- POSTED: 27 Jun 2014 04:48
US stocks finished modestly lower following disappointing economic data even as shares for video camera maker GoPro soared in their first day of trade.
NEW YORK: US stocks on Thursday finished modestly lower following disappointing economic data even as shares for video camera maker GoPro soared in their first day of trade.
The Dow Jones Industrial Average shed 21.38 points (0.13 per cent) at 16,846.13.
The broad-based S&P 500 dipped 2.31 (0.12 per cent) to 1,957.22, while the tech-rich Nasdaq Composite Index edged down 0.71 (0.02 per cent) to 4,379.05.
US consumer spending, which accounts for more than two-thirds of US economic activity, rose a mere 0.2 per cent in May after a flat April.
The report put markets in a sour mood, pushing the S&P 500 as low as 1,944.69 early in the session.
The rally in the afternoon is characteristic of "a very complacent bullish environment," said Michael James, managing director of equity trading at Wedbush Securities.
"You have to be invested. You can't let the market keep going and not be in it."
GoPro, which makes small video equipment popular among users of social media, jumped 30.6 per cent on the Nasdaq from its initial public offering price of $24 to close at $31.34.
Microblogging company Twitter gained 5.0 per cent.
Retailer Bed Bath & Beyond sank 7.2 per cent as it projected second-quarter earnings of $1.08-$1.16 per share, below the $1.20 seen by analysts.
Consultancy Accenture lost 1.8 per cent as it trimmed its 2014 profit forecast from $4.50-$4.62 per share to $4.50-$4.54.
Tobacco company Philip Morris dropped 2.7 per cent as it slashed its 2014 earnings forecast, citing major price discounting at "the low end" of the Australian market and "an improving but weak macro-economic environment in the EU," among other factors.
Aluminum producer Alcoa gained 2.7 per cent after announcing a $2.9 billion purchase of Firth Rixson, a British manufacturer of aerospace jet engine components. Alcoa said the deal would boost its ability to win additional business in the aerospace sector.
Bond prices rose. The yield on the 10-year US Treasury fell to 2.53 per cent from 2.56 per cent Wednesday, while the 30-year dropped to 3.34 per cent from 3.38 per cent. Bond prices and yields move inversely.