Off the wire
• Irish PM's St. Patrick's mission to U.S. focuses on investment, trade  • Greek gov't to establish new framework for long-term collaboration with China: Varoufakis  • U.S. denounces killing of Bangladeshi-American writer  • Czech President mourns shooting victims  • Mexico captures head of Knights Templar drug cartel  • Xinhua Middle East news summary at 2200 GMT, Feb. 27  • Tribal leaders seek release of Christian Assyrians kidnapped in northern Syria: activists  • Russian military satellite successfully sent into orbit  • 1st LD Writethru: Cyprus probes Syrians for connections with jihadists  • 1st LD Writethru: U.S. dollar mixed amid GDP report  
You are here: 　 Home

1st LD Writethru: U.S. stocks drift lower on soft GDP report

Xinhua, February 28, 2015 Adjust font size:

U.S. stocks fell after volatile trading Friday, but still closed the month on a strong note, as data showed the U.S. economy returned to moderate growth in the fourth quarter of 2014.

The Dow Jones Industrial Average fell 81.72 points, or 0.45 percent, to 18,132.70. The S&P 500 lost 6.24 points, or 0.30 percent, to 2,104.50. The Nasdaq Composite Index dipped 24.36 points, or 0.49 percent, to 4,963.53.

U.S. real gross domestic product (GDP) expanded at a 2.2 percent annual rate in the fourth quarter of 2014, revised down from the advance estimate of 2.6 percent, according to the second estimate released by the Commerce Department Friday.

The revised-figure mainly reflected that the private inventory investment increased less than previously estimated, said the Commerce Department in a statement.

The U.S. economy grew 5 percent in the third quarter and 4.6 percent in the second quarter after contracting in the first quarter of 2014. The economy expanded 2.4 percent year on year in 2014, compared with an increase of 2.2 percent in 2013.

"Growth was sluggish in the fourth quarter, but because growth was 5.0 percent in the third quarter and averaged 3.5 percent in the second half, it really only matters if GDP growth remains sluggish in the first half of 2015," said Chris Low, chief economist at FTN Financial, in a note.

"The huge downward revision to inventories will result in upward revisions to the first quarter GDP estimates of a few tenths, though our estimate is still below 2 percent," Low said.

Other economic data came in mixed Friday. The Chicago Business Barometer plunged 13.6 points to 45.8 in February, the lowest level since July 2009 and the first time in contraction since April 2013, said the Institute for Supply Management-Chicago.

The Thomson Reuters/University of Michigan's February final reading of consumer sentiment index decreased from January's final reading of 98.1 to 95.4, but still beating market expectations.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, climbed 1.7 percent to 104.2 in January from an upwardly revised 102.5 in December, reported the National Association of Realtors Friday.

In Europe, Greece was in the spotlight again as German lawmakers approved the extension of a Greek bailout program on Friday, although doubts about the Greek government's credibility prevail in Germany.

On corporate news, shares of J.C. Penney tumbled 6.80 percent to 8.50 U.S. dollars apiece as the retailer reported an unexpected loss of 59 million dollars in the fourth quarter of 2014, compared with a profit of 35 million dollars a year ago.

For the month, the three major indices rebounded strongly, with the Dow, the S&P 500 and the Nasdaq up 5.6 percent, 5.5 percent and 7.1 percent, respectively. Endite