U.S. Stocks Slip With Manufacturing Stumbling
Today, the market was quite dreary. U.S. stocks fell today as a result of a less than stellar forecast data on manufacturing, industrial production and homebuilding.
What does this mean to us? The economy is moving at a snails pace once again...
Shocking, I know.
Officials in Europe failed to agree on a rescue plan for Greece, which in turn showed losses in European banks, and financial shares in the S&P 500 dove 1.1 percent.
Ford Motor Co. (F) dropped 2.6 percent after announcing that their second-half pretax profit will be lower than first-half.
A 2.6 percent slump also came under J.C. Penney Co. after Morgan Stanley cited earnings risk while the world's largest maker of glass bottles, Owens-Illinois Inc. (OI) fell 7.9 percent after lowering it's profit-margins forecast, ending the day at $27.21.
According to Morgan Stanley, J.C. Penney (the third-biggest U.S. department store chain) dropped to $34.46 and has earnings risk over the next several quarters because of market share loss, excess invetory and the inability to raise prices in a cost inflationary environment.
Benchmark gauges rose over the last two days, rebounding from six weeks of losses, as a pickup in takeovers and better- than-estimated data on American retail sales and Chinese industrial production bolstered confidence. The index was still down 5.6 percent from this year’s high at the end of April through yesterday amid concern about an economic slowdown.
Reports came out earlier today that indicated that manufacturing in the New York region unexpectedly shrank in June, in turn extending stock-futures losses. Much of the industry is still facing difficulties following the earthquake disaster in Japan.
It is still apparent that confidence among U.S. homebuilders is poor and slumped in June to the lowest level in nine months.
Figures from the Federal Reserve indicate that industrial production in the U.S. rose less than forecast in May. The cause of this comes from a slump in utility output and shortage of auto parts from Japan.
More from Bloomburg:
The Federal Reserve Bank of New York’s general economic index dropped to minus 7.8, the lowest level since November, from 11.9 in May. The median forecast in a Bloomberg News survey of economists was 12. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut.
On top of all that, the cost of living in the U.S. rose more than forecast in May yielding higher prices for things like hotel rooms or cars. Analysts say that with these higher prices it shows raw-material expenses are filtering through to other goods and services.
Ford dropped 2.6 percent to $13.08 and led among car companies in the S&P 500 down 1.7 percent which was the biggest decline within 24 industries.+1
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