Major US stock indexes fell moderately amid falling shares of Apple (AAPL) after the Finnish Nokia said it has filed a series of lawsuits against the iPhone maker for patent infringement.
In addition, as it became known, the US economy grew faster than previously estimated in the third quarter, noting its best performance in two years, on the back of strong consumer spending and a jump in soybean exports. Gross domestic product grew by 3.5% instead of the previously reported 3.2%, the Commerce Ministry said in its third evaluation. The growth was the strongest since the third quarter of 2014 after increasing by 1.4% in the second quarter.
At the same time, the number of Americans who applied for unemployment benefits rose to a six-month high last week, but remain below the level that is associated with a strong labor market. unemployment initial claims for benefits rose by 21,000 and reached a seasonally adjusted 275,000 for the week ending 17 December. This is the highest rate since June. The data for the previous week were not revised.
It should also be noted that new orders for US-made core capital goods rose more than expected in November, amid strong demand for machinery and primary metals, suggesting that the effect on the production of some of the negative factors associated with the oil, began to fade. Non-defense capital goods orders excluding aircraft, closely watched gauge of business spending plans, rose 0.9% after growth of 0.2% in October.
Also, the Commerce Department reported that consumer spending, which accounts for over two-thirds of US economic activity, rose 0.2% after increasing 0.4% in October (revised from + 0.3%). Economists had expected an increase of 0.3%.
DOW index components closed mostly in the red (17 of 30). Outsider were shares of Wal-Mart Stores, Inc. (WMT, -2.40%). Most remaining shares rose Verizon Communications Inc. (VZ, + 1.29%).
Most of the S & P sectors registered a decline. the services sector fell the most (-1.1%). The leader turned conglomerates sector (+ 1.8%).
At the close:
Dow -0.12% 19,918.95 -23.01
Nasdaq -0.44% 5,447.42 -24.01
S & P -0.19% 2,260.94 -4.24