Stocks slip as stimulus jolt begins to fade
New York manufacturing also slows. EU finance ministers are in a deadlock over the debt crisis. Citigroup cuts its China forecast. Apple shares near $700 as iPhone 5 sales sizzle.
By Andrea Tse
Stocks traded lower Monday as the sugar high from the Federal Reserve's QE3 announcement last week wore off and global uncertainties crept back into the headlines.
A meeting of European Union finance ministers in Cyprus over the weekend resulted in a deadlock over how the region plans to combat the debt crisis, with leaders unable to work past their differences on a banking union, the role of the European Central Bank and the conditions of bailout requests.
In the U.S., the New York Federal Reserve said the Empire State manufacturing index dropped to minus 10.4 in September, compared with minus 5.9 in August and a consensus of minus 3, showing a quickening of contraction in the state's manufacturing sector.
Also weighing on sentiment was Citigroup's joining other banks in slashing full-year growth forecasts for China.
The major U.S. equity averages finished with solid gains Friday, capping a stellar week triggered by a bold stimulus plan outlined by the Fed. The Dow finished the week up 2.15%, booking a gain for the eighth time in the past 10 weeks and sixth time in the past seven sessions. Year to date, the Dow is now up 11.26%.
In corporate news, demand for the new Apple (AAPL) iPhone 5 has exceeded initial supply, making it the fastest-selling model ever and pushing the delivery date for some preorders to next month, Reuters reported. Apple said preorders topped 2 million in the first 24 hours. Preorders "have shattered the previous record held by iPhone 4S, and the customer response to iPhone 5 has been phenomenal," Philip Schiller, Apple's senior vice president of worldwide marketing, told Reuters.
Activist investment fund Starboard Value LP is expected to disclose that it has taken a 13.3% stake in Office Depot (ODP), The Wall Street Journal reported, citing people familiar with the matter. The stake would make Starboard the largest shareholder in Office Depot.
General Electric (GE) has hired Morgan Stanley to review its 33% stake in Thailand's Bank of Ayudhya, which could lead to a sale of GE's roughly $2.2 billion holding, Reuters reported.
The Treasury Department is resisting a push by General Motors (GM) to sell the government's entire stake in the automaker, the Journal reported. Regulators are investigating whether several major U.S. banks failed to monitor transactions properly, allowing criminals to launder money, according to The New York Times. The Office of the Comptroller of the Currency, the federal agency that oversees the biggest banks, is leading the money-laundering investigation, according to the newspaper. The report said that the OCC could soon take action against JPMorgan Chase (JPM) and that it is investigating Bank of America (BAC).
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MSN News Flash ! Bank of America never ending QE III winner= 80 billion given to the Banking Cartel by the Fed=they Win we LOSE !
Dismantle the Federal Reserve it is a criminal operation ! We need a new Stock Market with a new set of Rules !!
Bernanke is mentally ill and should be immediately processed for a psycologocal evaluation. I mean he's seriously nuts, not some minor depression that might be eased by paxil or zolof.
He has delusions that his money printing will work, even though it's not working and has never worked in the past. He deludes himself when he believes his policies won't cause more harm than good. He deluded himself when he said around 2005 that the subprime loan troubles would not spill over into the wider economy. Have you ever, ever seen this guy admit he was wrong, or even that he could be wrong? And he's always wrong!
So you dopes out there bought into the benny and barry show, but alas it only lasted a day or two. Because over the weekend what did you do, listen to me, read some real news on the web, what? How can anyone tell me that printing more money is the answer to our economic woes? We have been doing that for the last 50 years. And that is why the gas I bought in 1964 at .25 cents is now $4.00 when using barry faced federal reserve notes. But wait if I still had a quarter from back then, I would have been able to purchase a gallon of gas, and guess what the sliver value in barry bucks today is over $4.00 dollar. Wow must just be some strange happening right, no print more dollars and we will end up like Germany between the war, or Zimbabwe today that has a Trillion dollar bill. Now I wonders whose face will be on our Trillion dollar bill, grinning like a jackass eating briers?
Europe is now down the tubes there will be no miracle savign of that economy.
The US while our economy has already failed and Bernanke just keeps printing money to keep the super rich people rich which is not helping the Death Spiral of lost jobs and an ever weaker and weaker economy we are in.
The housing boom they are talking about is 90 percent investment buyers who have cashed out of stocks and bonds and trying to push up the hosuing market to double their money. It's doomed to fail as the asset bubble Bernanke has created is about ready to bust and make poor people of us all.
Pretty much Japan is dead and as their trade with China comes to a complete stop there will be no saving Japan's economy either.
Have a great day but what ever you do SELL SELL SELL as we have reached the high point in the stock market and bond market for this business cycle and it's all down hill from here.
Fat **** Cat
You really are ignorant. If the USA cut it's defence spending by 10% is would still out spend the next 5 militarys combined. No one is challenging the USA military directly. Suicide bombing, embassy attacks are not something a "bigger army" can stop. Even in Afghanistan the Talibans main tactic is to dig holes and put bombs in them at 3:00am and threaten the locals to not say anything.
As far as lowing rates - they have been at historic lows for years..... years I say. So another 0.2 percent lower is suddenly the answer we have all been waiting for. IF YOU HAVE NO JOB YOU CAN'T GET A LOAN REGARDLESS OF THE RATE.
Wall St got another welfare check 3 days ago and and they are already crying for more. I feel so sorry for these rich inbreed ba$tards ! Time to shut 'em down and divy up the cash for the rest of American people.
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[BRIEFING.COM] The major averages began the session near their flat lines and they continue to trade in that fashion 15 minutes into the trading day.
Looking at the market composition, only three groups-consumer discretionary (+0.1%), consumer staples (+0.2%), and technology (+0.3%)-display early gains while the remaining seven sectors hold losses between 0.2% and 0.6%. The energy space is the weakest performer (-0.7%) as crude oil trades lower by 0.5% at $98.02 per barrel. ... More
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