This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Slip on Deep Drop in U.S. Home Sales


NEW YORK (TheStreet) -- Major U.S. stock markets slipped Wednesday amid tepid Chinese economic data and a 14.5% month-over-month drop in U.S. new-home sales. Procter & Gamble (PG) posted revenue that fell short of expectations.

WATCH: More market update videos on TheStreet TV

The Dow Jones Industrial Average lost 0.08% to 16,501.65, while the S&P 500 closed off 0.22% to 1,875.39. The Nasdaq declined 0.83% to 4,126.97.

  • Annualized sales of new single-family homes fell much more than expected in March to 384,000, from a slightly upwardly-revised 449,000.
    • "The plunge [in new U.S. home sales] raises some difficult questions about the sustainability of the housing recovery but we aren't sounding the alarm bells just yet, not least because this series can be subject to large revisions," Capital Economics wrote in a note on Wednesday. 
  • Chinese factory activity contracted for a fourth consecutive month, amid calls for more policy support to help economic growth. The HSBC/Markit flash Purchasing Managers Index (PMI) for April rose to 48.3 from March's result of 48.0 but remained below the 50-mark for expansion.
  • In international markets, the Hang Seng closed 0.97% lower while the Nikkei was 1.09% higher. Germany's DAX fell 0.58% while London's FTSE was 0.11% lower. Tensions continue in Ukraine, where armed pro-Russia groups have occupied areas in the eastern region and refused to leave until the country's government resigns.
  • U.S. manufacturers indicated a strong start to the second quarter of 2014, with the latest survey highlighting expanding levels of production, new work and employment, according to Markit Economics. At 55.4 in April, the Markit Flash U.S. Manufacturing Purchasing Managers' Index PMI was down fractionally from 55.5 in March but still well above the neutral 50 value. Expectations were for a 56.3 result in April.
  • Big losers in the S&P 500 included International Game Technology (IGT), off 10.3%, Intuitive Surgical (ISRG), down 11.5%, and Amgen (AMGN), sliding 5%. Some analysts suggested the global outlook for International Game Technology was challenged when the company posted results on Tuesday.
  • Delta Air Lines (DAL) jumped 6.1% after beating first-quarter earnings expectations by 4 cents at 33 cents a share. Boeing (BA) added 2.4% after topping quarterly earnings estimates by 20 cents at $1.76 a share.
  • Facebook reported earnings of 34 cents a share, ex-items, which beat Wall Street expectations by 10 cents. Shares were gaining more than 2.5% in after hours trading. Earlier, the Federal Trade Commission has given Facebook antitrust approval to acquire virtual reality goggle maker Oculus VR. Apple is slated to post fiscal second-quarter earnings of $10.19 a share.
  • Apple (AAPL) was expected to report after the market closed.
  • Procter & Gamble was edging lower after posting revenue below expectations. Revenue was $20.56 billion, down from $20.6 billion in the same period last year.
  • Gilead Sciences (GILD) rose 1.4% after announcing late Tuesday a more than doubling in first-quarter profit to $1.33 a share, bolstered by sales of its hepatitis C drug Sovaldi.
-- By Andrea Tse, Jane Searle and Joe Deaux in New York

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs