Dow Sinks 63, Nasdaq Cut 38

The Dow lost 63.08 points today to close at 11,406, the Nasdaq lost 37.86 points to close at 2,168 and the S&P 500 lost 12.99 points to close at 1,300. The markets closed lower after economic data showed strong wage growth and strong services sector growth, creating fears the Fed could resume rate hikes to combat inflation. The afternoon's release of the Fed's "beige book" indicated that economic activity continued to expand, but five Districts indicated deceleration while the remaining seven reported little change in the pace of growth.

Volume was light with 1.4 billion shares trading on the NYSE and 1.86 billion on the Nasdaq. Decliners outpaced advancers by a margin of 26:7 on the NYSE and 23:7 on the Nasdaq.

In individual stories, Donaldson Company (NYSE: DCI) rose 16% following stronger-than-expected Q4 results and guidance. On the downside, Wolverine Tube, Inc. (NYSE: WLV) sunk 26% after the company announced that it has terminated all business combination discussions.

Tomorrow traders will be looking for Initial Jobless Claims data at 8:30AM ET and Wholesale Inventories at 10AM ET. Oil Inventories and Natural Gas Stockpiles are both due at 10:30AM ET. Earnings from America's Car-Mart (Nasdaq: CRMT), Korn/Ferry (NYSE: KFY), Cooper Cos (NYSE: COO) and National Semi (NYSE: NSM) will also be of interest.

You May Also Be Interested In

• Deutsche Bank calls Treasury buyback doubling similar to ’operation twist’
• Klarna shares draw top investor interest at Wolfe amid fintech positioning shift
• Citi sees buying opportunity with Viking Holdings