Stocks Temper Losses on Falling Oil

albena
27 Apr, 2005
New York City

Stocks slid Wednesday as a surprisingly lofty plunge in durable goods orders provoked new worries about the strength of the economy, shadowing earnings news from Verizon Communications Inc. and other companies. However, falling oil prices allowed stocks to trim losses.

In morning trading, the Dow Jones industrial average declined 66.87, or 0.6%, at 10,084.26.

The Standard & Poor's 500 index dropped 7.14, or 0.6%, to 1,144.60. The Nasdaq composite index fell 13.69, or 0.71%, to 1,913.75.

The Commerce Department reported that orders to U.S. factories for durable goods plunged 2.8% in March, the lowest in 2 1/2 years and the third straight monthly tumble. The steep drop was seen as pure evidence that the economy may be threatened as consumers and businesses cut back on spending due to increasing energy prices.

The dollar was initially higher in overseas trading but later fell back vs. other major currencies reflecting the disappointing data on U.S. durable goods.

Overseas, Japan's Nikkei stock average lost 0.28%. In afternoon trading in Europe, France's CAC-40 dipped 1.68%, Britain's FTSE 100 dropped 1.06% and Germany's DAX index was down 1.61%.

Crude for June delivery was last trading down $1.30 at $52.90 a barrel.


Shares UP:

Genentech advanced 3.12, or 4.5%, to 72.55.
American Express rose 58 cents, or 1.1%, to 51.55.
Countrywide Financial advanced 86 cents, or 2.6%, to 33.89.
Providian Financial rose 82 cents, or 5.2%, to 16.68.
McGraw-Hill gained 2.99, or 3.6%, to 85.70.
Boyd Gaming rose 5.18, or 10%, to 56.59.
Wm. Wrigley Jr. climbed 3.09, or 4.8%, to 67.57.
Coach advanced 1.44, or 5.5%, to 27.76.
Meritage Homes rose 4.87, or 8%, to 65.67.
ImClone Systems rose 2.55, or 8.1%, to 34.13.
Altera gained 1.35, or 7%, to 20.60.


Shares DOWN:

Lexmark International fell 11.05, or 14%, to 67.70.
Shares of STMicroelectronics were down 5.9% at $14.69.
Colgate-Palmolive's stock was down 2.2% at $49.58.
DuPont lost 1.55, or 3.2%, to 47.03.
Silicon Laboratories lost 4.90, or 16%, to 25.90.
Rockwell Automation fell 8.38, or 15%, to 48.
Sara Lee lost 53 cents, or 2.4%, to 21.33.
Mittal Steel's American depositary receipts fell 1.75, or 6.4%, to 25.80.
Triad Hospitals fell 1.25, or 2.4%, to 50.17.
Avery Dennison lost 86 cents, or 1.6%, to 51.61.
UST lost 8.22, or 15%, to 46.38.