NEW YORK, Aug 20, 2010 (AFP)
Wall Street stocks ended mostly lower Friday as traders remained concerned over the pace of recovery of the US economy after weak data.
The Dow Jones Industrial Average closed down 57.59 points (0.56 percent) to 10,213.62, extending a second week in the red.
The tech-rich Nasdaq composite index parred earlier losses, gaining 0.81 points (0.04 percent) to 2,179.76, while the broader S&P 500 index shed 3.94 points (0.37 percent) to 1,071.69.
“The fallout from yesterday’s steep decline on lackluster US jobs and manufacturing data continues to sour economic sentiment and lasso the bulls,” analysts at Charles Schwab & Co said in a note.
Wall Street stocks slumped on Thursday, ending a two-day rally, after data showed the number of Americans filing new weekly claims for jobless benefits jumped unexpectedly to 500,000, the highest level in nine months.
Thursday’s jobless figures were the third straight week in which claims have risen, underscoring the threat posed by unemployment on the recovery from the worst US recession in decades.
The mood was further dampened when the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region had dropped during August.
Intel’s announcement Thursday that it will acquire Internet security firm McAfee for 7.68 billion dollars failed to stop the downward trend sparked by the weak government data.
Among shares in focus was Hewlatt-Packard, which fell nearly 2.23 percent even after the computer manufacturing heavyweight reported a rise in net quarterly profit.
HP competitor Dell, which also reported on Thursday a climb in its second-quarter profit on surging demand for computer hardware, saw its shares trade slightly higher at 0.25 percent.
The bond market closed lower.
The yield on the 10-year US Treasury bond was up to 2.612 percent from 2.579 percent Thursday while that on the 30-year bond rose to 3.661 percent from 3.657 percent. Bond yield and prices move in opposite directions.