Thursday, January 13, 2011

Merck, materials companies drag Wall Street lower

US stocks edged lower, hurt by a slide in drugmaker Merck and as falling commodities prices hit shares of natural resource companies.

The Dow Jones industrial average fell 23.54 points, or 0.20 percent, to 11,731.90. The Standard & Poor's 500 Index dropped 2.20 points, or 0.17 percent, to 1,283.76. The Nasdaq Composite Index dipped 2.04 points, or 0.07 percent, to 2,735.29.

European shares fell from the previous session's 28-month highs on concern euro zone inflation pressures could spark a rise in interest rates, while miners were hit by a waning outlook for Chinese copper demand.

The pan-European FTSEurofirst 300 index of top shares was 0.6 percent lower at 1,157.34 points after jumping 1.5 percent on Wednesday.

The Nikkei average rose to its highest close in eight months, buoyed by gains in undervalued financial shares and advances in European and US stocks after a successful bond auction in Portugal eased fears over the euro zone debt crisis.

The benchmark Nikkei ended up 0.7 percent or 76.96 points at 10,589.76. Immediate resistance looms at the May 13, 2010, high of 10,638.23. The next target eyed by investors is the 10,847.90 mark recorded on May 6.

The broader Topix added 0.9 percent to 937.74.