This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Markets Tumble on Soft Consumer Spending While Twitter Soars

NEW YORK (TheStreet) -- Markets tumbled the most in a month on Thursday as soft consumer spending growth in the third-quarter raised questions about the overall strength of the economic recovery. Overshadowing disappointing headlines was Twitter's more than 70% rise on the day of its initial public offering.

The S&P 500 fell 1.3% to 1,747.19 while the Dow Jones Industrial Average was off 0.97% to 15,594.49. The Nasdaq lost 1.9% to 3,857.33. 

U.S. economic growth notched 2.8% for the third quarter, the Commerce Department said Thursday. It was the fastest rate of growth in a year, reflecting compaies move to replenish inventory and a rise in state governments spending. Yet trends within the report showed weakness - consumer spending rose just 1.5%, or the slowest pace in more than 3.5 years.

"Given the majority of the upside surprise reflected by inventory accumulation, we would suggest taking the apparent acceleration in growth with some caution," Barclays Research senior U.S. economist Peter Newland said in a note.

Initial jobless claims fell 9,000 to 336,000 in the week ending November 2, the Labor Department reported Thursday. Economists were expected a slip to 335,000.

Twitter began trading Thursday on the New York Stock Exchange after its initial public offering was priced $26 a share. The stock opened at $45.10 a share, and closed the day up 73% to $44.90. The San Francisco-based company sold $1.82 billion in shares, or just more than 12% of its outstanding stock, in an offering that gives the micro-blogging site a valuation of roughly $14.2 billion. Twitter listed on the NYSE under symbol 'TWTR.'

In corporate news, Toll Brothers (TOL) said it would buy the homebuilding business of California's Shapell Industries for around $1.60 billion in cash. Management also announced preliminary fourth quarter revenues of $1.04 billion up 65 percent on the prior period and beating consensus expectations. Toll shares rose 0.46% to $32.67.

Whole Foods (WFM) plunged 11.2% to $57.27 after the natural and organic food supermarket chain cut its fiscal 2014 same-store sales guidance. The company reported fourth quarter earnings of 32 cents a share on revenue of $2.98 billion after market close on Wednesday, versus the average analyst estimate of 31 cents a share on revenue of $3.04 billion.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
TWTR $51.46 0.12%
AAPL $127.29 -0.24%
FB $84.18 1.30%
GOOG $534.94 -0.08%
TSLA $206.57 0.63%

Markets

DOW 18,047.18 +12.25 0.07%
S&P 500 2,106.99 +6.59 0.31%
NASDAQ 5,022.8560 +28.2540 0.57%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs