Friday, December 13, 2013

US stocks Falls

On Thursday US stocks closed lower after a good retail sales report that raised speculation that the US Federal Reserve could soon lessen its stimulus program.

The Dow Jones Industrial Average fell 104.10 points (0.66 %) to 15,739.43.

The broad-based S&P 500 declined 6.72 (0.38 %) to 1,775.50, while the tech-rich Nasdaq Composite Index gave up 5.41 (0.14 percent) at 3,998.40

Thursday marked the third straight day of losses after strong gains throughout the year.

The retail sales data follows better economic reports on growth and unemployment. These reports have led to speculation the Federal Government might lessen its $85 billion a month bond-buying program at its policy meeting that wraps up Wednesday.

Hotel chain Hilton Worldwide made a successful return to the stock market, gaining 7.5 percent to $21.50 on its first day of trading following its IPO price of $20.

Social networking company Twitter go up by 5.7% after it unveiled a new form of online advertising through its MoPub platform.

Facebook rise 5.0% after the S&P 500 announced the company would be added to the prestigious index after the close of trade Friday.

Technology company Oracle fell 2.8% after RBC Capital slashed its rating to "sector perform" from "outperform," citing tough competition from other cloud computing vendors and spending concerns in China. Morgan Stanley also downgraded Oracle due to uncertain growth prospects.

Women's sports attire chain Lululemon Athletica dived 11.7% after issuing a disappointing profit forecast for the fourth quarter. Lululemon projected profits of 78-80 cents per share, below the 84 cents seen by analysts.

General Motors fell 0.3% after announcing it was selling its remaining stakes in Ally Financial and French automaker PSA Peugeot Citroen.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.88 percent from 2.84 percent Wednesday, while the 30-year increased to 3.90% from 3.88%. Bond prices and yields move inversely.

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