NEW YORK — Stocks tumbled, giving the Dow Jones industrial average its biggest drop since August, as increases in jobless claims and the trade deficit and a slowdown in China’s export growth spurred concern the economy may falter.
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Caterpillar Inc. and United Technologies Corp. slumped at least 2.4 percent, pacing declines among industrial companies.
Exxon Mobil Corp. and Chevron Corp. dropped at least 3 percent as crude oil declined a third day amid investor concern that demand for fuel will
slow.
General Motors Co. decreased 2.6 percent after the largest US automaker said chief financial officer Chris Liddell will leave the company next month.
The Standard & Poor’s 500 index fell 1.9 percent to 1,295.11. The Dow slid 228.41 points, or 1.9 percent, to 11,984.68, its biggest drop since Aug. 11.
European shares tumbled as Spain’s credit rating was cut by Moody’s Investors Service. Oil pared an earlier drop, falling 1.6 percent to $102.76 a barrel, as the Associated Press reported that Saudi Arabian police had opened fire at a protest rally.
“On top of claims popping back up,’’ said James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, “there’s worsening in the trade deficit at a time when the emerging world is slowing down and the Middle East crisis creates an unpredictable environment for oil.
“To make matters worse, Spain gets downgraded, which is an indication that the European crisis may be far from being put to bed.’’
The S&P 500 has fallen 3.6 percent from this year’s highest level, on Feb. 18, as oil surged amid unrest in Libya and the Middle East. The benchmark for US equities has rallied 91 percent from its bear-market low on March 9, 2009, amid government stimulus measures and as corporate earnings beat analysts’ estimates for eight straight quarters.
The index traded near its average price from the past 50 days, according to data compiled by Bloomberg. The S&P 500 has not closed below that threshold, a level watched by analysts who make forecasts based on chart patterns, since Sept. 1.
“Since the 50-day moving average is used by certain momentum-based traders, it would imply lower prices’’ if the index falls below, said Arthur Huprich, an analyst with Raymond James & Associates. Losses may accelerate should the S&P 500 fall below the Feb. 24 intraday low of 1,294.26, he said.
Earlier losses in US futures also came yesterday as China reported an unexpected $7.3 billion trade deficit, the biggest in seven years, buttressing its case against US arguments for faster gains in the yuan.
European shares fell as Spain’s rating was cut to Aa2 by Moody’s, which said the cost of shoring up banks will eclipse government estimates.
“There’s just a lot going on,’’ said Tommy Huie, chief investment officer of M&I Investment Management in Milwaukee. “I don’t think anyone is willing to commit large positions at this point. Investors will take a wait-and-see approach over the next week or two to rethink their strategy until things settle down.’’
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Caterpillar Inc. and United Technologies Corp. slumped at least 2.4 percent, pacing declines among industrial companies.
Exxon Mobil Corp. and Chevron Corp. dropped at least 3 percent as crude oil declined a third day amid investor concern that demand for fuel will
slow.
General Motors Co. decreased 2.6 percent after the largest US automaker said chief financial officer Chris Liddell will leave the company next month.
The Standard & Poor’s 500 index fell 1.9 percent to 1,295.11. The Dow slid 228.41 points, or 1.9 percent, to 11,984.68, its biggest drop since Aug. 11.
European shares tumbled as Spain’s credit rating was cut by Moody’s Investors Service. Oil pared an earlier drop, falling 1.6 percent to $102.76 a barrel, as the Associated Press reported that Saudi Arabian police had opened fire at a protest rally.
“On top of claims popping back up,’’ said James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, “there’s worsening in the trade deficit at a time when the emerging world is slowing down and the Middle East crisis creates an unpredictable environment for oil.
“To make matters worse, Spain gets downgraded, which is an indication that the European crisis may be far from being put to bed.’’
The S&P 500 has fallen 3.6 percent from this year’s highest level, on Feb. 18, as oil surged amid unrest in Libya and the Middle East. The benchmark for US equities has rallied 91 percent from its bear-market low on March 9, 2009, amid government stimulus measures and as corporate earnings beat analysts’ estimates for eight straight quarters.
The index traded near its average price from the past 50 days, according to data compiled by Bloomberg. The S&P 500 has not closed below that threshold, a level watched by analysts who make forecasts based on chart patterns, since Sept. 1.
“Since the 50-day moving average is used by certain momentum-based traders, it would imply lower prices’’ if the index falls below, said Arthur Huprich, an analyst with Raymond James & Associates. Losses may accelerate should the S&P 500 fall below the Feb. 24 intraday low of 1,294.26, he said.
Earlier losses in US futures also came yesterday as China reported an unexpected $7.3 billion trade deficit, the biggest in seven years, buttressing its case against US arguments for faster gains in the yuan.
European shares fell as Spain’s rating was cut to Aa2 by Moody’s, which said the cost of shoring up banks will eclipse government estimates.
“There’s just a lot going on,’’ said Tommy Huie, chief investment officer of M&I Investment Management in Milwaukee. “I don’t think anyone is willing to commit large positions at this point. Investors will take a wait-and-see approach over the next week or two to rethink their strategy until things settle down.’’
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