US stocks end in red ahead of Obama speech
NEW YORK—US stocks slid Thursday as traders awaited a key speech by President Barack Obama to Congress on stimulating the economy and job growth.
After snapping a three-session slide Wednesday with a triple-digit gain, the Dow Jones Industrial Average tumbled 119.05 points, or 1.04 percent, to finish at 11,295.81.
The broader S&P 500 fell 12.72 points (1.06 percent) to 1,185.90, while the tech-heavy Nasdaq Composite slid 19.80 points (0.78 percent) to 2,529.14.
“Obama is expected to discuss a plan to stimulate job growth, but many expect that plan components, including tax cuts, will encounter opposition in Congress,” Briefing.com analysts said in a client note.
“That said, many believe that the plan may already be discounted by the market.”
Obama is set to address a rare joint session of Congress at 7 p.m. (2300 GMT).
Article continues after this advertisementStocks moved lower in the afternoon following a speech by Federal Reserve chairman Ben Bernanke.
Article continues after this advertisement“The Fed chief reiterated the comments he made in Jackson Hole last month, while offering no additional insight as to specific actions that may be on the horizon,” Charles Schwab analysts said.
Traders digested mixed economic signals on the health of the sluggish economy.
Initial jobless claims rose last week, continuing to trend upward, the Labor Department reported.
The claims data signaled little change in the depressed labor market, where the unemployment rate remained stuck at 9.1 percent in August for the second straight month.
US trade numbers, however, offered a positive note. The US trade deficit shrank sharply in July, as exports surged and imports fell, the Commerce Department reported.
Most of the Dow’s 30 blue-chip stocks were lower. Embattled Bank of America tumbled 3.7 percent to $7.20 and JPMorgan Chase dropped 3.8 percent to $33.51.
Caterpillar and General Electric, key signals on the outlook for the global economy, fell 1.9 percent and 1.3 percent, respectively.
Microsoft was among the index’s five gainers, up 0.9 percent at $26.22, after the Korea Economic Daily reported it has teamed up with Samsung Electronics to make a new tablet computer powered by Microsoft’s latest operating system, Windows 8.
Bonds rallied. The yield on the 10-year Treasury note fell to 1.99 percent from 2.04 percent late Wednesday, while that on the 30-year bond declined to 3.31 percent from 3.35 percent.
Bond prices and yields move in opposite directions.
