Stocks are falling dramatically today, after bullish economic
data pushed Treasury yields to two-year highs and reignited fears
of a liquidity crunch within the equity markets. Disappointing
earnings from Wal-Mart (
) and Cisco (
) also had a negative impact amid worries of consumers cutting
discretionary spending. The Dow Industrials has fallen over 200
point, tumbling to a six-week low - its sharpest one-day decline in
nearly two months.
Today's deluge of data was mixed, although it was the unexpected
15,000 drop in initial jobless claims that drew the most attention
and fueled worries the Federal Reserve could begin tapering its
bond-buying program next month.
Inflation data matched expectations with both the nominal and
core-CPI increasing 0.2%. The New York Fed survey of manufacturing
activity in the state declined to a 8.24 reading this month from a
9.46 reading in July and running counter to the consensus looking
for a slightly improvement to 10.0. Industrial production was
unchanged and capacity utilization fell to a 77.6 score, both
coming in below estimates.
However, home-builder sentiment rose another 3 points to a 59
reading, its highest mark in eight years. It also topped estimates
for a small decline to 56. Finally, the Philly Fed survey slipped
to 9.3 from 19.8 the month prior and falling below estimates for a
In Europe, Britain's FTSE index was initially supported by
better than expected retail sales data, but the gains were erased
by heavy pressure on US markets, causing European bourses to trade
lower in sympathy.
Crude oil was up $0.45 to $107.35 per barrel. Natural gas was up
$0.06 to $3.54 per 1 million BTU. Gold was down $7.20 to $1,326.30
an ounce, while silver was up $0.09 to $21.88 an ounce. Copper was
down $0.03 to $3.31 per pound.
, the United States Oil Fund was up 0.58% to $38.31 while the
United States Natural Gas Fund was up 1.47% to $17.95. Amongst
precious-metal funds, the Market Vectors Gold Miners ETF was down
0.47% to 28.58 while SPDR Gold Shares were down 0.41% to $128.44.
The iShares Silver Trust was up 0.31% to $21.16.
Here's where the U.S. markets stand at mid-day:
NYSE Composite Index down 104.13 (-1.09%) to 9,489.37
Dow Jones Industrial Average down 188.15 (-1.23%) to
S&P 500 down 19.86 (-1.18%) to 1,665.53
Nasdaq Composite Index down 48.92 (-1.33%) to 3,620.35
Nikkei 225 Index down 2.12%
Hang Seng Index down 0.01%
Shanghai China Composite Index down 0.87%
FTSE 100 Index down 1.58%
CAC 40 down 0.51%
DAX down 0.73%
NYSE SECTOR INDICES
NYSE Energy Sector Index down 0.28%
NYSE Financial Sector Index down 1.25%
NYSE Healthcare Sector Index down 0.94%
(+) KSS (+4.96%) Retailer's Q2 revenue rises 2% year over year;
earnings in-line with estimates.
(+) EL (+5.02%) The company beat earnings expectations by $0.03
(+) A (+2.73%) Raises its FY earnings guidance
(-) CSCO (-6.77%) Q4 earnings comr in better than expected but
news the company was cutting 5% of workforce unnerves traders.
(-) WMT (-2.16%) World's largest retailer lowers its FY13
outlook; Q2 same-store sales slide 0.3%
(-) MPW (-5.96%) Prices 10 million share offering
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