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Overnight Markets: Mining shares lead Wall Street lower
by Himanshu Singh on Sep 13, 2013 at 04:27
Wall Street declined on Thursday as a drop in precious metal prices dragged mining shares lower amid easing concern over Syria and investors weighed the prospects for Federal Reserve stimulus cuts.
The Dow Jones industrial average was down 26 points, or 0.17%, at 15,300. The Standard & Poor's 500 Index was down six points, or 0.34%, at 1,683. The Nasdaq Composite Index was down nine points, or 0.24%, at 3,716.
Spot gold was down 2.6% to $1,331 an ounce as tensions with Syria eased and on worries the Fed will begin to scale back its monetary stimulus when it meets on Tuesday and Wednesday. The materials sector fell, with gold miner Newmont Mining (NEM.N) off 4.2%. Barrick Gold Corp. dropped 5.5%. Cliffs Natural Resources Inc., the largest US iron-ore producer, slumped 5.2%.
Economic data showed first-time weekly claims for state unemployment benefits fell to the lowest level since 2006, but the picture was incomplete because two states did not process all their claims.
Lululemon Athletica Inc (LULU.O) slumped 5.4% after the apparel retailer reported second-quarter results and trimmed its outlook.
Shares of Walt Disney (DIS.N) gained 2.4% after the media giant said it will increase its share buybacks. Pandora Media Inc. jumped 12% to a record after naming digital-advertising veteran Brian McAndrews as its new chief executive officer.
Also on the up side were shares of NetSol Technologies Inc (NTWK.O), which jumped 9.5% after the software maker reported fourth-quarter earnings.
In another major reshuffle, S&P Dow Jones Indices announced late Wednesday that Vertex Pharmaceuticals Inc (VRTX.O) and Ametek Inc (AME.N) will replace Advanced Micro Devices Inc (AMD.N) and SAIC Inc (SAI.N) in the S&P 500 after the close of trading on 20 September.
Vertex shares gained 2% and Ametek rose 2.6%. AMD fell 1.8% and SAIC edged up 1.3%. Advanced Micro Devices were down 1.8%.
In Asia, shares declined on Friday in morning trade as the US and Russia hold talks on Syria and investors await the outcome of the Fed meeting next week.
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