New York Report: US services a drag on stocks

US STOCKS declined slightly yesterday after mixed economic reports, which showed a slowdown in growth in the US services sector and a rebound in new orders for factory goods.

The technology sector was the day’s leading decliner after a downgrade by Morgan Stanley. Notes on Twitter and eBay weighed on the shares of both companies.

Service industry growth slowed sharply in China in December but picked up across most of Europe.

In the United States, data showed the pace of growth in the services sector slowed for a second straight month in December while new orders for US factory goods rebounded in November.

The Dow Jones industrial average fell 49.93 points or 0.3 per cent, to 16,420.06. The S&P 500 lost 6.21 points or 0.34 per cent, to 1,825.16. The Nasdaq dropped 25.346 points or 0.61 per cent, to 4,106.56.