U.S. stocks closed lower and bond prices fell after an economic report showed retail sales in July fell for the first time in five months. Crude oil prices rose, boosting energy shares, after the U.S. Energy Department reported a bigger-than-forecast decline in gasoline inventories, increasing supply concerns. A lower-than-expected earnings announcement from Deere & Co. also weighed on the market.
The Dow Jones industrial average was down 109.51 .. at 11532.96.
The Standard & Poor's 500 index was down 3.76 .. at 1285.83.
The Nasdaq composite index was down 1.99 .. at 2428.62.
The Transportation Average was down 6.44 .. at 5070.31.
And Utilities were up 4.42 .. at 469.90.
Volume on the New York Stock Exchange was moderate, with 1.2 billion shares traded. Declining issues outnumbered advancers by a 3-to-2 margin.
THE 5 MOST ACTIVE ISSUES ON THE NEW YORK STOCK EXCHANGE AS OF 3:10 CT WERE
MERRILL LYNCH & CO INC UP $ 0.72 TO.. $ 25.60
BANK OF AMERICA CORP DOWN $ 2.27 TO.. $ 28.86
CITIGROUP INC DOWN $ 0.73 TO.. $ 17.81
KRAFT FOODS INC UP $ 0.19 AT.. $ 32.86
FORD MOTOR CO DOWN $ 0.31 TO.. $ 4.88
The 30-year Treasury fell 15/32, raising the yield to 4.56%. The 10-
year Treasury fell 5/16, raising the yield to 3.94%. The 3-month T-
Bill closed at 1.84% and the 6-month T-Bill closed at 1.99%.
In commodity markets, Gold rose $16.90 to $831.50 and Silver rose $0.36 to
$14.85. Crude oil prices rose $2.99 to $116.00 per barrel on the New York Mercantile Exchange.
LOOKING AT OTHER DEVELOPMENTS:
Deere & Co. reported third-quarter earnings that missed estimates on higher
raw material costs and reported a weaker outlook for the fourth-quarter.
The company earned $1.32 per share, compared to $1.18 a year earlier. Deere forecasted fourth quarter profit to be $425 million compared to previous
expectations of $490 million. Deere & Co. closed down $2.25 to $67.10.
Macy's Inc. said second-quarter profit fell and full-year earnings could fall
more than it previously anticipated. On a per share basis, the company
earned $0.29, compared with $0.29 a year ago. The company expects full-year
earnings to fall in a range of $1.70 to $1.85, down from a previous estimate
of $1.85 to $2.15. Macy's closed up $0.39 to $20.66.
CVS Caremark Corp. announced it will acquire Long Drug Stores Corp. in deal
valued at $2.7 billion. CVS reported it will pay shareholders of Long Drug Stores $71.50 cash per share, a 32% premium over Long Drug Stores' closing price yesterday. CVS stated the acquisition will provide access to fast
growing West Coast markets. The deal is expected to close in the fourth
quarter. CVS Caremark closed down $0.02 to $38.03.
At the close, foreign markets were mostly lower today.
Canada's S&P/TSX Composite was up 210.22 to close at 13377.22.
Mexico's Bolsa index was up 240.52 to close at 26877.07.
Britain's FTSE 100 Index was down 85.90 to close at 5448.60.
France's CAC 40 Index was down 115.51 to close at 4402.97.
Germany's DAX Index was down 163.68 to close at 6422.19.
Japan's market was down 280.55 to close at 13023.05.
Hong Kong's market was down 347.57 to close at 21293.32.
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