Stocks struggle ahead of Fed meeting
Weak China data drags on global stocks even as it increases hopes for more stimulus. An eventful week in Europe could provide more hurdles for the eurozone. The government will sell $18B in AIG shares.
Updated at 12:02 p.m. ETStocks maintained a narrow range Monday ahead of the Federal Reserve's meeting this week and as China reported data that heightened concerns of a slowdown in growth in the world's second-largest economy.
The Dow Jones Industrial Average ($INDU) was up 8 points at 13,315. The S&P 500 ($INX) was down 1 point at 1,437. The Nasdaq Composite ($COMPX) was down 10 points at 3,126.
Last week, stocks posted multiyear highs as investors bet the Federal Reserve will approve more easing measures this week to stimulate the economy, and as the European Central Bank announced details of its bond-buying plan to help curb borrowing costs of struggling eurozone countries. And a lackluster employment report Friday -- which showed only 96,000 jobs were gained in August, compared with the expected 130,000 -- added to expectation the Fed will act.
- MORE MARKETS | Commodities | Treasurys | Currencies | World stocks
This trend of bad data actually boosting stocks because they raise expectations for further stimulus repeated itself Monday in Asia. Most markets finished higher despite weak Chinese data that had analysts expecting the Chinese economy to have its weakest year of expansion since 1999.
Imports in China fell 2.6% on the year in August, well below expectations for a 3.5% rise. Exports grew 2.7%, again below forecasts for a 3% rise in a Reuters poll. Exports in China generate 25% of GDP, causing some economists to fear China may miss its official 7.5%.
Also, data on Sunday showed China industrial output growth hit its weakest annual pace in August in more than three years. The data, however, solidifies expectations that the government will initiate more stimulus measures.
Concern over Europe far from over
In Europe, stock markets moved lower as investors remained cautious ahead of a German constitutional court ruling and the Fed's policy meeting Wednesday and Thursday.
While the IMF backed the ECB's plan to buy unlimited government debt to ease pressure on struggling eurozone economies, the German court is set to rule Wednesday on a challenge to Germany's participation in the European Stability Mechanism, the eurozone's permanent rescue fund.
The same day, there will be general elections in the Netherlands. And European finance ministers will meet in Cyprus on Friday to try to solve differences over banking supervision and possible extra aid for Spain and Greece.
Stocks to watch
American International Group (AIG) fell after the U.S. Treasury Department said it will sell most of its stake in the insurer, or $18 billion in stock. This transaction will likely make the government a minority investor, according to Bloomberg -- from the current 53% stake to as low as 23% -- for the first time since it rescued the company four years ago with a $180 billion bailout.
Michael Kors (KORS) dipped after the high-fashion retailer said after the close Friday that some of its investors will sell 20 million shares in a so-called secondary sale.
Plains Exploration & Production (PXP) will buy BP's (BP)stake in some of its Gulf of Mexico oil fields for roughly $5.55 billion, Reuters reported.
Apple (AAPL) is expected to unveil information about the iPhone 5 later this week.
Intel (INTC) shares dipped again Monday. The chipmaker cut its revenue outlook Friday, but the Wall Street Journal's Heard On The Street reported it may have to cut its revenue further as sales from developing nations may be declining at a faster rate than the company and analysts are expecting.
Sprint Nextel (S) shares jumped Monday after Nomura Securities upgraded the stock to a "buy" rating and boosted the price target on the wireless operator to $7 from $2.50.
Tyco International (TYC), the maker of fire-detection systems whose former executives were convicted of fraud, fell in Europe as JPMorgan Chase advised reducing holdings in the company, Bloomberg reported.
China, will do what China has to do....Beholden to no one.
Europe has so much infighting, roadblocks and jealously....That it is pathetic.
And half of America,(maybe less) approves of what Bernanke does; The others ??
So the FED is accused of being a Political football.
Americans should concentrate more on pulling her up by the boot straps, and kicking the azz of a do nothing Congress.
It's the same thing as before Draghi's rally. Manipulators will push the markets down for a few days. (or at least try to), in anticipation of Ben's Rally.
After that, we'll get a "lowered 3Q earnings forecast" slump, followed by an "3Q earnings surprise" rally. Then in October, we'll get "the fiscal cliff is coming!" slump, follow by a "Congress reaches agreement" rally. At the end of it all, S&P will be pretty much same is it is today.
there's a stahl going on. we were at the los angeles county fair friday night and it was unusually empty for a summer fair in a pretty populated area.
$5 admission and of course they raised parking from $9 last year to $12 this year.
LOTS of typical smaller vendors were gone. only the corporate big boys seemed to have booths there.
OHHH TWAT ,Did this somehow escape you ?
Tell us again which part of below economic indicators is "floating" again?
5 numbers for Commies to Dwell on and for the normal , working people to take note of:
Now that the Democratic National Convention is over , let's evaluate it by the numbers. I believe the conference can be summed up in five numbers:
(1) 16,000,000,000,000 - Just as the DNC was scheduled to kick off on Tuesday, the national debt clock clicked over to the staggering and dangerous sum of . More than $5 Trillion of that total has , and a top administration official that the White House has no plan to restore the national debt to a position of sustainability.
(2) 46,700,000 - The Department of Agriculture released a report on Wednesday stating that the number of Americans dependent on government food stamps climbed to a record-breaking this summer.
(3) Three - US manufacturing shrank at the fastest clip in , according a study released on Tuesday. President Obama touted manufacturing jobs and growth in his acceptance speech on Thursday. Three is also the number of times thousands of DNC delegates to the re-inclusion of God and Jerusalem during contentious and embarrassing party platform voice votes:
(4) Zero - The number of times the president mentioned the ("Obamacare") or the ("the stimulus") in his on Thursday night. These are his signature legislative accomplishments, yet he decided they didn't merit any attention.
(5) 368,000 - The number of discouraged workers who gave up on seeking jobs and simply e in August. This figure is nearly four times the number of jobs created over the same period.
The Democratic National Convention opened with $16 Trillion in debt and closed with a dismal jobs report. Everything in between those harrowing bookends was just noise.
5 numbers for Commies to Dwell on and for the normal , working people to take note of:
Now that the Democratic National Convention is over , let's evaluate it by the numbers. I believe the conference can be summed up in five numbers:
(1) 16,000,000,000,000 - Just as the DNC was scheduled to kick off on Tuesday, the national debt clock clicked over to the staggering and dangerous sum of . More than $5 Trillion of that total has , and a top administration official that the White House has no plan to restore the national debt to a position of sustainability.
(2) 46,700,000 - The Department of Agriculture released a report on Wednesday stating that the number of Americans dependent on government food stamps climbed to a record-breaking this summer.
(3) Three - US manufacturing shrank at the fastest clip in , according a study released on Tuesday. President Obama touted manufacturing jobs and growth in his acceptance speech on Thursday. Three is also the number of times thousands of DNC delegates to the re-inclusion of God and Jerusalem during contentious and embarrassing party platform voice votes:
(4) Zero - The number of times the president mentioned the ("Obamacare") or the ("the stimulus") in his on Thursday night. These are his signature legislative accomplishments, yet he decided they didn't merit any attention.
(5) 368,000 - The number of discouraged workers who gave up on seeking jobs and simply e in August. This figure is nearly four times the number of jobs created over the same period.
The Democratic National Convention opened with $16 Trillion in debt and closed with a dismal jobs report. Everything in between those harrowing bookends was just noise.
No comment about GM and its best selling car the Chevrolet Volt. A news article states GM is losing $49,000 per vehicle. Sales were up in August as below market leases of as little as $199 per month boosted sales. A dealer in Toms River, NJ stated they sale about 100 vehicles a month, but the dealership has sold only one VOLT in the last year!
And -for the second time this year the production plant will be closed so the glut of inventory can be reduced.
GM is not NO. 1 -TOYOTA is again and VW is second. Only reason GM was No. 1 in 2011 was due to the Tsunami in Japan in 2011.
One thing hurting the VOLT is the amount of time to recharge the vehicle. The article stated you can retrofit your home with a booster type charger for $2,000. What a deal.
There is still a $7,500 tax credit for purchase of this vehicle. The article also stated Nissan, Toyota and others are struggling to sale electric cars.
GM was not bailed out . The Auto Union was bailed out, but not the Adelpi (non union workers), they received the SHAFT.
By the way - why is gas down only $0.05 a gallon now that the hurricane is a thing of the past and the oil rigs are now going full blast. The price increased at least $0.25 a gallon prior to the hurricane.
President Obama wants $8.00 a gallon gas!
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
STOCK SCOUTER
StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.
128 | 268 | 471 | 585 | 654 | 595 | 674 | 422 | 262 | 140 |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
LATEST POSTS
The market's cheap money addiction is laid bare. No one knows how it will end.
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.