US stocks slightly lower in volatile trade

NEW YORK: US stocks zig-zagged around the break-even line in volatile trade Thursday before ending slightly lower, pulled down in part by Walmart’s disappointing earnings.

The giant global retailer sank 3.7 per cent after its quarterly revenues fell below expectations and it said it was investigating possible corruption in Walmart operations in India, China and Brazil.

The Dow Jones Industrial Average finished down 28.57 points (0.23 per cent) at 12,542.38.

The broad-market SandP 500 lost 2.16 (0.16 per cent) at 1,353.33, while the tech-rich Nasdaq Composite slipped 9.87 (0.35 per cent) to 2,836.94.

There was little good news to push stocks higher: the eurozone economy registered a second straight quarter of negative growth; US Republicans and Democrats appeared ready for a clash over how to avoid the fiscal cliff; and tensions were higher in the Middle East as Israel launched a new air assault on Gaza.

Walmart’s third-quarter earnings set the tone. Its quarterly net income rose nine per cent to US$3.63 billion, but revenue at stores opened at least a year climbed only 1.5 per cent, below expectations.

The company also admitted that in addition to the US investigation into allegations the company bribed Mexican officials, violating the US Foreign Corrupt Practices Act, that internal probes were under way on possible FCPA violations in Brazil, China and India.

Cisco (+1.6 per cent) and Bank of America (+1.1 per cent) led gainers on the Dow, while Walmart and Verizon (-1.3 per cent) topped the losers.

On the Nasdaq, Apple lost another 2.1 per cent to hit US$525.62, far below its September peak of US$705.07.

Facebook edged 0.9 per cent lower after surging nearly 13 per cent Wednesday amid a rush of short-covering linked to expectations the shares would sink when restrictions on share selling by insiders were lifted this week.

United Airlines shares were off 2.4 per cent amid reports of widespread flight cancellations due to a computer glitch. — AFP