012 04:37PM ET
At the close of U.S. trade, the Dow Jones Industrial Average fell 0.11%, the S&P 500 gave back 0.39% and the Nasdaq Composite tumbled 0.86%.
The stock negative sentiment was fuelled by China reducing its growth target to 7.5% in 2012, marking the lowest number since 2004.
This reduction stroked fears of lessening demand for American goods and services in the world’s second largest economy
China will also aim for inflation to remain steady at 4%, unchanged from its 2011 goal.
In Greek news, investors are awaiting to determine how many private investors agree to write down their sovereign debt holdings by the March 8 deadline.
Greece has set a 75% participation rate as the limit for proceeding with the transaction. Private investors will forgive Greece 53.5% of their principal and swap their remaining holdings for new Greek bonds and notes from the European Financial Stability Facility.
This is causing much trepidation as Germany’s DSW investor protection group has advised private creditors to reject the offer.
Meanwhile, in the United States, the Institute for Supply Management’s index of non manufacturing industries advanced to 57.3 in February from an earlier reading of 56.8.
In additional U.S. news, factory orders gave back 1% in January after a revised 1.4% gain in December that was larger than previously estimated.
American International Group advanced 2% after announcing it is selling USD6 billion of AIA Group to repay government bailout funds.
Big Lots gained the most in the S&P 500 climbing 3.4% after the discount retailer was upgraded to buy at Northcoast Research Holdings.
Keryx Biopharmaceuticals surged 34% on positive word on a new cancer drug.
Pandora Media advanced 5.5% after the online music service was upgraded to buy at Stifel Nicolaus.
In bearish news, Facebook game designer Zynga dropped 4.9% after being slashed to neutral at J.P. Morgan Chase.
Investors are awaiting Australia’s interest rate decision, U.K. retail sales and Canadian manufacturing activity on Tuesday.
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Written By: Investing.com
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