The US stocks fell on Thursday trading session, as Dow Jones Industrial Average dropped with 232 points (1.41%) to 16,108.89 points, against the background of the crisis in Ukraine and the poor economic data of China. The blue chip index registered the worst performance since February 3rd this year. The broader index S&P 500 fell with 1.17% to 1,846.34 points. The technological Nasdaq Composite fell with 1.46% to 4,260.42 points.
Investors in the banking and industrial sectors of China are scared about the financial position of companies in both sectors. This is the reason that banks in the country reduced the crediting of the companies in the sectors with over 20%.
In February, the US budget deficit dropped to 194 billion USD. According to the US Treasury data the decrease was 10 billion USD, or 5% compared to the deficit recorded in February 2013. The government spendings during the month amounted to 338 billion USD, which is 4% more than an year ago. The revenues grew with 18% yoy to 144 billion USD. For the financial year up to date the deficit has declined by 24%, as the revenue increased by 9.0% and the costs fell with 1.0%.
The US Secretary John Kerry warned that USA and EU are ready to take “very serious measures” against Moscow on Monday in response to Sunday’s referendum in the Crimea to join it to the Russian Federation.
Meanwhile Stanley Fischer told the Senate Banking Committee that the US Federal Reserve is doing everything in its power to help the economy. Last week, the number of initial applications for unemployment benefits fell with 9 thousand to a value of 315 thousand. This is the lowest level of the index in last three months. In February, the retail sales in USA rose with 0.3% compared to January data, which is the first increase in the last 3 months. The expectations were for a slightly weaker growth of about 0.2%.
The share price of Pfizer fell with 2.69% to 31.12 USD and the company led the losers among the components of the Dow Jones. Goldman Sachs Group lost 1.8% from its shares price to 166.70 USD, after S&P Capital IQ lowered its assessment of the securities of the bank from positive to negative. The shares of Dollar General dropped with 2.75% after the company announced weaker than expected sales around the Christmas holidays.
Williams-Sonoma leaded the winners on Wall Street, as the company rose nearly 10% its market capitalization to 64.74 USD per share after the seller of luxury tableware and home furnishings performed better than expected forecasts for the finances in 2014. Amazon.com shares rose with 0.21% to 371.43 USD after the online retailer raise the price of your basic subscription. The shares of Krispy Kreme Doughnuts rose with 1.16% to 20.11 USD per share after the company increased its expectations for the annual financial results.
On the New York Stock Exchange the crude oil futures with delivery in April rose slightly with 0.2% to 98.20 USD per barrel. The contracts on gold with delivery in April added 1.90 USD to their price, reaching 1,372.40 USD per ounce.