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US shares stall and close lower as car sales data weighs

Last updated: 21:23 03 Apr 2017 BST, First published: 08:23 03 Apr 2017 BST

STOCK-EXCAHNGE-DECENT
  • US shares close lower, though Dow recoups some losses

  • Car sales data for March disappoints

  • Traders eyeing Friday's US jobs report

CLOSE

 

US shares finished lower, mirroring a disappointing day on European markets and as new car sales data weighed.

The Dow Jones finished 13 down at 20,650.

The S&P500 finished around four down at 2,358, while the tech heavy Nasdaq closed down 17 at 5,894.

On S&P 500 the biggest laggard was used car sales firm Carmax (NYSE:KMX) hit by today's auto-related stats, and which tomorrow reports quarterly results ahead of the bell.

S hares shed 4.39% to US$56.67.

The USA new car industry reported sales of 1.56 million vehicles for last month (March), down 1.6% from a year earlier.

The official stats underwhelmed the market, despite, from the same sector, electric car maker Tesla (NASDAQ:TSLA) adding over 7% to $298.52 as its quarterly output stats cheered.

 

MID-SESSION

Wall Street shares followed the trend set in Europe and fell in afternoon deals.

Traders are still wary of risk in the light of worries over whether  President Trump can push stimulus measures through and sentiment has been pummeled by disappointing new car sales stats for March.

Also in the mix is a bomb blast in the underground in St Petersburg, Russia.

US  crude (West Texas Intermediate) fell 0.42% to US$50.39 per barrel as stockpiles are starting to decline fueling hopes the cuts in output earlier this year are feeding through to rebalance the market.

In other data, Manufacturing data for March was above estimates but still down from the previous month's level.

The Dow Jones is down over 83, or 0.37% at the time of writing, at 20,586, the S&P500 is down almost 11 at 2,351, while the Nasdaq is over 26 points off at 5,885.

Ford (NYSE:F) shares are down 2.41% at $11.36. The General Motors (NYSE:GM) stock is down 3.76% to $34.03.

Elsewhere, DryShips Inc (NYSE: DRYS) sank over 17% as the operator of cargo ships announced a private offering of up to $226.4 million worth, further diluting investors', and a deal to buy six vessels.

On the rising front, Novocure Ltd (NYSE:NVCR) added 43.27% aftre the biotech said the  two-year survival rate for GBM (Glioblastoma) brain tumour patients increased from 30% to 43% when treated with Optune + temozolomide versus temozolomide alone.

OPEN

US shares are generally lower in early deals as traders look ahead to the March jobs report on Friday, and after a rally of stocks in the first quarter.

Also this week is the Fed's FOMC (Federal Open Market Committee)  minutes, which of course is always scrutinised to gauge the mood of how the Fed sees the economy moving over coming months.

At the time of writing the Dow Jones is around 12 down at 20,654; the S&P500 is down 1.09 and the tech heavy Nasdaq is up almost three points at 5,914.

Sentiment has taken a knock from this morning's US car sales data, which showed disappointing stats from the major auto makers and point to a sharp slowdown in new vehicle sales.

Ford (NYSE:F.) sales were reportedly down 7.2% for March, lower than an estimate of 5.9% lower.

General Motors (NYSE:GE.) sales were up 1.6% against an estimate for 7%, according to Bloomberg.

In stocks, top loser on S&P500 was Hewlett Packard Enterprise (NYSE: HPE)

Shares shed almost 26% to $17.55 as the computer firm  lowered its adjusted profit outlook for the second quarter and full year.

It comes after it completed the spinoff of its enterprise services (ES) business and its merger with Computer Sciences Corp to create DXC Technology.

 

PREVIEW

US shares are seen opening in muted fashion as the trading week begins, after what has been a strong quarter.

The main indexes have rallied strongly in the first three months, but recently ran out of steam.

On Friday, the Dow Jones fell 65 points to close out at 20,663 on the day but ended the quarter 4.55 points higher than it started it.

The benchmark S&P 500 fell five points to 2,363, while the tech heavy Nasdaq shed almost three to stand at 5,911.

Today, Dow futures are seven points ahead but the S&P 500 is down 0.5 and.75 points.

In London, the FTSE 100 is just about keeping its head above water, up 0.04%, while in Asia overnight, benchmarks saw reasonable gains.

Mike Van Dulken an analyst at Accendo Markets in London said the FTSE 100 today was a  "standard response to Trump trade concerns".

"The index’s test of key support going back not just to the US election but the Brexit referendum is highly significant."

He noted that the weaker US dollar would normally boost oil and metals prices.

"However, the currency sell-off is more to do with waning faith in Trump’s ability to deliver on all his stimulus pledges after failure to kick off Healthcare reform," he said.

In companies, Elon Musk's Tesla (NASDAQ:TSLA) shares are up 3.49% in pre-market to $278.30 after the electric car giant delivered a record 25,000 vehicles in the first quarter, up an impressive 69% from the same period last year.

The firm rolled out about 13,450 Model S cars and about 11,550 Model X SUVs.

Apple  (NASDAQ:AAPL) lost 0.08% in pre-market. It comes as London tech  stock and chip designer Imagination Technologies plummeted over 60% after the former said it would end a deal to use its products. 

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