Dow plunged 479, decliners over advancers about 5-1 & NAZ sank 129. The MLP index fell 1+ to the 229s & the REIT index gave back 2+, falling to the 402s. Junk bond funds dropped along with stocks & Treasuries rose in price. Oil declined in the 53s & gold gained 12 to 1501 while stocks were sold (more below).
AMJ (Alerian MLP Index tracking fund)
Stocks opened lower after the US economy got some more disappointing news. Private-sector employers added 135K jobs in August, according to the latest ADP National Employment Report, missing the 140K that was expected. Yesterday, the ISM Sep Manufacturing Index fell to 47.8, its weakest reading since 2009. All 3 major indices were lower. European markets were sharply lower. London's FTSE fell 2%, Germany's DAX is down 1.3% & France's CAC is down 1.6%. In Asia, Japan's Nikkei closed down 0.5% & Hong Kong's Hang Seng slid 0.3%. Markets in mainland China were closed for National Day holidays. They reopen on Oct. 8.
Private employers in the US added 135K jobs in Sep, according to the latest ADP National Employment Report, slightly missing expectations of 140K amid signs the labor market is beginning to cool. "Job growth is definitively slowing," said Mark Zandi, chief economist of Moody's Analytics. Most hiring took place in the service-providing sector, with 127K new jobs created. Manufacturing hiring, however, slipped, with a mere 2K jobs added. "Businesses have turned more cautious in their hiring," Zandi said. "Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise." Over the past 3 months, average private-sector hiring has been 145K, down from 214K in the year-ago period. Although that number is currently consistent enough to maintain stable employment, Zandi warned that if job growth continues to slow, unemployment will likely rise. When unemployment rises, even slightly, it tends to trigger a change in the business cycle from expansion to recession, Zandi added. "We are at a very critical juncture," he said. Plus, the decline in job growth comes on the heels of the lowest US manufacturing reading in more than 10 years. The Institute for Supply Management's purchasing managers' index fell to 47.8% in Sep, the lowest level since the financial crisis. Any figure below 50% signals a contraction.
Private sector adds 135,000 jobs in September, but fears remain
Gold prices climbed modestly higher after private-sector employment showed that the pace of hiring in the US is slowing, reviving worries about a recession in the US economy & spurring the purchase of assets perceived as havens. Gold for Dec gained $9.40 (0.6%) to reach $1498 an ounce, after advancing 1.1% yesterday. The advance puts the yellow metal closer to a psychologically significant level at $1500. Automatic Data Processing's private-sector employment showed that businesses added a modest 135K private-sector jobs in Sep. The forecast called for a gain of 152K. The payroll processor also reduced its estimate of new jobs created in Aug to 157K from an original 195K. The lackluster report comes after the Institute for Supply Management's survey on manufacturing registered at 47.8, down from 49.1 in Jul, below the 50.2 estimated (the worst reading since 2009). Any reading below 50 indicates contraction. Also published today, the JPMorgan IHS global manufacturing index for Sep remained below 50, the dividing line between expansion & contraction, for a 5th straight month.
Gold prices clamber back toward $1,500 after U.S. private-sector employment data
US vehicle sales for Ford (F) declined 4.9% during Q3 from a year ago as demand for the company's best-selling F-Series pickup started to wane, the automaker said. An 8.8% increase in the Dearborn automaker's truck & van sales the past 3 months wasn't enough to offset a 10.5% decrease in SUV sales & a 29.5% drop in cars. Ford sold 580K vehicles in Q3 compared to 610K a year ago. The Ford brand was down 5.6%, while the company's Lincoln luxury brand increased sales 11.7%. Sales of Ford’s highly-profitable F-Series pickup line tumbled 6% in the qtr, dragging the truck's sales during the first 9 months of the year down 2.4% as the company competes against newer models from crosstown rivals Fiat Chrysler (FCAU) & General Motors (GM). “Our truck, van and commercial business continued to be strong in the third quarter, with record van sales and continued F-Series sales leadership,” Mark LaNeve, Ford's VP of US marketing, sales & service, said. LaNeve called this year a “transitional one” for the company as Ford moves its lineup away from passenger cars to new or redesigned trucks, crossovers & SUVs. Ford sold 1.8M vehicles during the first 9 months of the year, a 3.5% decline from the same time last year. The stock was off 33¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
Ford’s third-quarter auto sales fall 4.9% as demand for its popular F-Series pickups weakens
The bulls are in hiding today as the early indicators for Oct are not good. The Dow is down more than 800 so far & day #2 has not reached the ½ way mark. Sep is statistically the toughest month for stocks but Oct is remembered for some of the ugliest days. The US economy has been the strongest major one this year, but sluggish global data is hurting it. Consumer spending & low unemployment rates have been been responsible for the relatively good data in the US. That strength may not last going forward. Additional data for Sep along with the first estimate for GDP data at the end of the month will be telling.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 53.32 | -0.30 | -0.6% |
| GC=F | Gold | 1,501.70 | +12.70 | +0.9% |
Stocks opened lower after the US economy got some more disappointing news. Private-sector employers added 135K jobs in August, according to the latest ADP National Employment Report, missing the 140K that was expected. Yesterday, the ISM Sep Manufacturing Index fell to 47.8, its weakest reading since 2009. All 3 major indices were lower. European markets were sharply lower. London's FTSE fell 2%, Germany's DAX is down 1.3% & France's CAC is down 1.6%. In Asia, Japan's Nikkei closed down 0.5% & Hong Kong's Hang Seng slid 0.3%. Markets in mainland China were closed for National Day holidays. They reopen on Oct. 8.
Stocks slide as US economic data disappoints
Private employers in the US added 135K jobs in Sep, according to the latest ADP National Employment Report, slightly missing expectations of 140K amid signs the labor market is beginning to cool. "Job growth is definitively slowing," said Mark Zandi, chief economist of Moody's Analytics. Most hiring took place in the service-providing sector, with 127K new jobs created. Manufacturing hiring, however, slipped, with a mere 2K jobs added. "Businesses have turned more cautious in their hiring," Zandi said. "Small businesses have become especially hesitant. If businesses pull back any further, unemployment will begin to rise." Over the past 3 months, average private-sector hiring has been 145K, down from 214K in the year-ago period. Although that number is currently consistent enough to maintain stable employment, Zandi warned that if job growth continues to slow, unemployment will likely rise. When unemployment rises, even slightly, it tends to trigger a change in the business cycle from expansion to recession, Zandi added. "We are at a very critical juncture," he said. Plus, the decline in job growth comes on the heels of the lowest US manufacturing reading in more than 10 years. The Institute for Supply Management's purchasing managers' index fell to 47.8% in Sep, the lowest level since the financial crisis. Any figure below 50% signals a contraction.
Private sector adds 135,000 jobs in September, but fears remain
Gold prices climbed modestly higher after private-sector employment showed that the pace of hiring in the US is slowing, reviving worries about a recession in the US economy & spurring the purchase of assets perceived as havens. Gold for Dec gained $9.40 (0.6%) to reach $1498 an ounce, after advancing 1.1% yesterday. The advance puts the yellow metal closer to a psychologically significant level at $1500. Automatic Data Processing's private-sector employment showed that businesses added a modest 135K private-sector jobs in Sep. The forecast called for a gain of 152K. The payroll processor also reduced its estimate of new jobs created in Aug to 157K from an original 195K. The lackluster report comes after the Institute for Supply Management's survey on manufacturing registered at 47.8, down from 49.1 in Jul, below the 50.2 estimated (the worst reading since 2009). Any reading below 50 indicates contraction. Also published today, the JPMorgan IHS global manufacturing index for Sep remained below 50, the dividing line between expansion & contraction, for a 5th straight month.
Gold prices clamber back toward $1,500 after U.S. private-sector employment data
US vehicle sales for Ford (F) declined 4.9% during Q3 from a year ago as demand for the company's best-selling F-Series pickup started to wane, the automaker said. An 8.8% increase in the Dearborn automaker's truck & van sales the past 3 months wasn't enough to offset a 10.5% decrease in SUV sales & a 29.5% drop in cars. Ford sold 580K vehicles in Q3 compared to 610K a year ago. The Ford brand was down 5.6%, while the company's Lincoln luxury brand increased sales 11.7%. Sales of Ford’s highly-profitable F-Series pickup line tumbled 6% in the qtr, dragging the truck's sales during the first 9 months of the year down 2.4% as the company competes against newer models from crosstown rivals Fiat Chrysler (FCAU) & General Motors (GM). “Our truck, van and commercial business continued to be strong in the third quarter, with record van sales and continued F-Series sales leadership,” Mark LaNeve, Ford's VP of US marketing, sales & service, said. LaNeve called this year a “transitional one” for the company as Ford moves its lineup away from passenger cars to new or redesigned trucks, crossovers & SUVs. Ford sold 1.8M vehicles during the first 9 months of the year, a 3.5% decline from the same time last year. The stock was off 33¢.
If you would like to learn more about Ford, click on this link:
club.ino.com/trend/analysis/stock/F?a_aid=CD3289&a_bid=6ae5b6f7
Ford’s third-quarter auto sales fall 4.9% as demand for its popular F-Series pickups weakens
The bulls are in hiding today as the early indicators for Oct are not good. The Dow is down more than 800 so far & day #2 has not reached the ½ way mark. Sep is statistically the toughest month for stocks but Oct is remembered for some of the ugliest days. The US economy has been the strongest major one this year, but sluggish global data is hurting it. Consumer spending & low unemployment rates have been been responsible for the relatively good data in the US. That strength may not last going forward. Additional data for Sep along with the first estimate for GDP data at the end of the month will be telling.
Dow Jones Industrials
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