Stocks Slightly Lowered After Weak Reports in Auto Industry

On Wednesday afternoon, U.S. stocks moved slightly lower during trading hours as investors weighed the fresh economic data on U.S. manufacturing, housing and automobile industries and that on China. Among these industries, telecommunications companies were the biggest decliners. Automakers, such as General Motors (NYSE: GM) and Ford Motors (NYSE: F) also dropped after reporting its sales for May.

The Dow Jones index fell 24 points, or 0.1%, to 17,762 at the mid-session trading. The Standard & Poor’s 500 index dropped one point, or 0.1%, to 2,095. The NASDAQ composite index rose two points, or 0.1%, to 4,950.

In auto industry, GM and Ford Motors were down after they reported lower sales for May, the month on which U.S. auto industry should be strong of the year. GM shares sank 3.6% to $30.14, while Ford Motors slid 3.6% to $13.01.

In the oil drilling sector, several oil and gas drilling companies fell. Helmerich & Payne went down 2.9% to $59.37, while National Oilwell Varco declined 2.49% to $32.13. However, Transocean Ltd went up 0.51% to $9.84 and SeaDrill Ltd jumped 3.4% to $3.19.

Surveys showed continuous weakness in China’s factories last month, another sign for the world’s second-largest economy trapped in the mud. The number 50.1 in May, based on a survey of factory purchasing managers, indicates weak expansion in Chinese economy. Numbers above 50 indicate expansion and those below 50 indicate contraction.

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