Dow Jones: 11,545.04 (-2.27) Nasdaq: 2,527.17 (+4.03) S&P 500: 1,194.21 (+1.23)US STOCKS were little changed in a choppy session yesterday as markets reacted to headlines about Europe's debt crisis and digested data showing the US economy grew more slowly than previously thought.
The US economy grew at a 2 per cent annual rate in the third quarter, down from the government’s estimate of 2.5 per cent one month ago.
Stocks rebounded from earlier lows after the International Monetary Fund said it strengthened lending tools and introduced a six-month liquidity line, throwing help to countries at risk from the euro zone crisis.
Worries about debt problems in the US and Europe pushed the benchmark SP 500 down more than 5 per cent over the past week.
“Maybe some things are calming down in Europe. That was the reason for yesterday’s sell-off. It may be people kind of reassessing their reaction to Europe news and just coming back to basically the US numbers having been pretty decent for about a month now,” said Peter Jankovskis of OakBrook Investments.
Spain’s short-term borrowing costs hit a 14-year high yesterday as political uncertainty about a solution to the euro zone’s sovereign debt crisis punished another vulnerable European country.
Late on Monday, the two leaders of a special US congressional committee said the panel failed to reach a deal on reducing government deficits. Investors are worried the stalemate will make it more difficult to pass extensions of measures such as payroll tax cuts that could help stimulate the economy.
The S&P has fallen through a key support level at 1,200 but again managed to hold near 1,187, seen as the next technical support, representing the 61.8 per cent retracement of the 2011 high to low.
Hewlett-Packard dropped 3.3 per cent to $25.97 as the worst performer on the Dow after the computer- and printer-maker gave a 2012 profit outlook that was below consensus late on Monday.
Campbell Soup reported first-quarter earnings that beat expectations while sales were slightly below consensus, sending the stock down 4.5 per cent to $32.11.
Trading volume is likely to be thin this week as global uncertainties and the US Thanksgiving holiday keep many investors on the sidelines. – (Reuters)
