U.S. stock markets fell yet again today, marking the fifth day of losses in the past seven. The Dow Jones Industrial Average (INDEX: ^DJI) started sharply lower in early trading, ending down 71.5 points, or 0.5% lower. Both the S&P 500 and Nasdaq both declined 0.5% as well. Several macroeconomic indicators came in under their expected figures, leading to steeper-than-average losses in some key sectors.
Around the markets
A disappointing U.S. durable-goods report drove the capital goods sector down 1.2% on the day. Although the figure grew at a 2.2% clip, the metric fell well below analyst expectations of a 3% increase. This led to steep losses in the companies atop the industry. Heavy-equipment maker Caterpillar (NYSE: CAT) notched the greatest decline today, falling 3.5%.
The basic-materials sector also took a beating today, as a weak reading in crude oil consumption also generated concern about the strength of the global economy. On the day, the sector declined 1.4%, making it the hardest hit of all major sectors. Aluminum producer Alcoa (NYSE: AA) fell the second most on the Dow, dropping 2.3% on the day. Both Caterpillar and Alcoa have fallen around 4.3% over the past week, pulling back some of their impressive gains thus far in 2012.
Energy-related companies also declined sharply today. Both of the major oil stocks on the Dow fell more than the average itself, with Chevron (NYSE: CVX) and ExxonMobil falling 1.1% and 0.9% on the weak oil report. Other energy-related stocks didn't escape the carnage today. Nat-gas play Westport Innovations (Nasdaq: WPRT) fell sharply. The Canadian company that makes natural gas conversions for petroleum-based engines fell by 4.9%. Investors have high hopes for the firm. As oil prices remain substantially higher than natural gas prices, Westport should benefit from people and businesses migrating to the lower-cost fuel.
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