There was drop in U.S. stocks following the day the Standard & Poor’s 500 was unable to sustain an almost four year-high when sales of previously owned houses fell short on forecasts at the same time economic information from both Europe and China are posing significant headaches. The S&P 500’s current loss clipped its gain in February to 3.5 percent despite the index is said to brace for a 3rd consecutive month of gains, its longest streak in a year. Yesterday, it failed to sustain its gain over 1,363.61 during April 2011, which was the highest peak since June 2008.
The S&P pulled back 0.3 percent to 1,357.66 at 4 p.m. New York time while Dow Jones Industrial Average forfeited 27.02 points or 0.2 percent ending at 12,938.67 following a rise above 13,000 a day before since 2008. Meanwhile, the Russell 2000 Index decreased to 0.8 percent to 816.50. The world’s number three when it comes to producing personal computers, Dell Inc., rolled back 5.8 percent subsequently when its sales forecasts missed estimates. Dropping to more than 4.1 percent were Toll Brothers Inc. and KB Home. Among the group within the S&P 500, banks had experienced the largest loss along with 24 others that fell 1.7 percent. Gannet Co. which owned 82 newspapers including USA today enjoyed a 4.2 percent increase as it will boost its stock.
The world’s biggest retail store, Wal-Mart Stores Inc., shrank by 2.5 percent falling to $58.60, the most in the Dow. There was a 3.9 percent decrease in shares on the previous day after data on the last quarter profit failed to meet analyst’s forecasts. Gannett however found itself shooting upwards by 4.2 percent to $15.61 and made announcements that it will lift its quarterly dividend of 8 cents by 12 cents more per share with the aim of yielding back to shareholders more than $1 billion by 2015. Another gainer, Intuit Inc. climbed 5.9 percent ending at $60.92 and reported a raise in its profit estimates for the entire year.
Upon the reports of doubts that Europe’s bailout package for debt-burdened Greece would not be able to settle the country’s problem, financial shares fell. Finance ministers of the euro bloc signed off yesterday a 130 billion euro ($172 billion) aid for Greece with the intention of dodging the first sovereign default in the 13 year history of the currency’s union.