4:25 PM New York City, New York – U.S. stocks stayed in the negative territory and investors struggled to find a path from the uncertainty related to ongoing U.S. monetary policy and global economic slowdown. Caterpillar set the tone after announcing a large job cut and lowered sales outlook.
Stocks opened sharply lower in New York and in a volatile session market indexes struggled to rebound to flat line.
Ongoing U.S. monetary policy and direction of global economic growth resurfaced after one of the largest U.S. companies Caterpillar lowered its sales outlook and announced a large job cut.
Seasonally adjusted weekly jobless claims rose 3,000 to 267,000 from the previous week’s unrevised claims of 264,000, the U.S. Department of Labor said.
Durable goods orders in August fell 2% to $236.3 billion, the decrease following two consecutive monthly increases and 1.9% increase in July.
Orders excluding transportation declined 5.8% and defense slid 1%, the Department of Commerce reported.
Separately, the department said seasonally adjusted new home sales in August jumped 5.7% to 552,000 from the revised June rate of 522,000 and surged 21.6% from a year ago month to 454,000.
The median sale price of new homes sold in the month was $292,700 and average price was $353,400.
On Wall Street, Tollbooth Strategy Index slipped 112.71 or 1.1% to 10,238.54.
S&P 500 index slumped 20.81 or 1.1% to 1,918.27 and the Nasdaq Composite Index dropped 63.91 or 1.3% to 4,688.55.
Crude oil in New York rose 29 cents to $44.77 a barrel and gold soared $20.90 to $1,152.40 an ounce.
slipped 1.2% or $1.21 to $96.65 after the Ireland-based outsourcing services provider reported revenues in the fourth-quarter ending in August rose 1.1% from a year ago to $8.36 billion.
Net income in the quarter jumped 4% to $788 million or $1.15 per diluted share compared to $760 million or $1.08 from the same quarter last year.
For the fiscal first-quarter, Accenture forecasted net revenues in the range of $7.70 billion to $7.95 billion.
Accenture estimated revenues growth for the year between 5% and 8% and diluted earnings per share in the range of $5.09 to $5.24.
) plummeted 6% or $4.22 to $65.97 after the construction and mining equipment maker lowered revenues forecast for the year by $1 billion to about $48 billion and also lower operating costs of about $1.5 billion.
The company also plans to reduce its workforce by 4,000 to 5,000 by the end of 2016 and by 10,000 through 2018.
Markets in Europe extended weekly losses on the growing worries of global slowdown and the impact of widening Volkswagen scandal weighed on German stocks.
In London trading, FTSE 100 index dropped 71.74 or 1.2% to 5,963.15 and in Frankfurt the DAX index decreased 176.48 or 1.8% to 9,435.48.
In Paris, CAC 40 index slumped 72.81 or 1.6% to 4,359.88.
H & M Hennes & Mauritz AB
declined 3.2% to SEK300.50 after the Sweden-based retailer reported net sales in the third-quarter ending in August soared 18.6% from a year ago to SEK46.02 billion.
Net profit in the quarter edged up 0.2% from a year ago to SEK5.31 billion compared to SEK5.30 billion and earnings per share rose to SEK3.21 from 3.20.