The US markets declined for a second day on Thursday, pushing the Nasdaq Composite Index into the loss for the week, as data on manufacturing, home sales and jobless claims tempered optimism in the economy, overshadowing improving earnings and unease over Europe which too offset positive corporate results. An April gauge of manufacturing activity in the Philadelphia region came in worse than expectations, as did first-time jobless claims. The number of Americans who filed requests for unemployment insurance last week hovered near a four-month high defying expectations that applications would begin to recede after a recent spike. Weekly jobless claims totaled 386,000, seasonally adjusted, in the week ended April 14, the US Labor Department reported. The claims from two weeks ago were revised up to 388,000 from an initial reading of 380,000. It was the second straight time claims were revised higher by an unusually large amount. Besides, sales of previously owned homes fell last month for the third time in four, underscoring the ongoing struggles for the housing market. Sales of existing homes fell 2.6% in March, the second monthly drop, though the sales pace for the first quarter of 2012 was the best in five years, according to data released. The National Association of Realtors stated that sales ran at a seasonally adjusted annual rate of 4.48 million, compared to 4.60 million in February. The NAR had previously estimated sales of 4.59 million in February.
However, the Conference Board’s index of US leading indicators climbed for a sixth month in March, signaling economic expansion. A gradual improvement in US economic growth is expected past the summer, the Conference Board stated as it reported an increase in its index of leading economic indicators. The private research group’s index rose 0.3% in March, hitting the highest level since 2008, led by the interest rate spread.
In Europe, Spanish and Italian bonds declined after Italy stated costs related to servicing its debt would escalate this year and as yields rose at French and Spanish auctions. French credit risk climbed to the highest in three months on concern anti-business policies will be adopted after the presidential election as Europe’s debt crisis deepens. Separately, Christine Lagarde, managing director of the International Monetary Fund, stated she hopes to raise more than $320 billion in additional lending resources.
The Dow Jones Industrial Average closed lower by 68.65 points, or 0.53 percent, at 12,964.10. The S&P 500 lost 8.22 points, or 0.59 percent, at 1,376.92, while the Nasdaq was down by 23.89 points, or 0.79 percent, at 3,007.56.
Indian ADRs closed mostly in green on Thursday; Dr. Reddy’s Lab was up 0.65%, Tata Motors was up 0.49% and Infosys Technologies was up 0.32%. On the flip side, ICICI Bank was down 0.13% and Tata Communications was down 0.10%.
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