2:05 PM New York – Market indexes on Wall Street slumped more than 1%, European markets extended weekly losses and China curbed shadow financing to speculate in stock market. U.S. consumer confidence improved and the cost of living rose in March for a third month in a row.
Stocks on Wall Street turned lower as earnings jitters resurfaced, weak markets in Asia and Greek debt saga continued.
Market indexes on Wall Street declined more than 1% after American Express reported weaker-than-expected results and equity indexes have struggled since reaching new highs on March 2.
S&P 500 index has traded sideways for the last six weeks largely on the weak earnings outlook, depressed conditions in the energy complex and stretched valuations.
The index of consumer prices increased 0.2% in March from February, the Department of Labor said.
On Wall Street, Tollbooth Strategy Index dropped 1.2% or 124.15 to 10,540.27.
S&P 500 index dropped 21.44 or 1% to 2,083.69 and the Nasdaq Composite Index declined 70.55 or 1.4% to 4,937.62.
Crude oil in New York slipped 68 cents to $56.03 a barrel and gold jumped $6.10 to $1,204.10 an ounce.
European markets struggled after Greek debt negotiations hit another road block and the government lagged in implementing financial reforms and step up revenue collection.
In Asia, China made more shares available for short selling and Chinese regulators banned the margin account trading after the one-year-long rally doubled the Shanghai index.
American Express Company
) declined 4.5% or $3.64 to $77.27 after the consumer lending services provider reported total revenues in the first-quarter ending in March dropped 3% to $7.95 billion from a year ago period.
Net income in the quarter jumped 6% to $1.53 billion or $1.48 per diluted share compared to $1.43 billion or $1.33 from the same quarter last year.
Revenue from U.S. card services segment rose 6% to $934 million but revenues from international card services segment tumbled 16% to $134 million.
General Electric Company
) rose 21 cents to $27.49 after the diversified conglomerate reported total revenues in the first-quarter ending in March tumbled 12% to $29.36 billion from a year ago period.
Net in the quarter swung to a loss of $13.57 billion or $1.35 per diluted share compared to profit of $3 billion or 30 cents from the same quarter last year.
GE Capital revenues in the quarter plunged 39% to $5.98 billion and industrial segment revenues dropped 1% to $24.36 billion and revenue from its oil & gas business declined 8% to $3.96 billion.
European market indexes declined for the second day after reaching new highs on Wednesday as Greek saga dragged and weakness in the U.S. and Asia contributed to market jitters.
In London trading, FTSE 100 index slumped 1% or 72.60 to 6,987.85 and in Frankfurt the DAX index declined 1.8% or 217.40 to 11,781.46.
In Paris, CAC 40 index dropped 1.1% or 58.76 to 5,165.73.