| Stocks End Mixed On Economic Data |
| Sep-04-2012 |
| Keywords: stocks, lower, decline, manufacturing |
Stocks kickoff the month with mixed results on Wall Street as investors digest disappointing news on the U.S. economy.
The Dow Jones Industrial Average lost 55 points on the day. The Nasdaq Composite scratched out an 8 point gain, while the S&P 500 finished with a 2 point loss.
Investors' first day back from the long holiday weekend beginning on a cautious note as the market digests disappointing news on the U.S. economy.
Manufacturing activity last month weakened, with the ISM manufacturing index for the month of August coming in at 49.6, missing estimates of 50.2. The weaker than expected reading marks the third straight month of contraction in the manufacturing sector. Adding to the bad news, construction spending in July took an unexpected hit, falling .9 percent, snapping three straight months of gains.
Those reports compounded negative sentiment following slowing manufacturing activity in Europe and China. HSBC Corp reported China's purchasing managers' index for August fell to 47.6 from July's 49.3. It was the tenth month of declines and the lowest reading in more than three years.
Those headlines overshadowed otherwise fantastic news on demand for cars and trucks. All three U.S. carmakers, Chrysler, Ford and General Motors posted double digit sales gains during the month of August.
Market participants took a cautious stance ahead of the European Central Bank meeting on Thursday. Investors are waiting to see if ECB President Mario Draghi announces any new actions, such as a plan to buy sovereign bonds, aimed at quelling the debt crisis that has been weighing heavily on the eurozone's economy. Thursday's meeting will also get special attention after Moody's cut its outlook on the European Union's AAA credit rating from stable to negative.
Industrial and material stocks proved to be among the biggest burdens on the blue chip index. Caterpillar led declines, falling 3% on the day. Alcoa, Du Pont and United Technologies suffering losses as well, all down more than 1%.
The tech-heavy Nasdaq however was rescued from negative territory as investors bid up the shares of Apple. Apple's stock climbed 1.5% after the company announced a product event in San Francisco on September 12th. The event broadly thought to be the unveiling of Apple's much anticipated I-Phone 5.
M&A news also produced strong gains among drug stocks. Medicis Pharmaceuticals' stock jumped 38% after rival Valeant Pharmaceuticals announced its buying the biotech company for $44 a share, an all cash deal worth $2.6 billion. Valeant shares finished the session higher as well, up 14.6% at the closing bell. |
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Posted by Lou Dobbs Staff at 11:00 AM Email to a friend |
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