US stocks close lower ahead of earnings and data
Wall Street stocks ended lower on Thursday as investors awaited earnings reports from major tech companies after the closing bell, and official employment data the following morning. The fall extended a pullback after Fitch downgraded the United States from its top-tier AAA credit rating, citing the country's weakening governance and rising debt burden. The Dow Jones Industrial Average slipped 0.2 percent to 35,215.89, while the broad-based S&P 500 fell 0.3 percent to 4,501.85. The tech-heavy Nasdaq Composite Index dipped 0.1 percent to 13,959.72. This marked a continuation of the week's trends, said Karl Haeling of LBBW. The credit downgrade by Fitch -- which attracted strong disagreement from the White House and Treasury earlier this week -- is not expected to have a lasting impact, said Haeling. But he added that it drew attention to the US budget deficit, which appears to be bigger than expected, while stronger-than-anticipated economic data "makes people nervous" given their potential bearing on interest rate decisions. "A lot of economic data confirmed how resilient the US economy remains," said Edward Moya of OANDA in a note. With services sector activity still expanding, though at a slower rate, and jobless claims still low, the Federal Reserve might need to deliver further rate increases, he said. Among individual firms, chip company Qualcomm's shares ended 8.2 percent lower after it forecast weaker profits than anticipated in the upcoming quarter. Toymaker Hasbro shares edged up 1.1 percent as it announced the sale of its eOne film and television business to Lionsgate for around $500 million. (AFP)