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NEW YORK: US stock markets ended mixed Friday in the wake of several bleak economic reports which heightened concerns about slowing growth.
The reports followed several better-than-expected economic readings earlier this week which have renewed debate about whether the US economy will continue expanding or fall into a recession.
The Dow Jones Industrial Average finished down 28.77 points (0.23 per cent) at 12,348.21, capping a two-day decline.
The tech-rich Nasdaq composite finished 10.74 points (0.46 per cent) lower at 2,321.80 while the Standard & Poor's 500 broad-market index gained a slight 1.13 points (0.08 per cent) to 1,349.99.
Stocks struggled for momentum after the New York Federal Reserve said its Empire State Manufacturing Survey showed deterioration in conditions for manufacturers in February.
The downbeat mood prevailed after a government report revealed that higher oil prices had stoked import prices, and as a private survey on consumer sentiment posted a decline.
The manufacturing snapshot's general business conditions index slumped almost 21 points to a reading of minus 11.7, falling below zero for the first time since May 2005.
"Over the next few months we expect domestic weakness to dominate, and industrial output to decline over the first half of 2008. That would be consistent with the negative signal given by today's New York state manufacturing index for February, which pointed to contraction," said Nigel Gault, an economist at Global Insight.
The Federal Reserve has aggressively cut interest rates while Congress and US President George W. Bush have approved a vast economic stimulus package, but economists are divided on whether these measures will be enough to avert a recession or not amid slowing economic momentum.
The Wall Street Journal reported meanwhile that Financial Guaranty Insurance Co. (FGIC), a major bond insurer, had notified regulators that it will request to be split into two companies as it seeks to stave off credit market woes.
The report said the bond insurer was seeking the move because some of the bonds it is exposed to are backed by mortgage investments which are being pressured by the US housing slump.
The housing downturn has triggered a credit crunch which is sweeping through the financial markets and causing difficulties for big bond insurance firms that insured securities linked to complex mortgage investments.
European shares were mostly weaker, the London FTSE tumbled 1.56 per cent to 5,787.60 while in Paris the CAC 40 index lost 1.79 per cent to 4,771.79 and in Frankfurt the Dax shed 1.87 per cent to 6,832.43.
US stock markets will be closed Monday in observance of the President's Day public holiday. - AFP/ac
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