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FROM MORRISON SECURITIES PTY LTD.:
U.S. STOCK MARKETS
U.S. stocks pared their losses to trade a touch lower as investors took a cautious stance on the European economic outlook after the Dow's rise to the cusp of new highs.
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The Dow Jones Industrial Average slipped 10 points, or 0.1%, to 12955 in midday trading. The Standard & Poor's 500-stock index shed three points, or 0.2%, to 1360 and the Nasdaq Composite eased 10 points, or 0.3%, to 2939.
Wal-Mart Stores, which dragged the blue-chip Dow lower Tuesday, was again the Dow's worst performer, losing 2.1%. The retailer has lost 5.9% so far this week. Hewlett-Packard was also weak, dropping 1.1% ahead of its fourth-quarter earnings report, due after the closing bell.
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H-P was dragged lower after rival computer maker Dell disappointed Wall Street's earnings expectations, and provided a first-quarter sales outlook that was below current projections. Dell skidded 6.1%.
The Dow is pulling back after peeking briefly above 13000 in intraday action Tuesday. The Dow finished that session with a modest gain of 16 points; it hasn't closed above 13000 since May 2008.
Also hurting sentiment was an unexpected contraction in the Euro zone's business activity in February. Markit Economics' purchasing managers' index fell to 49.7 from January's 50.4, below expectations of a rise to 50.8. Readings below 50 imply contraction.
In U.S. economic news, January sales of existing homes topped expectations with a 4.3% monthly gain, but December's number was revised sharply lower, damping some of the positive sentiment. In corporate news, Johnson & Johnson edged up 0.1% after picking company veteran Alex Gorsky as its next chief executive, succeeding William Weldon, who has been the health-products giant's leader since 2002. Garmin rallied 8.4% after the satellite-navigation company reported fourth-quarter earnings and revenue that were well above expectations, and provided an upbeat 2012 outlook.
EUROPEAN STOCK MARKETS
European stock markets finished lower Wednesday, as investors remained uninspired by Greece's latest bailout deal and expressed disappointment about data showing that business activity in the region unexpectedly slowed.
Indeed, action taken by Fitch Ratings, putting Greece in selective default, has been shrugged off by the market, with analysts saying it was already widely expected.
Fitch cut Greece's credit rating to single-C from triple-C and reiterated that a bond-swap agreement with private creditors would be a restricted default.
A reading on business activity in the euro zone, which unexpectedly contracted in February, added pressure on sentiment. Markit Economics' purchasing managers index fell to 49.7 from January's 50.4, below expectations of a rise to 50.8.
Readings below 50 imply contraction. Meanwhile, preliminary readings showed that business activity in France and Germany continued to expand in February, albeit at a slower pace than in January.
