Stocks waver on China concerns
Construction spending increases in April. Global stocks decline after surveys show that manufacturing in China is slowing.
By Melinda Peer, TheStreet
Updated at 12:13 p.m. ET
Stocks wavered as concerns about slowing growth in China overshadowed an increase in construction spending in the U.S.
At 12:13 a.m. ET, the S&P 500 ($INX) was down by 3.4 points, or 0.3%, at 1,086. The Dow Jones Industrial Average ($INDU) was up 17 points, or 0.2%, at 10,153. The Nasdaq ($COMPX) had fallen 4.6 points at 2,252.
Global stocks dropped today after surveys showed that manufacturing activity in China had slowed in May. Hong Kong's Hang Seng lost 1.4%, and Japan's Nikkei slipped 0.6%. The FTSE in London was down 2.2%, and the DAX in Frankfurt was down by 1.7%.
The Commerce Department said construction spending rose 2.7% to $869 billion in April after increasing 0.2% in March.
The Institute for Supply Management's Purchasing Managers Index fell to 59.7 in May from 60.4 in April. Economists had expected a reading of 58.9.
On the New York Stock Exchange, Icahn Enterprises (IEP), Ambac Financial Group (ABK) and WSP Holdings (WH) were making strong gains, unlike Canadian Natural Resources (CNQ), Anadarko Petroleum (APC) and Warner Music Group (WMG).
Hewlett-Packard (HPQ) said it will invest $1 billion in its enterprise services business. The computer maker plans to cut 3,000 jobs and shift 6,000 to other parts of the company. Its shares were up 0.5%.
Caterpillar (CAT) said it will acquire electric-diesel locomotive manufacturer Electro-Motive Diesel for $820 million from a pair of private-equity investors. The stock was gaining 0.02%.
Shares of Apple (AAPL) were up 2.4% to $263.13 after the company said sales of its new iPad device topped 2 million in less than 60 days since its launch on April 3. On Friday, the iPad hit stores in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the U.K. Barclays (BCS) and UBS (UBS) boosted their price targets.
Security concerns have prompted Google (GOOG) to phase out the internal use of Microsoft's Windows operating system, according to the Financial Times. (Microsoft is the publisher of MSN Money.)
American International Group (AIG) refused to change the terms of the $35.5 billion sale of its Asian unit, AIA, to Prudential (PUK).
Crude oil for July delivery was down $1.31 at $72.66 a barrel. The August gold contract was up $12.80 at $1,225 an ounce.
The dollar was trading higher against a basket of currencies, with the dollar index up by 0.5%.
The benchmark 10-year Treasury rose 15/32, decreasing the yield to 3.250%.
Yes, it is another great day..
Fsg...You really need to stop back at the Weekend blog and read the final comments.
Mirage Guy..Thanks, for pointing out the skullduggery of plagerism taken on quotes attributed to some of our famous,more recent usages.
I use to be kind of a nutball about "famous quotes."
Kind of miffed about the market opening at as much lows.
But then again,what is happening now is redeeming along my thought lines....Who would have thunk?
Appeared to me we were "tombstoning" on the VIX.X charts in the 30-40 range; Soooo, I kind of figured we were due for a bust-out to the upside?
And then we have China throw in a wrench.
Last week I'm pretty sure the Big Boys were quietly buying back in, particularily late in the week.
Having between 16-20 positions in 7-8 sectors; The indices were flat, but we had gain of about 3.6% for the week.
Something is afoot.....And it just may be the bulls are wearing some bear rugs on there shoulders.
OTMOPO3OK - Don't count on it. The collapse is just beginning. For the last 20+ years, Western Nations have not only grossly inflated their standard of living, they have inflated their education and wages - - all via deficit spending and borrowing. Now, we are in a real economic/financial pickle. We are most likely just going to kick the can down the road a bit and let the next generation deal with the mess. This is too bad. But, heck, I lived my life (home, business owner, education, etc) and if young people don't care enough to speak up and get involved and stop the madness, then screw'em!
International Trade is NOT the villain here! Trade with China, Mexico, Japan, et al., benefits us. In fact, it strengthens rather than weakens a nation's economy. Does anyone remember the Giant Sucking Sound we were supposed to hear when NAFTA got approved 20 years ago? Of course not, because it did not happen. The problem is, and always has been, gov spending, waste, subsidizing, corruption, cronyism, etc., and We have hit the Jackpot with this Administration!
I am bracing for things getting worse....
I see Taxes going through the roof, the employment picture worsing (witness today's news that HP is shedding 9,000 workers), government spending out of control, and what seems to be a new socialist order taking hold. Gold and Silver look better....
I will buy the best quality I can, at the lowest possible price.
Sorry, but I will not overpay for inferior products made in the USA...
it makes perfect sense
we buy most of the chinese crap
we can't afford the crap
they sell less
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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