Wall Street falls in choppy trading

08:54, May 14, 2010      

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Wall Street ended lower after a choppy session on Thursday, with all three major indexes falling more than 1 percent, as investigation against more banks and slow improvement in labor market weighed on equities.

Markets have been struggling to find their footing by focusing on interior signs of recovery following news of the European Union financial rescue package, as investors question whether the plan will be enough to keep sovereign debt issues at bay.

However, there is little to be thrilled for the slow improvement in job market. According to the Labor Department, the number of people applying for unemployment benefits held steady at 444,000 in the latest week. Claims actually fell by 4,000 for the week ended May 8, but data were revised up by 4,000 for the prior week, showing it still needs time for employers to feel comfortable speeding up hiring.

Financial shares lost ground after New York Attorney General Andrew Cuomo has reportedly started an investigation into whether the banks, along with others including Goldman Sachs and Bank of America's Merrill Lynch unit, misled rating agencies about the quality of certain mortgage-backed securities.

Technology shares also failed to attract buyers after a significant rally in the previous session. Cisco Systems Inc. reported late Wednesday a 63 percent jump in third-quarter profit and said it is gaining share in the rebounding corporate technology market. The company reported quarterly income of 2.2 billion U.S. dollars, or 37 cents a share, compared with a profit of 1.35 billion dollars, or 23 cents a share, for the year-earlier period. However, shares of Cisco declined 1.21 dollar, or 4.53 percent, to 25.50 dollars.

In the same time, while officials continue investigating last Thursday's disastrous stock collapse, it was reported that the Securities and Exchange Commission will unwrap newer, broader market circuit breaker rules next week.

The Dow Jones industrial average fell 113.96, or 1.05 percent, to 10,782.95. The S&P 500 declined 14.24, or 1.22 percent, to 1, 157.43 and the Nasdaq composite index was down 30.66, or 1.26 percent, to 2,394.36.



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