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US market closed mostly lower for third day in a row

30 Mar 2012 Evaluate

The US markets closed mostly lower on Thursday, the third day in a row after the weekly claims for prior week was revised up. Though, the initial claims for jobless benefits declined to a 4-year low last week and the economy expanded at an annual rate of 3% last year. Jobless benefits claims declined to 5,000 to a seasonally adjusted 359,000. The weekly jobless claims were the lowest since April 2008 but the weekly claims total for the prior week was revised up to 364,000 from the initial estimate of 348,000. The four-week moving average that smoothens out the volatility declined 3,500 to 365,000. The Labor Department’s annual benchmark revisions resulted in a small increase in the level of weekly claims over the past few years, but applications for jobless benefits are still at a four-year low.  Besides, the US economy grew 3% in the fourth quarter, the same pace as previously reported.

The government provides three estimates of economic growth per quarter, with each reflecting more complete information than the last. New data showed that corporate profits had a weak fourth quarter. Before taxes, corporate profits fell 0.4%. In the past year, profits rose 4.2% after having enjoyed a 25% increase in 2010, the largest jump since 2005.

The Euro-zone economic confidence dipped in March, driven by decreasing confidence in the industry and construction sectors, according to a survey data from the European Commission. The economic sentiment index fell to 94.4 in March from 94.5 in February. Also, Moody's Investors Service downgraded the credit opinions of seven Portuguese banks and banking groups. Moody’s also stated that all credit opinions have a negative outlook. However, German unemployment dropped more than expected but sentiment in the euro area dipped slightly in March.

The Dow Jones Industrial Average closed higher by 19.61 points, or 0.15 percent, at 13,145.80. The S&P 500 lost 2.26 points, or 0.16 percent, at 1,403.28, while the Nasdaq was down by 9.60 points, or 0.31 percent, at 3,095.36.

Indian ADRs closed mixed on Thursday, HDFC Bank was down 0.83%, Dr. Reddy’s Lab was down 0.14% and %, ICICI Bank was down 0.08%. On the flip side, Infosys Technologies was up 0.55% and Wipro was up 0.22%.

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