US stocks fell overnight led down by the financials after the government reported a 1.7 per cent fall in wholesale inventories in June, a bigger than expected drop. Investors were also nervous ahead of the Federal Reserve’s decision on interest rates and statement on the economy due out on Wednesday.
The Dow Jones industrial average down 97 points to 9,241. The S&P500 Index fell 13 to 994 and the NASDAQ dropped 23 points to 1,970.
In economic news: The U.S. government reported that productivity in the second quarter rose 6.4 per cent after a rise of 0.3 per cent in the first quarter. Forecasts were for a rise of 5.5 per cent. And the government also reported a 1.7 per cent fall in wholesale inventories in June versus forecasts for a drop of 0.9 per cent.
In company news: Shares in financial lender CIT Group Inc (NYSE:CIT) fell 18.92 per cent to $1.20 after the company delayed filing its quarterly results report, in an effort to give it more time to restructure debt and keep the company from filing for bankruptcy.
Shares in global technology company Corning Incorporated (NYSE:GLW) lost 2.26 per cent to $16.01. The company has suspended production of liquid crystal display glass at a factory in Japan after an earthquake rattled the area. Corning says the suspension is likely to reduce its third-quarter sales by $65 million.
Healthcare products developer and marketer Matrixx Initiatives Inc (NASDAQ:MTXX) shares dropped 9.45 per cent to $5.27. The company posted a $22.8 million loss for the first quarter that was larger than expected, due in part to goodwill impairment charges and the recall of some products. Matrixx also withdrew its guidance for the full year.
And shares in fashion accessories designer Fossil Inc (NASDAQ:FOSL) fell 9.56 per cent to $25.07. The company reported earnings for the second quarter that beat market predictions. The result stronger due to better inventory management and cost cutting initiatives. Fossil also upgraded its outlook for the full year.
Now to the best and worst performers of the NASDAQ Top 100: The best performer was Liberty Media with a 6.39 per cent gain to $9.65. While Amgen and Urban Outfitters also rose. On the downside, Akamai Technologies lost the most ground and fell 5.1 per cent to $18.44. While Joy Global and NII Holdings also closed lower.
