DJI-NEW YORK, Aug 2 (Reuters) - U.S. stocks fell for a fourth day on Thursday after European Central Bank President Mario Draghi disappointed investors hoping for immediate action to contain the euro zone debt crisis.
One of Wall Street's top market makers, Knight Capital Group KCG.N, was fighting for its survival after a trading glitch that roiled markets on Wednesday wiped out $440 million of the firm's capital.
However, the market focused mostly on the ECB, though traders were also looking ahead to Friday's closely watched U.S. jobs report which could bring a volatile end to an eventful week.
Draghi said the ECB would gear up to buy Italian and Spanish bonds on the open market but would only act after euro zone governments have activated bailout funds to do the same, disappointing traders after his pledge last week to do "whatever it takes" to save the euro left many thinking action was imminent. (nL6E8J2BUX) (nL6E8J1JXK)
"Today people were looking for concrete steps and an outline of exactly what path the ECB would take to do that, and there weren't any," said Brian Gendreau, market strategist with Cetera Financial Group in Gainesville, Florida.
"Just as the market went up on the 'whatever it takes' comments it is coming down on the lack of specificity."
Markets rallied late last week in part on hopes for stimulus from the Federal Reserve but mostly as expectations grew the ECB would take action to protect the euro. Friday's jobs report could give a stronger indication whether the Fed, which has a freer hand than the ECB, will act shortly.
Data showed the number of Americans filing new claims for jobless benefits rose last week and manufacturers suffered an unexpected drop in orders in June, suggesting the economy is struggling to break out of a soft patch. (nL2E8J23AO)
The Dow Jones industrial average .DJI fell 92.18 points, or 0.71 percent, to 12,878.88. The S&P 500 Index .SPX dropped 10.14 points, or 0.74 percent, to 1,365.00. The Nasdaq Composite .IXIC lost 10.44 points, or 0.36 percent, to 2,909.77.
Major indexes fell for a fourth day running, totaling weekly losses so far of more than 1.5 percent.
Knight Capital shares fell after Wednesday's trading error forced the company to seek new funding. The stock closed down 62.8 percent at $2.58, their lowest since early October 1998. (nL2E8J27QE)
According to Thomson Reuters data, 67 percent of the 385 S&P 500 components that have reported results so far this quarter have beat earnings estimates. In the past four quarters, the average beat rate has been 68 percent.
General Motors Co GM.N posted a smaller-than-expected loss in Europe that helped the No. 1 U.S. automaker post a better-than-expected second-quarter profit. Shares slipped 2.6 percent to $19.14. (nL2E8J2263)
U.S. retailers reported stronger-than-expected sales for July but the gains were largely due to discounting and do not necessarily signal vigorous consumer spending for the rest of the year. (nL2E8J1JM5)
About 7.1 billion shares exchanged hands on the New York Stock Exchange, NYSE MKT and Nasdaq, above the year-to-date daily average of 6.75 billion.
About 8 issues fell for every 5 that rose on the NYSE and on Nasdaq the decline/advance ratio was roughly 7 to 5.
NYMEX- NEW YORK, Aug 2 (Reuters) - U.S. crude futures fell 2 percent on Thursday, pressured by reports showing a rise in jobless claims and a drop in factory activity in the United States, along with disappointment that the European Central Bank did not offer more concrete steps to boost economic growth.
CBOT SOYBEAN-Soybean futures on the Chicago Board of Trade fell for a third day on Thursday on profit-taking and signs of slowing demand for U.S. soy, traders said.
• USDA reported export sales of U.S. soybeans in the week ended July 26 at 246,400 tonnes for old and new crop years combined, the smallest combined-year total in nine months. New-crop sales were dented by a net cancellation of purchases by China of 163,500 tonnes. (nL2E8J24UP)
• USDA reported weekly U.S. soymeal sales at 270,800 tonnes (old and new crop years combined) and soyoil sales at 10,200 tonnes.
• Light showers with some locally heavier amounts fell on the U.S. Midwest crop belt overnight, providing some relief from the worst drought in a half century, meteorologists said.
• But updated midday forecasts indicated a tropical weather system now at the edge of the Caribbean Sea will not bring any moisture to the area when it makes landfall in about 10 days. (nL2E8J24RL)
• Argentina is not studying a possible increase in soy export taxes for now, an Economy Ministry source with direct knowledge of the situation said, knocking down market rumors of an imminent increase. (nL2E8J29LO)
• Market underpinned by concerns about the size of the U.S. soy crop. Brokerage INTL FC Stone late Wednesday projected 2012 U.S. soybean production at 2.730 billion bushels, with an average yield of 36.2 bushels per acre. (nC3E8GM02B)
• Crushers in top global soy buyer China raised their purchase of soybean from the government’s weekly cheap offers to 400,907 tonnes, the government said on Thursday. (nL4E8J23JM)
• CBOT reported no deliveries of soybeans or soymeal deliveries against August contracts. Soyoil deliveries totaled 2,445 contracts, with no strong commercial stoppers.
FCPO- SINGAPORE, Aug 2 (Reuters) - Malaysian crude palm oil ended flat after touching its lowest in the week on Thursday as wet weather forecast in the U.S. Midwest brought relief to drought-hit soy crop, easing some concerns of tighter oilseed supplies.
Investors were also left disappointed after the U.S. Federal Reserve stopped short of signalling fresh monetary stimulus, and are now looking ahead to the European Central Bank meeting later in the day for major policy action. MKTS/GLOB
"The market is pretty much disappointed that so far there's no promise coming from the Fed," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.
"Also, we have been talking about the U.S. dry weather for so long. The weather effect is no longer a bull factor for oilseeds but when the weather changes it becomes a bear factor."
The benchmark October palm oil futures FCPOc3 on the Bursa Malaysia Derivatives Exchange ended one ringgit higher at 2,946 ringgit ($944) per tonne, supported by last-minute buying. Prices earlier touched a low at 2,905 ringgit, a level last seen on July 27.
Traded volumes stood at 23,869 lots of 25 tonnes each, slightly lower than the usual 25,000 lots.
A better chance of rain was expected late this week in portions of the drought-stricken U.S. Midwest, bringing some relief to the struggling soybean crops, an agricultural meteorologist said on Wednesday. (nL2E8J1276)
Market players have been pricing in the damage done by the relentless drought on soybean crops in the United States that squeezed soybean oil supply.
A drop in soybean oil supply could shift more vegetable oil demand to the cheaper palm oil.
Traders are looking out for July stock figures in No.2 producer Malaysia, which could climb on slowing exports and better production.
Malaysian palm oil exports fell by 15 percent and 19 percent in July from a month ago, according to cargo surveyors Intertek Testing Services and Societe Generale de Surveillance respectively. PALM/ITS PALM/SGS
While the U.S crop scares appear to be receding, traders are eyeing El Nino's dry weather pattern which could return to Southeast Asia by end of this year and hurt production for top exporters Indonesia and Malaysia.
REGIONAL EQUITY- Aug 2 (Reuters) - Most Southeast Asian stock markets ended weaker on Thursday with Singapore falling from a near one-year high after the U.S. Federal Reserve stopped short of signaling fresh stimulus measures, disappointing investors.
Investors were also cautious ahead of a European Central Bank meeting which is expected to discuss policy actions, including resuming its bond-buying programme, to help drive down borrowing costs for Italy and Spain, which have soared to levels considered unsustainable for their economies.
Jakarta's Composite Index .JKSE fell 0.9 percent despite a foreign inflow of $16.6 million, Singapore's Straits Times Index .FTSTI lost 0.5 percent from its highest close since Aug. 4 last year, and the Philippines .PSI edged down 0.1 percent.
Bucking the trend, Malaysia .KLSE added 0.1 percent with a net foreign buying of $11.59 million, while Vietnam .VNI, the region's smallest bourse, added 0.9 percent.
Thailand .SETI was closed for a national holiday
