By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks sold off on Thursday
sending the main indexes below key support levels. The benchmark
S&P 500 index breached the psychologically important 1,850
level, while the Dow Jones Industrial Average dropped below its
50-day moving average.
It appears fears over the escalation of conflict between Ukraine
and Russia as well as a slowdown in China outweighed upbeat
domestic economic data.
The S&P 500 (SPX) was down 18 points, or 1%, at 1,850.05,
testing a psychologically important 1,850 level. Technology and
energy sector stocks were leading losses on the benchmark
index.
The Dow Jones Industrial Average (DJI) dropped 179 points, or
1.1%, to 16,161.91, with 27 of 30 stocks trading lower. United
Technologies Corp and Pfizer Inc were leading losses.
The Nasdaq Composite (RIXF) lost 57 points, or 1.3%, to
4,284.34.
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Doug Cote, chief market strategist at ING U.S. Investment
Management said that this market has been showing resilience.
"Stocks should be down a lot more than they are in the face of
events in Ukraine and China. Markets filed those events as
idiosyncratic risks and systemic risk is off the table," he
said.
Investors appeared to ignore a pair of better-than-expected
economic reports, which showed a surprise drop in a number of
people claiming unemployment benefits and an uptick in retail sales
in February.
The Fed's policy-setting meeting is scheduled for March 18-19 at
which the central bank is expected to keep up the pace of stimulus
reduction.
Investors are keeping a weary eye on a vote in Crimea this
weekend when citizens will decide wether to stay with Ukraine or
join Russia. Read also: Stock investors look past jobs to Yellen,
Ukraine
China slowing; Copper drops
Asian markets were mixed, with the Nikkei 225 index ending
slightly lower, and the Hang Seng Index falling 0.7% after data
showed China's industrial production slowed in the January-February
period, while retail sales in January eased.
The Shanghai Composite rose 1%. Some attributed this to comments
by Chinese Premier Li Keqiang, who said he was confident the
Chinese economy would meet its 7.5% growth goal for this year.
European stock markets fell Thursday to near their lowest level
since early February following more disappointing economic data
from China.
As selling of stocks intensified, traders sought safe havens.
Gold (GCJ4) priced nudged up, Treasuries rose.
Amazon rallies; Herbalife slumps
Shares in Amazon.com Inc (AMZN) rose 1.2% after the online
retailer said it would raise the annual price for its Prime
membership to $99 from $79.
Williams-Sonoma Inc. (WSM) jumped 11% after the retailer topped
forecasts with its quarterly earnings and revenue, as well as
announcing a hike in its dividend late Wednesday.
Plug Power(PLUGD) rose more than 12% after the fuel-cell company
topped a sales forecast in results on Thursday.
Herbalife Ltd. (HLF) fell 4.8% after the company announced an
investigation by regulators on Wednesday, a day after hedge-fund
manager accused it of violating Chinese regulation.
Dollar General Corp. (DG) shares fell 3% after posting a sales
rise, but an outlook that fell short of expectations.
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