Thaindian News

New York, Jan 12 (IANS) US stocks closed mixed Wednesday as concerns about the European debt crisis kept pressuring the market, but upbeat US economic situation came as a relief.

The Dow Jones industrial average dipped 13.02 points, or 0.10 percent, to 12,449.45. The Standard & Poor’s 500 inched up 0.40 points, or 0.03 percent, to 1,292.48, Xinhua reported.

The Nasdaq Composite Index jumped 8.26 points, or 0.31 percent, to 2,710.76, logging five- consecutive gains.

Before Wednesday’s opening, Germany reported that its gross domestic product shrank in the last quarter of 2011, which suggested that the debt crisis might already affect core eurozone economies.

Meanwhile, David Riley, head of sovereign ratings for Fitch Ratings, said Wednesday that the European Central Bank (ECB) should purchase more government bonds in order to save Italy and prevent a “cataclysmic” euro collapse.

The ECB was scheduled to hold its monetary policy meeting Thursday. Analysts expected that the central bank would decide to cut key interest rate in an effort to boost the European economy.

On the economic front, the Federal Reserve’s Beige Book indicated that US economic activity increased “at a modest to moderate pace” in the last month of 2011.

The Fed’s judgments were in line with recent US positive economic data and lifted investors’ confidence about US economic outlook.

The Mortgage Bankers Association reported that weekly mortgage applications gained last week as demand for both purchases and refinancing increased, which is another proof of an improving US housing market.

Oil fell to settle below $101 a barrel Wednesday amid worries over the eurozone and after the Energy Information Agency said crude oil inventories soared last week.

Energy companies were under pressure as oil giants like Chevron and ExxonMobil slipped around 1 percent Wednesday.

Energy sector was among the biggest losers, while banks and materials sectors rallied.

On other markets, the euro again dipped to below 1.27 against the dollar as investors were concerned that the ECB would inject more liquidity. Gold gained 0.65 percent to settle at above $1,600 per ounce despite a strong dollar.

Investors paid great attention to upcoming jobless claims and retail sales reports Thursday, while international trade and consumer sentiment reports released Friday also had their impact.