News Column

Coutts-US MIDDAY: NEGATIVE ECONOMIC SURPRISES DRAG STOCKS LOWER

January 24, 2014

ENP Newswire - 24 January 2014 Release date- 23012014 - US markets fell notably on Thursday as investors reacted to a barrage of modestly weaker-than-expected economic data, including figures which showed that growth in the American manufacturing sector unexpectedly eased this month. Markit's preliminary US manufacturing purchasing managers' index (PMI) fell to a three-month low of 53.7 in January, down from an 11-month high of 55 in December. While the PMI still remains in expansion territory - above the key 50-point level - analysts had expected it to hold steady, sending Wall Street's main indices around 1% lower in morning trade. Nevertheless, Analyst Cooper Howes from Barclays Research said: 'While the short history of the Markit PMI limits its usefulness for forecasting the manufacturing ISM on a month-to-month basis, the headline reading is still solidly in positive territory and is in line with our view that manufacturing activity growth will pick up in 2014.' In other economic data: existing-home sales rose by a lower-than-expected 1% in December, rebounding after a 5.9% decline the month before; although jobless claims beat forecasts, rising just 1,000 to 326,000 last week but below the 330,000 expected by the market. Furthermore, the Chicago Fed's National Activity Index and house-price figures gave off poor signals. The mixed data added to more uncertainty surrounding monetary policy ahead of the Federal Open Market Committee's meeting next week, with markets waiting to see whether policymakers will continue to scale back their asset purchase programme. PMIs from overseas were also being closely watched by markets today with the manufacturing sector in China unexpectedly contracting and business activity picking up in the Eurozone. Commodity producers drop on Chinese data Commodity producers, such as Alcoa and Cliffs Natural Resources , declined following a fall in prices for industrial metals after manufacturing data from China dropped below economists' forecasts. Lockheed Martin Corp. slumped as the government's biggest contractor posted a 14% dip in fourth-quarter profit, reflecting cuts to federal government spending. eBay gained as activist investor Carl Icahn proposed spinning-off the company's PayPal unit. The suggestion came as the online marketplace reported a rise in fourth-quarter earnings that beat expectations. Netflix also surged as the subscription movie and TV series provider forecast customer growth ahead of analysts' estimates. Front month West Texas crude futures are now rising by 0.93% to the $97.62 /barrel mark on NYMEX . 10-year US treasury yields were off by 2.78%. S&P 500 - Risers Netflix Inc. (NFLX) $383.06 +14.78% F5 Networks Inc. (FFIV) $103.89 +6.58% Newmont Mining Corp. (NEM) $25.22 +3.40% Vulcan Materials Co. (VMC) $61.58 +3.32% Union Pacific Corp. (UNP) $173.63 +3.04% Allegheny Technologies Inc. (ATI) $32.75 +2.31% McKesson Corp. (MCK) $172.20 +1.49% Gen Dynamics Corp. (GD) $101.06 +1.41% Southwestern Energy Co. (SWN) $42.62 +1.37% Varian Medical Systems Inc. (VAR) $83.59 +1.33% S&P 500 - Fallers Noble Corporation plc (NE) $33.00 -8.97% Janus Capital Group Inc. (JNS) $11.98 -7.74% Diamond Offshore Drilling Inc. (DO) $52.13 -4.79% SLM Corp. (SLM) $23.26 -4.75% Keycorp (KEY) $13.51 -4.46% Ensco Plc . (ESV) $52.61 -4.36% Pitney Bowes Inc. (PBI) $22.30 -4.02% Johnson Controls Inc. (JCI) $49.49 -4.01% Rowan Companies plc (RDC) $32.34 -3.92% LyondellBasell Industries (LYB) $77.21 -3.75% Dow Jones I.A - Risers AT&T Inc. (T) $33.67 +0.97% Verizon Communications Inc. (VZ) $47.67 +0.71% McDonald's Corp. (MCD) $95.27 +0.41% Unitedhealth Group Inc. (UNH) $73.45 +0.07% International Business Machines Corp. (IBM) $182.35 +0.05% Dow Jones I.A - Fallers American Express Co. (AXP) $89.10 -2.23% JP Morgan Chase & Co. (JPM) $56.31 -2.22% E.I. du Pont de Nemours and Co. (DD) $61.71 -2.07% Visa Inc. (V) $228.55 -1.91% Travelers Company Inc. (TRV) $83.08 -1.75% Goldman Sachs Group Inc. (GS) $170.78 -1.67% Johnson & Johnson (JNJ) $92.83 -1.58% 3M Co. (MMM) $134.40 -1.52% Exxon Mobil Corp. (XOM) $96.39 -1.52% Boeing Co. (BA) $142.23 -1.48% Nasdaq 100 - Risers Netflix Inc. (NFLX) $383.06 +14.78% F5 Networks Inc. (FFIV) $103.89 +6.58% Equinix Inc. (EQIX) $181.51 +1.42% Bed Bath & Beyond Inc. (BBBY) $65.72 +0.91% Tesla Motors Inc (TSLA) $179.88 +0.74% Akamai Technologies Inc. (AKAM) $49.52 +0.69% NetApp Inc. (NTAP) $45.69 +0.53% Intuitive Surgical Inc. (ISRG) $440.59 +0.33% Mondelez International Inc. (MDLZ) $34.55 +0.29% Sba Communications Corp. (SBAC) $91.57 +0.11% Nasdaq 100 - Fallers Baidu Inc. (BIDU) $165.21 -5.29% Citrix Systems Inc. (CTXS) $59.49 -2.79% CH Robinson Worldwide Inc (CHRW) $58.76 -2.44% Dish Network Corp. (DISH) $55.30 -2.35% Facebook Inc. (FB) $56.23 -2.23% CA Inc. (CA) $33.57 -2.13% Regeneron Pharmaceuticals Inc. (REGN) $289.51 -1.99% Mattel Inc. (MAT) $42.85 -1.97% Tractor Supply Company (TSCO) $71.74 -1.94% Alexion Pharmaceuticals Inc. (ALXN) $138.07 -1.90%


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Source: ENP Newswire


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