Equities dip on fragile investor sentiment

Dow Jones: 12,198.19 (–22.40) S&P 500: 1,310.23 (–3.57) Nasdaq: 2,730.68 (–12.38)US STOCKS fell yesterday, as the corporate outlook was clouded ahead of earnings and uncertainty continued to creep from abroad, while volume hit its lowest level of the year.

A warning from hotel operator Marriott International hurt hotel and other consumer shares, amid expectations of other negative corporate earnings pre-announcements.

“Corporations now have several excuses that seem to resonate on Wall Street, from bad weather in January to the Middle East to the Japanese earthquake impacting the supply chain or sentiment,” said Adam Parker, chief US equity strategist at Morgan Stanley.

Marriott International shares fell 6.3 per cent to $35.30.

Stocks spent most of the day in positive territory, with the SP 500 hitting a session high near 1,320 for a second straight session, driven by strength in the telecommunications sector and consumer spending data.

Japan’s natural disasters and nuclear crisis along with civil unrest in the Middle East and Libya have increased market volatility in recent weeks.

The Dow Jones industrial average lost 22.40 points, or 0.18 per cent, to 12,198.19.

The Standard & Poor’s 500 Index fell 3.57 points, or 0.27 per cent, to 1,310.23.

The Nasdaq Composite Index fell 12.38 points, or 0.45 per cent, to 2,730.68.

The S&P telecom index rose 1.4 per cent after a brokerage upgraded a number of companies, including Dow components ATT and Verizon Communications.

ATT rose 1.8 per cent to $29.36 and Verizon gained 1.2 per cent to $37.75, curbing losses in the blue-chip index.

Eastman Kodak rose 5.3 per cent at $3.58 and was the NYSE’s third-most active stock after a US trade panel agreed last week to review a case that could bring the struggling photography company hundreds of millions of dollars in royalties.

eBay plans to buy e-commerce service provider GSI Commerce for nearly $2 billion to build up its online market places as it ramps up its battle with Amazon.com.

GSI shares surged 50.7 per cent to $29.20 in Nasdaq trading while eBay shares lost 4.3 per cent to $30.34.

Amazon slid nearly 1 per cent to $169.35. – (Reuters)