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1st LD Writethru: U.S. stocks decline amid weak corporate earnings

Xinhua, May 1, 2015 Adjust font size:

U.S. stocks dropped Thursday as a spate of downbeat corporate results and mixed economic data revealed a recent downshift in the U.S. economy, dampening market sentiment.

The Dow Jones Industrial Average lost 195.01 points, or 1.08 percent, to 17,840.52. The S&P 500 was down 21.34 points, or 1.01 percent, to 2,085.51. The Nasdaq dropped 82.22 points, or 1.64 percent, to 4,941.42. The slide reversed the bulk of the month's gains for stocks.

In corporate news, LinkedIn reported a first-quarter loss, citing the strong dollar and slower-than-expected growth. Its stock plunged more than 20 percent after the report.

Time Warner Cable's shares also fell 1.5 percent after posting a disappointing profit and revenue for the first quarter.

Meanwhile, a mixed bag of economic data added to uncertainty about the outlook for interest rates. In the week ending April 25, the advance figure for seasonally adjusted initial jobless claims was 262,000, a decrease of 34,000 from the previous week's revised level, the U.S. Labor Department said Thursday. The latest reading was the lowest level in 15 years and below market consensus of 288, 000.

The upbeat employment data came just one day after the U.S. real gross domestic product showed a sharp slowdown from the fourth quarter's 2.2 percent pace.

According to an advanced estimate released by the U.S. Commerce Department Wednesday, the U.S. economy increased at an annual rate of 0.2 percent in the first quarter this year, below expectations of 1-percent growth.

The Federal Reserve downgraded its outlook of the U.S. labor market and economy in a statement released Wednesday. During the two-day monetary meeting, Fed officials focused mainly on the country's economic weakness in recent months, saying U.S. economic growth has "slowed" since last Fed meeting in March. Endite