Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a713784
Overnight Markets: Wall Street declines on stimulus speculation
by Himanshu Singh on Nov 01, 2013 at 02:57
Wall Street ended lower on Thursday as the Federal Reserve's statement the day before added to investors' anxiety about the timing of a pullback in its stimulus programme.
The Dow Jones industrial average fell 73 points, or 0.47%, to close at 15,546. The S&P 500 lost seven points, or 0.38%, to finish at 1,757. The Nasdaq Composite dropped 11 points or 0.28%, to end at 3,920.
Stocks slumped earlier yesterday after a report showed business activity in the US expanded in October as orders and production surged. The MNI Chicago Report business barometer jumped to 65.9 from 55.7 in September.
Although the Fed on Wednesday said it will continue its bond buying programme, citing weaker economic signals, it removed a phrase from a previous statement expressing worries about credit conditions. It was interpreted as a sign that the central bank could begin tapering earlier than expected.
Visa Inc (V.N) shed 3.5%, pressuring the Dow and the S&P 500, after the world's largest credit and debit card company reported a 28% drop in quarterly profit.
Avon Products Inc. fell 22% after saying possible fines related to foreign bribery probes may hurt earnings.
Among the day's gainers, shares of Exxon Mobil Corp (XOM.N) rose 0.9% after the company reported adjusted third-quarter earnings that beat expectations.
Expedia (EXPE.O) jumped 18% and ranked as the S&P 500's best percentage gainer, a day after reporting third-quarter earnings that exceeded expectations.
Facebook (FB.O) gained 2.4% after reporting strong growth in its mobile advertising business late on Wednesday.
Boeing Co. advanced 0.6% after saying it would step-up production of its 737 jets.
News sponsored by: