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US market slips as growth in durable-goods orders miss estimates

29 Mar 2012 Evaluate

The US markets closed lower for the second session on Wednesday, as investors dumped stocks closely tied to global growth after a disappointing report on durable-goods orders. Ahead of the opening bell, the Commerce Department reported, orders for long-lasting goods rose 2.2% in February, reflecting broad strength in demand across most US industries and rebounding from a sharp drop in January, but lagging the anticipated growth of 2.9%. The durable goods orders are keenly watched to gauge the broader economic growth and data offered a halting economic recovery view. Also, European governments are preparing for a one-year increase in the ceiling on rescue aid to 940 billion euros ($1.3 trillion) to keep the debt crisis at bay, according to a draft statement written for finance ministers. The euro-area finance chiefs will probably decide at a meeting in Copenhagen March 30 to run the 500 billion-euro permanent European Stability Mechanism alongside the 200 billion euros committed by the temporary fund.

The Dow Jones Industrial Average closed lower by 71.52 points, or 0.54 percent, at 13,126.20. The S&P 500 lost 6.98 points, or 0.49 percent, at 1,405.54, while the Nasdaq was down by 15.39 points, or 0.49 percent, at 3,104.96.

Indian ADRs closed in red on Wednesday, Infosys Technologies was down 1.66%, ICICI Bank was down 0.78%, Tata Motors was down 0.38%, Sterlite Industries was down 0.32% and Tata Communications was down 0.17%.

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