Connect to share and comment

US stocks mostly down on weak Japan data

PlacardEnlarge
(Globalpost/GlobalPost)

US stocks extended last week's losses in early trade Monday, moving mostly lower on the heels of disappointing economic data out of Japan.

An hour into trade, the Dow Jones Industrial Average dropped 25.11 (0.16 percent) to 15,400.40.

The broad-based S&P 500 dipped 3.25 (0.19 percent) to 1,688.17, while the tech-rich Nasdaq Composite Index added 4.13 (0.11 percent) at 3,664.24.

Earlier Japan reported that economic growth in the second-quarter came in at a 2.6 percent annual pace, down from 3.8 percent in the first quarter.

The Japan news disappointed investors, who have seen the world's third-biggest economy as a strong growth story in 2013 following aggressive stimulus moves.

JPMorgan Chase dropped 1.3 percent on reports that two former employees could soon be indicated for their actions leading up to the bank's $6.2 billion 2012 London "whale" trading loss. JPMorgan is also in talks with US securities regulators to settle civil charges in the matter.

Technology giant Apple advanced 1.8 percent after the International Trade Commission Friday ordered an import ban on some Samsung smartphones and tablet computers due to violations of Apple patents.

Struggling Samsung and Apple rival BlackBerry meanwhile jumped 5.6 percent higher after announcing that it is exploring strategic alternatives, including a possible sale of the company.

Food industry services company Sysco fell 5.5 percent after reporting an 8.5 percent drop in quarterly profits to $283.0 million. The company cited weak restaurant traffic that plagued many of its customers, depressing profits.

Aviation equipment supplier Rockwell Collins lost 3.4 percent after announcing the $1.4 billion acquisition of Arinc from the Carlyle Group. Arinc specializes in electronic communications in aviation.

Bond prices rose. The yield on the 10-year US Treasury slipped to 2.56 percent from 2.58 percent Friday, while the 30-year fell to 3.62 percent from 3.64 percent. Bond prices and yields move inversely.

jmb/pmh

http://www.globalpost.com/dispatch/news/afp/130812/us-stocks-mostly-down-weak-japan-data