U.S. stocks slipped on Thursday led by falls in financial shares and following weak Chinese economic data, but a late-day rebound in oil prices limited the day's decline. Roselle Chen reports.
A drop in Chinese exports dragged down the U.S. stock markets Thursday. So did concerns over a potential interest rate hike. Data from the CME Group's FedWatch tool showed traders are now pricing in about a seventy percent chance for a hike in December. Losses were broad-based. Berkshire Hathaway, Bank of America, Wells Fargo, JPMorgan and other financial stocks leading the way. Frank Cappelleri of Instinet. (SOUNDBITE) FRANK N. CAPPELLERI, EXECUTIVE DIRECTOR, INSTITUTIONAL EQUITIES, INSTINET, (ENGLISH) SAYING: "Looking back at what's happened to the banks over the last few years or so, it's no secret that when rates have gone up, they're doing well. And the carry, the original bank ETF actually started to pull back at the end of 2013, and ten-year hit three percent, it's pretty high right now, but, you know, that could be seen cut in half over the next three years or so." Deutsche Bank's shares dropped after sources told Reuters that the bank will freeze hiring to cut costs. Marriott Vacations plunged after reporting a sharp decline in quarterly revenue from Europe. In economic news, U.S. jobless claims hit a 43-year low last week, and rising gas and food costs drove U.S. import prices higher. Across the pond, the underwhelming Chinese trade data sent the markets down.