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Wall Street stumbles

Thursday, December 03, 2015 - 01:21

The S&P 500 had its biggest loss since late September. European Central Bank action disappointed investors, and Fed Chief Janet Yellen's comments suggested a rate hike this month. Bobbi Rebell reports.

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Blame central bankers for the steep drop on Wall Street. U.S. and European equities sold off after the European Central Bank's new policy measures disappointed investors. Couple that with Fed Chair Janet Yellen's upbeat economic view that further signaled a rate hike in December. Vespula Capital's Jeff Tomasulo: (SOUNDBITE) JEFF TOMASULO, CEO, VESPULA CAPITAL (ENGLISH) SAYING: "The ECB, the markets are reacting because they expected more stimulus to come. And they got it, but they didn't get it as much. So, that's why you're having the markets sell off today." Investors put Kroger's shares in their shopping carts. The U.S.' largest supermarket operator's quarterly profit rose sharply on higher sales and lower costs. Also up: Costco. Deutsche Bank upgraded the discount retailer's stock to "buy" from "hold." Three analysts upped their price targets after Costco reported a rise in quarterly and monthly sales. Pandora Media's shares dropping. The music streaming company said it'll offer $300 million in convertible debt. Aeropostale shares nose-dived the day after the teen retailer said comparable sales fell in the low double-digits in the quarter so far. Mixed news on the economy. The U.S. service sector cooled in November, and jobless claims rose last week. But new orders for manufactured goods rose in October, and job cuts fell to their lowest level in 14 months. In Europe, shares experienced their deepest drop in four months.

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Wall Street stumbles

Thursday, December 03, 2015 - 01:21