By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market extended losses
Thursday, as investors found little solace from generally positive
economic reports, sending the S&P 500 into negative territory
for the year.
The fourth-quarter GDP was revised upward to 2.6%, slightly
below the consensus of 2.8%. Weekly jobless claims fell by more
than expected to the lowest level in four months.
A number of Fed officials are scheduled to speak.
The S&P 500 (SPX) fell 9 points, or 0.5%, to 1,842.94,
falling below a key support level of 1,850. The benchmark index
also turned lower for the year. The Dow Jones Industrial Average
(DJI) dropped 67 points, or 0.4%, to 16,201.94.
The Nasdaq Composite (RIXF) shed 41 points, or 1%, to
4,132.04.
Follow MarketWatch's live blog of Thursday's stock-market
action.
Investors shrugged off better-than-expected data on the strength
of the economy. Government data showed that the economy's growth in
the fourth quarter was bumped up to 2.6%, mainly because of higher
health-care spending, while weekly unemployment benefits fell to
the lowest level in four months, offering further evidence U.S.
layoffs have slowed sharply and perhaps a hint that hiring is about
to pick up.
Pending-home sales data for February will be released at 10 a.m.
Eastern.
Among today's Fed officials scheduled to speak, Cleveland Fed
president Sandra Pianalto spoke ahead of the market open.
In a speech at the University of Dayton Pianalto said "no single
data point will determine how long the Federal Reserve can keep
short-term interest rates low."
"We will be watching labor market conditions, indicators of
inflation pressures and inflation expectations, and readings on
financial developments. It is a complicated world out there,"
Pianalto said.
New York Fed President William Dudley will speak on lessons from
"three decades of crises" in New York at 2:30 p.m. Eastern.
Later, Fed Gov. Daniel Tarullo will speak on foreign bank
regulation at Harvard Law School in Cambridge, Mass. at 8:20 p.m.
Eastern, and Chicago Fed President Charles Evans will speak in Hong
Kong about U.S. economic policy at 9:30 p.m. Eastern.
Citigroup slumps after Fed rejects its capital plan
Citigroup (C) shares fell 4.6% after the bank failed to measure
up to the Federal Reserve's stress-test requirements. Citi wasn't
the only bank to be told late Wednesday that it needs to shore up
its capital plans, but it was the biggest, and the news seemed to
catch investors -- and the bank -- off guard.
Baxter International Inc. (BAX) shares rose 5.4% after the
company said Thursday it plans to split into two entities, one
focused on developing and marketing biopharmaceuticals and the
other on medical products.
Lululemon(LULU) shares jumped 9.1% after posting a steady profit
and higher revenue, but downside guidance.
GameStop (GME) shares fell 6.8% after the company reported
quarterly results below consensus estimates.
Gold fall below $1,300; European stocks fall
In other markets, gold prices (GCJ4) fell below the key
$1,300-an-ounce level ahead of GDP data, while oil (CLM4) pushed
higher.
European stocks struggled and moved lower, while Asia saw a
mixed day, with the Nikkei 225 index jumping 1% as the dollar
(USDJPY) rose back above 102 yen. Media reports also pointed to
reinvestment by a public pension fund for those Japan gains. The
Shanghai Composite Index closed down 0.8%, which came amid reports
the central bank has drained liquidity again.
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