The US markets closed lower on Wednesday, for a third-straight day with the S&P 500 joining the Dow Industrials in negative territory for the year, as earlier gains evaporated alongside a turn south in crude-oil prices. On the economy front, firms are still struggling to work off high inventory levels. Wholesale inventories fell 0.1% in October, while sales were flat. The inventory decline in October was below expectations of a 0.1% gain. Wholesale auto and computer inventories accounted for about 60% of the decline. Both durable and nondurable inventories slipped 0.1%. Inventories in September were revised down to a 0.2% gain from the initial estimate of a 0.5% rise. As of October, sales are 4.4% below their peak in July 2014 while inventories have climbed 5.3% over the same period. The inventory-to-sales ratio remained steady at the post-recession high of 1.31 in October, where it has been for three months.
The Dow Jones Industrial Average lost 75.70 points or 0.43 percent to 17,492.30, the Nasdaq was down 75.37 points or 1.48 percent to 5,022.87 and the S&P 500 dropped 15.97 points or 0.77 percent to 2,047.62.
The Indian ADRs closed mostly in red; HDFC Bank was down by 1.02%, Tata Motors was down 0.55% and Wipro was down by 0.07%. On the other hand, Dr. Reddy’s Lab was up by 0.34% and Infosys was up 0.20%.
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