U.S. Stocks Down After Research In Motion Trims Outlook
NEW YORK (MarketWatch) -- U.S. stocks opened lower Wednesday after Research In Motion Ltd. cut its forecast and industry data showed the worst job losses since 2001.
The Dow Jones Industrial Average fell 132.45 points in early action to 8,286.64, with 26 of its 30 components trading lower.
The S&P 500 dropped 15.69 points to 833.12, and the Nasdaq Composite declined 20.82 points to 1,428.98.
Materials, energy and financial shares were hardest hit among the S&P's 10 industry groups.
Early volume on the New York Stock Exchange topped 95 million, and decliners beat advancers about 4 to 1. On the Nasdaq, nearly 60 million shares were exchanged, and decliners outdid advancers roughly 3 to 1.
Ahead of Wall Street's start, BlackBerry maker Research In Motion slashed its earnings and revenue targets for its fiscal third quarter, with the warning coming a day after rival Palm Inc. issued a similar outlook. .
The ADP national employment index found the U.S. private sector shed 250,000 jobs in November, the biggest such loss in seven years. .
"These data will help further prepare the financial markets for the possibility of a weak jobs report on Friday," said Tony Crescenzi, bond market strategist at Miller Tabak & Co.
In other data, the Labor Department said the productivity of U.S. workers was slightly stronger in the third quarter than previously reported.
Thornburg Mortgage Inc. said trade of its shares has been suspended on the New York Stock Exchange because of a price drop under the $1.00 minimum.
Oil futures traded below three-year lows ahead of data on U.S. petroleum supplies due later in the session, with crude for January delivery up 21 cents at $48.64 a barrel on the New York Mercantile Exchange. .
Gold futures fell, with the dollar's rise curbing investor appetite for the precious metal. Gold for February delivery declined $11.5 to $771.8 an ounce on the Nymex. .
Treasurys declined, pushing yields higher, amid concerns that U.S. Treasury Secretary Henry Paulson is considering whether to ask Congress for the second installment of the $700 billion bailout package. Ten-year note yields rose three basis points to 2.72%. .
By Kate Gibson