2/22/2012 4:31 PM ET
(RTTNews) - Stocks moved mostly lower over the course of the trading day on Wednesday, although selling pressure was relatively subdued. Lingering concerns about the outlook for the European economy weighed on the markets once again.
The major averages posted modest losses on the day after ending the previous session mixed. The Dow edged down 27.02 points or 0.2 percent to 12,938.67, the Nasdaq fell 15.40 points or 0.5 percent to 2,933.17 and the S&P 500 slipped 4.55 points or 0.3 percent to 1,357.66.
The weakness on Wall Street was partly due to the release of a report showing a contraction in private sector activity in the eurozone, which added to recent concerns about a recession.
The report from Markit Economics revealed that its index of private sector activity in the eurozone unexpectedly dipped below the '50' cut-off mark to 49.7 in February.
A separate report showing the fourth consecutive monthly contraction in Chinese manufacturing activity also generated some negative sentiment.
Traders also reacted to news that Fitch Ratings downgraded Greece's credit rating to 'C' from 'CCC' following yesterday's Eurozone agreement on a second bailout for the country. Fitch said a default is highly likely in the near term.
Disappointing earnings news also contributed to the pullback by stocks, with shares of Dell (DELL) falling by 5.8 percent after the computer maker reported weaker than expected fourth quarter earnings.
After the close of trading on Tuesday, Dell reported fourth quarter adjusted earnings of $0.51 per share, a penny below analyst estimates. The company also issued disappointing revenue growth guidance for the first quarter.
Luxury homebuilder Toll Brothers (TOL) also came under pressure after reporting a first quarter loss of $0.02 per share compared to analyst estimates for a profit of $0.02 per share. The company also reported weaker than expected revenues.
Meanwhile, Brocade (BRCD) rose by 2.7 percent after reporting better than expected first quarter earnings and issuing in-line guidance for its second quarter.
In U.S. economic news, the National Association of Realtors released a report showing a notable increase in existing home sales in the month of January, although the report also showed a significant downward revision to the data for December.
Sector News
Banking stocks showed a notable move to the downside on the day, contributing to the pullback by the broader markets. Reflecting the weakness in the banking sector, the KBW Bank Index fell by 2 percent, pulling back further off Monday's six-month closing high.
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