Wall St slump echoes Europe, Asia losses

NEW YORK: US stocks posted modest losses Tuesday amid concerns about cooling economic growth in China and mixed data on the troubled US housing construction sector.

The Dow Jones Industrial Average dropped 68.94 points (0.52 per cent) to finish at 13,170.19.

The broad-market S&P 500 index lost 4.23 points (0.30 per cent) to 1,405.52, while the tech-heavy Nasdaq Composite shed 4.17 points (0.14 per cent) to 3,074.15.

All three indices opened lower, but closed off the sessions lows.

The Wall Street slump echoed losses in European and Asian equities markets after Australian mining giant BHP Billiton warned Tuesday that China's iron ore demand appeared to be flattening, raising growth alarms on the world's second-largest economy.

"The Chinese growth uneasiness was fostered by BHP Billiton noting a slowdown in steel demand from China and a Chinese industry group warning about auto sales in the country," Charles Schwab analysts said.

A mixed US Commerce Department report, meanwhile, showed housing starts fell 1.1 per cent in February, from a strong surge in January, while building permits climbed to a 2008 high.

On Monday, the Dow closed marginally higher but the S&P 500 and the Nasdaq climbed to fresh multiyear highs, lifted in part by news of Apple's plan for a huge dividend and share buyback.

Shares in Apple, which closed Monday above US$600 for the first time, advanced 0.8 per cent to US$605.96.

On the Dow, Alcoa dropped 1.5 per cent while Caterpillar shed 2.6 per cent following sales that disappointed Wall Street.

Walt Disney Company slipped 0.5 per cent after warning its box-office flop, fantasy adventure film "John Carter," is expected to lose US$200 million.

Upscale jeweller Tiffany & Company sparkled, its shares jumping 6.7 per cent after a solid quarterly earnings report.

CVR Energy fell 2.0 per cent to US$26.55. The firm rejected US investor Carl Icahn's unsolicited US$30 per share tender offer on Monday. -- AFP