US stocks finished lower for a fourth straight session on Thursday, 07 March 2019 on mounting evidence of a slowing global economy after the European Central Bank slashed its gross domestic product forecasts and pledged continued support for the flagging eurozone economy.

The Dow Jones Industrial Average fell 200.23 points, or 0.8%, to 25,473.23. The S&P 500 index dropped 22.52 points, or 0.8%, to 2,748.93, and the Nasdaq Composite Index shed 84.46 points, or 1.1%, to 7,421.46.

The ECB announced new measures to support a slowing economy, including a round of long-term loans to European financial institutions, while issuing a surprise pledge to hold off on any interest-rate increases until at least the end of the year. The announcement follows updated growth projections from the central bank, with the ECB forecasting growth of just 1.1% in 2019, down from a previous estimate of 1.7%.

The European Central Bank issued a dovish-minded policy stance, which was an acknowledgement of the slowing growth in the eurozone. The ECB left its key interest rates unchanged, but it also (1) pushed out its guidance for rates to stay at their present level at least through the end of 2019, versus prior guidance of at least through the summer of 2019; and (2) reintroduced a targeted long-term refinancing operation (TLTRO) that will begin in September 2019 and continue through March 2021.

Economic data at Wall Street showed that initial claims for the week ending March 2 were low at 223,000 (consensus 224,000), as expected, while continuing claims for the week ending February 23 fell by 50,000 to 1.755 million. The key takeaway from the report is that the low level of initial claims is consistent with prior readings that have been consistent with the understanding that labor market conditions remain tight.

Nonfarm business sector labor productivity increased 1.9% (consensus 1.7%) in the fourth quarter. Unit labor costs increased 2.0% (consensus 1.5%).The key takeaway from the report is that the annual average productivity from 2017 to 2018 was a lowly 1.3%, which is below the long-term rate of 2.1% from 1947 to 2018. Total outstanding consumer credit increased by $17.0 billion in January (consensus $17.0 billion) after increasing a revised $15.4 billion (from $16.5 billion) in December. Once again, credit growth was rooted in nonrevolving debt, like car loans and student loans, while revolving credit (credit cards) expanded at a more muted pace.

Among stocks under focus, Xerox shares dropped 2% after the print-services and document technology company announced that it planned to reorganize its corporate structure into a holding company, of which it will become a wholly owned subsidiary. Shares of Kroger sank 10% after the food-and-drug retailer announced fourth-quarter earnings that fell short of Wall Street expectations. Burlington shares tumbled 12% after the discount retailer posted fourth-quarter earnings that beat expectations but missed on revenue.

Crude oil futures posted a gain on Thursday, 07 March 2019 at Nymex buoyed by data showing a fall in February OPEC output to its lowest in nearly four years.Gasoline futures, meanwhile, continued their sharp advance to finish at a multimonth high after U.S. data Wednesday showed a drop in U.S. gasoline stockpiles that was more than double market expectations.

West Texas Intermediate crude for April delivery tacked on 44 cents, or 0.8%, to settle at $56.66 a barrel on the New York Mercantile Exchange. May Brent rose 31 cents, or 0.5%, to $66.30 a barrel on ICE Futures Europe.

Although OPEC is curbing production, however, U.S. crude supplies have posted gains in six of the past seven weeks and production continues to sit at a record. The Energy Information Administration on Wednesday reported that U.S. crude supplies rose by 7.1 million barrels and total domestic crude production remained at a record 12.1 million barrels a day for the week ended 1 March 2019.

Looking ahead, investors will receive the Employment Situation Report for February and the Housing Starts and Building Permits Report for January on Friday.