Stocks pare losses after weak China, eurozone, US data
Reports show contraction in China's manufacturing activity and in the eurozone's private sector. US jobless claims fall by 3,000, but the level remains high. The Philly Fed's manufacturing index improves slightly, while leading indicators slip.
U.S. markets trimmed earlier losses but remained lower after U.S. reports showed jobless claims fell less than forecast, while the Philadelphia Federal Reserve Bank's gauge of regional manufacturing activity remained sluggish. Investors were also concerned about the global economy after weak data from China and eurozone.
The Dow Jones Industrial Average ($INDU) was down 11 points at 13,567. The S&P 500 ($INX) was down 4 points at 1,458. The Nasdaq Composite ($COMPX) was down 12 points at 3,171.
In the U.S., applications for jobless benefits fell by 3,000 to a seasonally adjusted 382,000 in the week ended Sept. 15, the Labor Department said Thursday. Economists expected claims to drop to 375,000, according to Briefing.com. Levels near a two-month high suggested some weakening in the labor market.
The four-week average, which economists see as a better gauge, rose by 2,000 to 377,750, the highest level since late June. It was the fifth week of increases.
Leading economic indicators ticked down 0.1% in August, slightly below economists' forecast of no change. Meanwhile, the longer-term trend remained positive. U.S. economic growth is "unlikely to change much" in the near term, the Conference Board said Thursday.
Manufacturing in China contracts again
China's manufacturing activity contracted in September for the 11th straight month. The preliminary HSBC China Manufacturing Purchasing Managers Index rose to slightly to 47.8 in September from a final reading of 47.6 in August.
While the uptick suggests stabilization, the level is still in the contractionary territory of below 50. The pressure on the manufacturing industry in the world's No. 2 economy likely also indicates it remains on track for a seventh quarter of slowing growth.
Chinese stocks stumbled to their lowest level since February 2009 to lead Asian markets lower after the data. It didn't help that Japan's trade deficit widened in August from a month earlier as both exports and imports fell. Japan's data, however, was above expectations.
Eurozone private sector also contracts
In the eurozone, private-sector activity also contracted. The September index fell to 45.9 from 46.3 in August, below forecasts for 46.7 This was also the fastest pace of contraction since June 2009, despite some positive signals recently out of Germany, the region's largest economy.
European stock markets took a beating after the release of the Chinese and European data.
Stocks to watch
Bank of America (BAC) is accelerating a broad cost-cutting plan and has set a target of shedding 16,000 jobs by year's end, The Wall Street Journal reported. After the cuts, the bank will no longer be the largest employer in the U.S. banking sector.
Rite Aid (RAD) reported a narrower second-quarter loss of $41.4 million, or 5 cents a share, as revenue dipped slightly to $6.23 billion. Wall Street analysts had expected the company to lose 7 cents a share on revenue of $6.2 billion.
Nike's (NKE) board has approved an $8 billion share-buyback plan over the next four years.
Norfolk Southern (NSC) shares fell after the second-biggest eastern U.S. railroad reported that its third-quarter profit missed analysts' estimates as a result of dwindling volumes.
Trulia (TRLA), the real-estate information site, priced its initial public offering at $17 a share, reportedly raising more than $100 million. Shares are set to open for trading on the New York Stock Exchange this morning.
Adobe Systems (ADBE) advanced after the software maker issued a weaker-than-expected fiscal-fourth-quarter profit outlook after Wednesday's close.
Bed Bath & Beyond (BBBY) shares slumped after the retailer late Wednesday reported second-quarter earnings that fell short of forecasts.
CarMax (KMX) said its second-quarter profit increased slightly to $111.6 million, or 48 cents a share, missing analysts' expectations.
HP cutting 29,000
AA cutting 11,000
BAC cutting 16,000
July Manufacturing layoffs 44,900
And more tens of thousands on the way.
Here we go again boys and girls!
let take a little poll here.
thumbs up if you believe there is too much money in politics.
thumbs down if you believe there is just enough or not enough.
This is not a liberal or conservative question. Is is bipartisan
First time unemployment claims at 382,000 for previous week. Only 3,000 less than previous weeks' UPWARD REVISED NUMBERS!
This is the 5th week of INCREASES in first time claims.
Bank of Mexico , I am sorry, I mean America is laying off an additional 16,000 between now and year end. Happy Holidays to BoA employees, with more to come in 2013-2015. I was going to say Merry Christmas, but I might offend someone, although it is OK for them to offend me!
The Attorney General Eric (Liar) Holder knew nothing about Fast And Furious- why is he still the Attorney General if he does not know what is going on. I believe President Obama is making one of the peasants take the fall. If this happened under Bush, I believe the same way, so don't call me racist. We have a Border Patrol agent dead, and it is swept under the carpet. Sounds like Mexico and not America!
Boy am I rambling today, but I am what you called somewhat pissed off with all of this.
Us part timers with no health care are lucky to have what we have, but it still is hard to sleep when you know a hospital visit can ruin you financially.
Everyone have a great day. I love all of you, but politically some of us are different, and that is just the way it is.
I'm thinking both parties should be against illegal imigration and amnesty for them.
Dems - they lower the wages of workers and I don't think Unions are happy about that
Repubs - they skew the free market, how can you have a free market with 2 sets of workers?
Americans - this is one sector the government should be hiring in. Inspectors for illegals in the workplace. Increase the fines and the number of inspections and you will see a bunch of illegals leave on their own as they will be here for nothing. Then the discussion about deportming millions will be about a much smaller number and may actually be possible.
there's no telling what the truth is in china since it's a controlled comunist country
>>>>China's manufacturing activity contracted in September for the 11th straight month.<<<<
Obviously you don't understand that labor participation rate. It only includes only those individuals who are of working age. If your labor force is smaller makes no difference it's still 100% of those who are of working age 16 to 65. And in case you didn't notice more people don't have the money to retire and many retired have to take menial jobs to survive.
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Stocks drift lower and bonds are hit as investors await the Fed. Prepare for higher volatility this week.
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