World Market Overview
Intel and General Electric both weighed heavily on the Dow Jones Industrial Average Thursday as U.S. stocks skidded broadly. The Dow fell 144.33, or 1.39%, to 10271.21, its lowest close since July 21. Intel was the measure's worst performer, after it agreed to pay a hefty premium for computer security software company McAfee.
The chip giant fell 69 cents, or 3.5%, to 18.90. McAfee soared 17.08, or 57%, to 47.01.
Some investors are worried that Intel is paying too steep a price for McAfee, whose shares it will buy for $48 each, a 60% premium to its close Wednesday.
Still, the lavish premium helped boost other stocks in the computer security software field. McAfee rival Symantec jumped 78 cents, or 6.2%, to 13.37.
Economically sensitive General Electric also weighed on the Dow. The company dropped 45 cents, or 2.9%, to 15.25, after jobless claims unexpectedly jumped to their highest level since November 2009 and a survey of business conditions in the Philadelphia region dropped into negative territory. The Nasdaq Composite fell 36.75, or 1.66%, to 2178.95, its first drop in four sessions.
The Standard & Poor's 500 share index slid 18.53, or 1.69%, to 1075.63, with all of its sectors closing in the red.
Leading the measure's broad decline, financials and materials slid as the economic data darkened prospects for a robust recovery.
Aluminum producer Alcoa fell 27 cents, or 2.5%, to 10.66. Manufacturing giant 3M shed 1.80, or 2.2%, to 81.81. Among financials, Bank of America dropped 30 cents, or 2.3%, to 13.02, while J.P. Morgan Chase declined 82 cents, or 2.2%, to 37.07.
And in an ominous sign for the broad market, the Dow Jones 20 Transportation Average, seen as an economic barometer, sank 103.18, or 2.39%, to 4216.87l. Shipping giant FedEx dropped 2.46, or 2.9%, to 81.58, while railroad company Union Pacific fell 1.50, or 2%, to 74.50.
European market
European shares ended with heavy losses Thursday after early gains inspired by strong U.K. retail sales and an improved forecast for German growth evaporated in the wake of weak U.S. economic data. The Stoxx Europe 600 index fell 1.4% to 253.90, having earlier gained as much as 0.7%.
Regional indexes also dropped, with the U.K.'s benchmark FTSE 100 index falling 1.7% to close at 5,211.29, the French CAC 40 index losing 2.1% to end at 3,572.40 and the German DAX 30 index ending the day down 1.8% at 6,075.13.
European markets erased much of their early gains after first-time jobless filings in the U.S. jumped to a nine-month record. Losses deepened after the Philadelphia Fed index unexpectedly dropped.
European data was more upbeat Germany's Bundesbank lifted its forecast for German growth in 2010 and said it saw little chance of a double dip recession in the U.S. U.K. retail sales figures, meanwhile, were a positive surprise. Sales growth of 1.1% in July easily outstripped the 0.6% forecast by economists.
Shares in U.K. supermarket operator Sainsbury held on to a 0.5% rise in London and rival Morrison Supermarkets added 1.9%.
Asian market
Asian stocks ended higher Thursday with real estate and consumer lender stocks rising in Japan on speculation that the central bank may introduce further monetary easing measures.
Japan's Nikkei Stock Average climbed 1.3% to 9,362.68, South Korea's Kospi added 1.0%, Taiwan's Taiex inched up 0.1%, China's Shanghai Composite Index rose 0.8% and Hong Kong's Hang Seng Index was up 0.2%. Real estate and consumer lender firms in Japan climbed after the Sankei Shimbun newspaper reported in its morning edition that the Bank of Japan may consider expanding its lending facility, rumors about which have been circulating in the market all week.
There was also talk that the BOJ might hold an emergency gathering before a reported upcoming meeting between Prime Minister Naoto Kan and BOJ Governor Masaaki Shirakawa on Monday. Mitsui Fudosan closed up 3.1% and Mitsubishi Estate ended 3.4% higher.
Consumer lenders like Takefuji and Acom rose 8.1% and 2.8% respectively as increased BOJ easing prospects raised hopes that capital raising costs may fall.
Commodities and base metals
Base metals generally closed lower on the London Metal Exchange Thursday after a trio of disappointing U.S. data releases weighed on market sentiment.
After a rally that saw the three month copper contract look to test $7,500 a metric ton late morning on the back of stronger equities and short covering the metal was stung by poor U.S. manufacturing and leading indicators, as well as a weak jobs data report.
It ended down 1.2%, at $7,300/ton. Tin, meanwhile, was the only metal to buck the trend, closing $100 higher, at $21,075/ton.
Crude oil futures prices settled at a six-week low Thursday, stung by a rash of disappointing U.S. economic data and the highest inventories in nearly 27 years.
Light, sweet crude oil for September delivery on the New York Mercantile Exchange settled down 99 cents, or 1.3%, at $74.43 a barrel, the lowest price since July 7.
The contract, which expires at Friday's settlement, has fallen in seven of the past eight days and in 10 of the past 12 after hitting a three month high near $83 a barrel on Aug. 4.
October crude, which is trading more actively than the September contract, settled down $1.01, or 1.3%, at $74.77 a barrel.
On the ICE, North Sea Brent crude for October delivery settled down $1.17, or 1.5%, at $75.30 a barrel.
Gold futures hit a seven week high after a flurry of disappointing economic data rejuvenated investors' recent flight to safety.
The most actively traded gold contract, for December delivery, rose $4.00, to settle at $1,235.40 an ounce on the Comex division of the New York Mercantile Exchange.