Stocks move lower amid economic worry

By msnbc.com news services

Stocks moved lower Thursday as data pointing to an improvement in the labor market did little to shake investor pessimism about a faltering global economy.

Labor Department data showed initial claims for state unemployment benefits dropped 26,000 to a seasonally adjusted 350,000, the lowest level in four years, and better than the 372,000 estimated.

Still, the data did little to alleviate concerns that a broader economic slowdown, indicated by other macroecnomic data and slowing global growth, could hurt corporate profits. These worries have sent the S&P 500 down 2.4 percent over the past five sessions.

"We are still at 350,000, which is the least since March of 2008 but it is not effectively changing anything - the conversation, the approach, the market's outlook - nothing," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

"Whether it is broader themes in employment, GDP, industrial production, housing - there is a lot there that speaks to a headwind that is going to take some very significant time and energy to get through - this (data) is not going to give us that kind of push."

Hotel operator Marriott International Inc reported a higher quarterly profit after the close on Wednesday but saw weakness in some international markets.

Chevron Corp, the second-largest U.S. oil company, said late Wednesday second-quarter profit would be higher than the previous quarter as improved refining margins offset lower oil prices.

U.S.-listed shares of Infosys Ltd tumbled after the Indian IT heavyweight cut its sales forecast more deeply than expected as global economic uncertainty eroded tech spending.

Supervalu Inc plunged after the third-largest U.S. supermarket chain suspended its dividend and said it was mulling options for overhauling the firm, including a sale.

SAP AG was a bright spot as U.S.-listed shares of the German business software maker advanced after it said second-quarter software revenues rose a currency-adjusted 19 percent, near the upper end of its target range and bucking a weakening trend among its technology peers.

Other economic data showed U.S. import prices fell last month by 2.7 percent, the most in more than three years, due to a plunge in the cost of imported oil, further icing inflation pressures.

Reuters contributed to this report.

Source: http://marketday.msnbc.msn.com/_news/2012/07/12/12701961-stocks-move-lower-amid-economic-worry?lite

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