US stocks fell overnight led down by declines in technology stocks on the Nasdaq and a disappointing new home sales report that fuelled concern for state of the economic recovery. Goldman Sachs also cut its forecast for gross domestic product.
The Dow Jones industrial average fell 119 points to 9,763. The S&P500 Index dropped 21 points to 1,043 and the NASDAQ dropped 56 points to 2,060.
In economic news: According to a report from the Commerce Department, new home sales fell to a 402,000 unit annual rate in August. Sales were expected to rise to an annual rate of 440,000.
Orders for manufactured goods rose 1% in September after falling 2.6% in August.
In company news: Shares in provider of data, Internet, video and voice services Qwest Communications International Inc (NYSE:Q) gained 2.61 per cent to $3.54. The company reported better than expected earnings results for the quarter and raised its full year profit forecast.
Shares in provider of inpatient behavioral healthcare services Psychiatric Solutions Inc (NASDAQ:PSYS) plunged 22.66 per cent to $18.67. The company posted disappointing earnings results for the third quarter that came in below market expectations and also downwardly revised its earnings outlook for 2009 again.
Shares in provider of international seaborne crude oil transportation services General Maritime Corp (NYSE:GMR) lost 14.47 per cent to $6.80. The company’s quarterly earnings came in weaker than expected hit by lower charter rates for its ships that transport crude oil.
And shares in integrated solid waste management company Waste Services Inc (NASDAQ:WSII) rose 11.75 per cent to $5.99. The company’s third quarter earnings came in above market estimates at $6.7 million or 15 cents a share compared to $3.5 million for the same period a year ago. Analysts expected earnings of 11 cents a share.
Checking the NASDAQ Top 100: There were only three companies that closed in positive territory on the NASDAQ overnight. The best performer was Baidu which gained 3.43% to $396.83. Followed by Qualcomm and First Solar.
Illumina was the NASDAQ’s worst performing stock on Wednesday, falling 19.9% to $33.37. Apollo Group and Garmin also finished lower.
