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Overnight Markets: US stocks fall on Syria concerns
by Himanshu Singh on Aug 28, 2013 at 04:11
Wall Street declined on Wednesday, with the Standard & Poor’s 500 Index dropping the most since 20 June, as a report showing consumer confidence unexpectedly rose in August was overshadowed by growing tension over possible military action in Syria.
The Dow Jones industrial average was down 170 points, or 1.14%, at 14,776. The S&P 500 Index was down 26 points, or 1.59% at 1,630. The Nasdaq Composite Index was down 79 points, or 2.16%, at 3,579.
Shares fell after possibility of a strike grew against al-Assad's forces for a chemical weapons attack against civilians as a number of nations and groups - including Britain, France, Canada and the Arab League - joined Washington in urging a firm response to Assad.
Defense Secretary Chuck Hagel said US military forces in the region are "ready to go" should President Barack Obama order action against Syria.
Meanwhile, data showed consumer confidence unexpectedly increased in August as Americans grew more optimistic about the outlook for the economy.
Financials and materials were the weakest of the day. Goldman Sachs (GS.N) fell 3% a day after a source said the company lost tens of millions of dollars after a computer glitch led to a flood of erroneous options trades last week.
Shares of Tiffany & Co (TIF.N) dipped 1% after it reported second-quarter sales that missed expectations. Goodyear Tire and Rubber Co (GT.O) rose 2% as the S&P's biggest gainer after the company detailed a new master labor contract.
D.R. Horton Inc. fell 3.8% as a report showed residential real-estate prices increased in June at a slower pace.
Airlines dropped as West Texas Intermediate crude rose to a the highest since February 2012 amid the tension in Syria. Southwest Airlines Co. tumbled 3.5% amid concern surging oil prices will boost fuel costs. United Continental Holdings Inc. plunged 7.2% and Delta Air Lines Inc. slumped 5.7%.
On the positive side, DSW Inc. jumped 7.9% after the shoe retailer reported second-quarter profit excluding some items of 97 cents a share, exceeding estimates.
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