Steep Losses Pull Dow And S&P 500 Down To One-Month Lows

(RTTNews) - With traders reacting negatively to a barrage of economic data as well as some disappointing earnings news, stocks moved sharply lower over the course of the trading day on Thursday. The sell-off extended the recent downward trend by the markets.

Networking stocks showed a substantial move to the downside on the day, dragging the NYSE Arca Networking Index down by 3.1 percent. The loss by the index came after it ended Wednesday's trading at a two-year closing high.

Cisco (CSCO) led the networking sector lower after the industry giant reported slightly better than expected fourth quarter results but provided first quarter guidance toward the low end of analyst estimates. The company also announced plans to cut 4,000 jobs.

Considerable weakness was also visible among biotechnology stocks, as reflected by the 2.5 percent loss posted by the NYSE Arca Biotechnology Index. With the drop, the index ended the session at its lowest closing level in over a month.

Semiconductor stocks also saw significant weakness, resulting in a 2.2 percent drop by the Philadelphia Semiconductor Index. Cree (CREE) and Micron (MU) turned in two of the sector's worst performances.

Tobacco, computer hardware, and healthcare provider stocks also posted notable losses, reflecting the broad based weakness on Wall Street.

Meanwhile, gold stocks bucked the downtrend by the broader markets, driving the NYSE Arca Gold Bugs Index up by 6.1 percent. The strength among gold stocks came as gold for December delivery jumped $27.50 to $1,360.90 an ounce.

Housing stocks also showed a substantial turnaround over the course of the session, with the Philadelphia Housing Sector Index ending the day up by 1.3 percent after falling as much as 2.8 percent and hitting an eight-month intraday low.

The major averages moved roughly sideways going into the close, stuck firmly in negative territory. The Dow tumbled 225.47 points or 1.5 percent to 15,112.19, the Nasdaq plummeted 63.16 points or 1.7 percent to 3,606.12 and the S&P 500 slumped 24.07 points or 1.4 percent to 1,661.32.

The steep losses on the day pulled both the Dow and the S&P 500 down to their lowest closing levels in over a month.