Stocks ended lower Thursday, capping a quarter of losses, as investors weighed rising U.S. incomes and consumer spending against surging oil prices.
The Dow Jones Industrial Average was down 37.17, or 0.4 percent, to settle at 10,503.76, losing 2.6 percent for the quarter. The Standard & Poor’s 500 Index slipped 0.82, or 0.1 percent, to 1,180.59, also ending with a 2.6 percent loss. The Nasdaq Composite Index fell 6.44, or 0.3 percent, to 1,999.23, down 8.1 percent since the year began.
U.S. consumer spending advanced 0.5 percent in February and underlying inflation slowed, government data showed on Thursday. The Commerce Department said the price index for consumer expenditure climbed 0.3 percent after rising 0.2 percent in January. Stripping out the volatile effect of food and energy prices, the core PCE index advanced only 0.2 percent in February after a 0.3 percent increase the previous month. U.S. government bonds took heart from a weaker employment reading, which showed a 20,000 rise in new claims last week to 350,000.
Among local companies, shares of Tag-It Pacific, Inc. gained 3.2 percent to close at $5.20 after the L.A.-based apparel company reported a fourth-quarter net loss of $17.4 million (96 cents per diluted share), compared with a loss of $6 million (52 cents) for the like period a year earlier. Revenue for the quarter ended Feb. 28 rose 1 percent to $13 million.
Computer Sciences Corp. rose 0.4 percent to $45.85 after the El Segundo-based IT services company said that its Federal Sector business unit has signed 50 previously unannounced contracts valued at around $546.1 million since Jan. 1. The agreements for the company range from six months to 12 years. Civil agencies accounted for 13 awards with a total value of $84 million and Department of Defense agencies accounted for 47 awards worth more than $462 million.
On the down side, shares of Nara Bancorp Inc. lost 18.6 percent to close at $14.05 after the L.A.-based commercial bank said that it would restate its 2002 financial results and it wouldn’t file its 2004 annual report Form 10-K on time. Its stock was downgraded twice on Thursday: to “hold” from “buy” by Cohen Bros. Securities and to “sell” from “hold” by Sandler O’Neill & Partners LP.
