11:50 AM New York – Market indexes dropped more than 1% on Wall Street after durable goods orders plunged in August. Apple stock declined for the second day in a row after glitches in new phone and operating system were highlighted. Crude oil, gold and copper extend weekly losses.
Stocks on Wall Street fell sharply and market indexes were unable to build on yesterday’s rally after a three-day slide.
Conflicts in the Middle East and the U.S., UK and France led aggressive bombing in Syria and growing worries of global slowdown affected market sentiment.
S&P 500 index declined 1.1% or 22.91 to 1,975.39 and the Nasdaq Composite Index dropped 71.85 or 1.6% to 4,483.01.
Durable Goods Orders Plunge
Orders for durable goods in August plunged 18.2% after surging 22.5% in the previous month, the Commerce Department said Thursday.
Transportation orders volatility dominated the change in durable goods data. Boeing received 324 new plane order including single largest record order of 150 plane order from Emirates airlines.
Orders of new planes declined to 107, near monthly average and the aircraft maker has received 123 new orders so far this year.
Capital goods orders excluding volatile aircraft and transportation orders rose 0.7% in August after falling 0.5% in the previous month.
New orders for computers and related products plunged 8.4% in the month after falling 7.7% in July.
Orders capital goods excluding non-defense and transportation orders increased 0.6% in August after falling 0.2% in July.
In London trading, FTSE 100 index slipped 0.9% or 61.43 to 6,644.84 and in Frankfurt the DAX index declined 1.3% or 129.77 to 9,532.20.
In Paris, CAC 40 index dropped 1% or 44.67 to 4,369.05.
Direct Line Insurance Group Plc
rose 0.2% to 297.10 pence after the U.K.-based insurer agreed to sell its international division for €550 million (£430.5 million or $701 million) and promised to return most of the net proceeds to shareholders.
The home and auto insurer forecasted pre-tax gain from the sale of about £160 million or $261 million.
H & M Hennes & Mauritz AB
declined 3.9% to 301.20 kronor after the Sweden-based clothing retailer reported net sales in the third-quarter ending in August soared 21.1% to 38.8 billion kronor from 32 billion kronor a year ago period.
Profit in the quarter surged 19.6% to 5.30 billion kronor compared to 4.43 billion kronor and earnings per share jumped to 3.20 kronor from 2.68 kronor a year earlier.
The retailer said sales in three weeks to September 23 climbed 7% and online sales launched in Italy and Spain in August are on “excellent start.”
Stocks in Tokyo closed higher after investors added exposure to risky assets ahead of dividends and Nikkei Average and Topix closed at the highest in six years.
The Nikkei 225 Stock Average jumped 206.69 or 1.3% to 16,374.14 and the broader Topix index increased 20.25 to 1,346.43.
The yen dropped to new a six-year low of 109.25 against one U.S. dollar.
Stocks in Mumbai continued to decline after the central government differed its plan to finalize natural gas price for the third time.
ONGC and Reliance Industries, two leading energy companies with large weights in the index, led the decline and dragged the Sensex.
The Sensex Index dropped 276.33 or 1% to close at 26,468.36 The CNX Nifty slipped 90.55 to 7,911.85.