Dow dropped 88, decliners ahead of advancers 2-1 & NAZ fell 18. The Financial Index lost a fraction to the 202s. The MLP Index slipped 1 to 396 & the REIT index lost 1+ to the 264s. Junk bond funds were a little lower & Treasuries were a tad higher following their recent rally. Oil slid lower but is near the magical $100 price level & gold is pushing towards $1700 (bets on negative results after more bailouts).
Photo: Bloomberg
Economic activity in manufacturing contracted in Aug for the 3rd time since Jul 2009; however, the overall economy grew for the 39th consecutive month according to the Manufacturing ISM Report. The PMI registered 49.6%, a decrease of 0.2% from Jul of 49.8%, indicating contraction in the manufacturing sector for the 3rd consecutive month. This is also the lowest reading for the PMI since Jul 2009. The New Orders Index registered 47.1%, a decrease of 0.9% from Jul, indicating contraction in new orders for the 3rd consecutive month. The Production Index registered 47.2%, a decrease of 4.1% & indicating contraction in production for the first time since May 2009. The Employment Index remained in growth territory at 51.6%, but registered its lowest reading since Nov 2009 when the index registered 51%. The Prices Index increased 14.5% from its Jul reading to 54%. This data reflects a slowdown in orders & demand, with continuing concern over the uncertain state of global economies.” Not a good report.
European leaders are stepping up shuttle diplomacy this week as they brace for their central banker's plan to defend the € from bond-market turmoil. EU President Herman Van Rompuy is traveling to Berlin for talks with Angela Merkel as Italian Prime Minister Monti welcomes French President Hollande. They were all given a hint about what may be in store when ECB President Mario Draghi said yesterday that he would be comfortable buying 3-year gov bonds to bring down borrowing costs for nations in financial distress. The financial leaders have a chance to fall in line behind Draghi. Merkel, whose country shoulders the largest cost of bailing out weaker govs, has indicated she would back a more active crisis-fighting role at the ECB & yesterday said that Germany must show solidarity with Europe. Merkel called a "very ambitious agenda" this month to quell what has been a 3-year sovereign debt crisis. "We have to press for reforms in other countries even if they sometimes say we're hard-line," Merkel said. "It's not enough just to keep muddling through. But I also say that in such a difficult phase these countries deserve our solidarity and that we root for them to overcome their difficulties." After this talk, it's time for action.
Merkel-Monti Diplomacy Intensifies as Draghi Bond Rescue Plan Takes Shape
Photo: Bloomberg
Chrysler's US sales rose 14% in Aug on strong demand for Ram pickup trucks. The Ram, which had its best Aug in 5 years, helped Chrysler sell more than 148K vehicles last month. The results are a sign that car & truck sales will remain strong despite consumers' worries about the economy. Model-year closeouts & appealing new cars were expected to draw customers to showrooms. Predictions are for sales of more than 1.2M vehicles for Aug, up 20% from a year earlier. The annual pace is expected to reach 14.2-14.5M vehicles, making Aug the 2nd-best month of the year.
Chrysler Sales Up 14% to Extend U.S. Streak on Dart Gain
Stocks are beginning what is the weakest month of the year with a decline. The goings on in Europe are at center stage this week following by the Aug jobs report on Fri. Markets are nervous to say the least. Merkel is sort of the leader in Europe & is pushing to get the countries to agree. But nobody is clear on what they are supposed to agree to. She is signalling more bailouts, but the details are blurry because there is a lot of disagreement in the euro union. Euro doubts will plague market for the next couple of days.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month | 0.096% | |
U.S. 2-year | 0.222% | |
U.S. 10-year | 1.569% |
| CLV12.NYM | ...Crude Oil Oct 12 | .............96.61 | ... 0.14 | (0.2%) |
| ZGV12.CBT | ....Gold 100 oz. Oct 12 | ...1,692.60 | ... 7.50 | (0.5%) |
Get the latest daily market update below:
Economic activity in manufacturing contracted in Aug for the 3rd time since Jul 2009; however, the overall economy grew for the 39th consecutive month according to the Manufacturing ISM Report. The PMI registered 49.6%, a decrease of 0.2% from Jul of 49.8%, indicating contraction in the manufacturing sector for the 3rd consecutive month. This is also the lowest reading for the PMI since Jul 2009. The New Orders Index registered 47.1%, a decrease of 0.9% from Jul, indicating contraction in new orders for the 3rd consecutive month. The Production Index registered 47.2%, a decrease of 4.1% & indicating contraction in production for the first time since May 2009. The Employment Index remained in growth territory at 51.6%, but registered its lowest reading since Nov 2009 when the index registered 51%. The Prices Index increased 14.5% from its Jul reading to 54%. This data reflects a slowdown in orders & demand, with continuing concern over the uncertain state of global economies.” Not a good report.
I
Photo: BloombergEuropean leaders are stepping up shuttle diplomacy this week as they brace for their central banker's plan to defend the € from bond-market turmoil. EU President Herman Van Rompuy is traveling to Berlin for talks with Angela Merkel as Italian Prime Minister Monti welcomes French President Hollande. They were all given a hint about what may be in store when ECB President Mario Draghi said yesterday that he would be comfortable buying 3-year gov bonds to bring down borrowing costs for nations in financial distress. The financial leaders have a chance to fall in line behind Draghi. Merkel, whose country shoulders the largest cost of bailing out weaker govs, has indicated she would back a more active crisis-fighting role at the ECB & yesterday said that Germany must show solidarity with Europe. Merkel called a "very ambitious agenda" this month to quell what has been a 3-year sovereign debt crisis. "We have to press for reforms in other countries even if they sometimes say we're hard-line," Merkel said. "It's not enough just to keep muddling through. But I also say that in such a difficult phase these countries deserve our solidarity and that we root for them to overcome their difficulties." After this talk, it's time for action.
Merkel-Monti Diplomacy Intensifies as Draghi Bond Rescue Plan Takes Shape
Chrysler's US sales rose 14% in Aug on strong demand for Ram pickup trucks. The Ram, which had its best Aug in 5 years, helped Chrysler sell more than 148K vehicles last month. The results are a sign that car & truck sales will remain strong despite consumers' worries about the economy. Model-year closeouts & appealing new cars were expected to draw customers to showrooms. Predictions are for sales of more than 1.2M vehicles for Aug, up 20% from a year earlier. The annual pace is expected to reach 14.2-14.5M vehicles, making Aug the 2nd-best month of the year.
Chrysler Sales Up 14% to Extend U.S. Streak on Dart Gain
Stocks are beginning what is the weakest month of the year with a decline. The goings on in Europe are at center stage this week following by the Aug jobs report on Fri. Markets are nervous to say the least. Merkel is sort of the leader in Europe & is pushing to get the countries to agree. But nobody is clear on what they are supposed to agree to. She is signalling more bailouts, but the details are blurry because there is a lot of disagreement in the euro union. Euro doubts will plague market for the next couple of days.
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