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Overnight Markets: US stocks snap six-day winning streak
by Himanshu Singh on Apr 24, 2014 at 04:16
Wall Street declined on Wednesday to snap a six-session winning streak as reports showed weakness in home sales and global manufacturing.
The Dow Jones industrial average declined 13 points or 0.08%, to end at 16,502. The S&P 500 lost four points or 0.22%, to 1,875. The Nasdaq Composite dropped 34 points or 0.83%, to 4,127.
In economic news, new home sales tumbled more than expected to an eight-month low in March. The PHLX housing sector index fell 1.1%, with D.R. Horton Inc (DHI.N) off 2.2%.
In China, manufacturing is contracting for a fourth month, according to a preliminary survey from HSBC Holdings Plc and Markit Economics Ltd.
AT&T Inc (T.N) fell 3.8% a day after the Dow component reported earnings that beat expectations, offset by weak service revenue growth.
Verizon Communications (VZ.N) shed 1% while the S&P telecom sector index dropped 2.2%, easily making it the session's worst-performing sector.
Biotech shares pulled the Nasdaq lower. Amgen Inc (AMGN.O) slid 5%, a day after earnings missed forecasts. On the positive side, Gilead Sciences Inc (GILD.O) rose 1.4% and Illumina Inc (ILMN.O) gained 3.9% after the companies posted results late Tuesday.
Boeing Co (BA.N) reported first-quarter revenue that beat expectations and lifted its core earnings forecast to reflect a tax settlement gain, sending its stock up 2.4%.
After the closing bell, Apple Inc jumped 7.3% after the iPhone maker reported quarterly results, approved a seven-for-one stock split and expanded its share-buyback authorisation by $30 billion.
In another big move after the close, Facebook Inc (FB.O) gained 4.8% after its mobile advertising business continued to accelerate in the first three months of the year, helping the social networking company top Wall Street's revenue target.
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As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.
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