Stocks opened slightly lower as investors digested the European Central Bank's push out of a rate hike until at least next year and a new round of low-cost loans to try to help boost the eurozone economy. Despite the ECB reversal, in-line domestic data on weekly jobless claims and better than expected nonfarm productivity, the market's recent slide has continued. The move is broad-based as each of the averages are down at least 0.6% and continue to endure their worst weekly performance of the year.
ECONOMIC EVENTS: In the U.S., initial jobless claims fell 3,000 to 223,000 in the week ended March 2. Q4 productivity grew at a 1.9% pace, which was a little firmer than expected.
In Europe, the ECB held its key interest rates unchanged and said it now expects the key rates to remain at their present levels at least through the end of 2019, which is later than its prior guidance for no change until at least this summer. The ECB also said a new series of quarterly targeted longer-term refinancing operations, or "TLTRO-III," will be launched, starting in September 2019 and ending in March 2021, that "will help to preserve favorable bank lending conditions and the smooth transmission of monetary policy."
TOP NEWS: Allergan (AGN) said a new experimental treatment for major depression failed in three late-stage studies, and the drugmaker added that it was "deeply disappointed" in the results. David Tepper's Appaloosa hedge fund, which has been pressuring the board of Allergan for changes, said "this latest fiasco" should "make apparent to all that the company's 'Open Science' business model is broken." In early afternoon trading, Allergan shares have gained 5%.
Kroger (KR) shares have fallen 9% after the grocery store operator reported worse than expected sales and profits for the fourth quarter and gave lower than expected fiscal year guidance.
MAJOR MOVERS: Among the noteworthy gainers was Yext (YEXT), which rose 9% after it reported quarterly results and said it plans to hire over 200 employees in Germany over the next five years. Also higher after reporting quarterly results were ArQule (ARQL) and Guidewire (GWRE), which gained a respective 65% and 8%.
Among the notable losers was Kindred Biosciences (KIN), which slipped 10% after Lake Street analyst Brooks O'Neil cut his price target on the stock to $12 from $30 following the company's quarterly report. Also lower after reporting quarterly results were Titan International (TWI) and Burlington Stores (BURL), which fell 20% and 14%, respectively.
INDEXES: Near midday, the Dow was down 127.18, or 0.5%, to 25,546.28, the Nasdaq was down 44.82, or 0.6%, to 7,461.10, and the S&P 500 was down 11.24, or 0.41%, to 2,760.21.
