Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

While you were sleeping: Manufacturing disappoints

While you were sleeping: Manufacturing disappoints

Feb 4 (BusinessDesk) – Equities declined on both sides of the Atlantic, continuing the trend of January, as data showed that China’s manufacturing fell last month, while US manufacturing activity grew at the slowest pace in eight months, fuelling concern about global growth.

The US Institute for Supply Management’s factory index dropped to 51.3 in January, from 56.5 in December. China’s purchasing managers’ index fell to 50.5 in January, from 51 in December.

American car makers did not provide positive news either. Ford and General Motors both reported bigger-than-expected falls in January car sales blamed on unusually cold winter weather. Shares of Ford dropped 3 percent, while those of General Motors shed 1.7 percent.

“Given the difficult weather in our largest sales regions, we are fortunate to have held in at retail as well as we did,” John Felice, Ford vice president, US marketing, sales and service, said in a statement. “In areas where the weather was good, such as in the West, sales were up. The poor weather also had an impact on the timing of some of our fleet deliveries.”

In afternoon trading in New York, the Dow Jones Industrial Average dropped 1.4 percent, the Standard & Poor’s 500 Index sank 1.5 percent, while the Nasdaq Composite Index shed 1.8 percent.

In 2014 so far, the Dow has slumped 6.5 percent, the S&P 500 has dropped 4.9 percent. The Nasdaq has actually gained, up 3.6 percent.

To be sure, some including Wells Capital Management’s James Paulsen say the recent weakness following the 2013 rally is not a sign that investors are turning bearish.

“It doesn’t mean anything’s necessarily changed,” Paulsen, the Minneapolis-based chief investment strategist at Wells Capital, told Bloomberg News. “It argues that the market’s behaving more rationally. To me, this looks more like a refreshing pause than a correction.”

On Monday, shares of AT&T and Verizon were the biggest decliners in the Dow, dropping 3.3 percent and 3 percent respectively

Shares of Pfizer bucked the Wall Street trend, last up 2.2 percent, amid promising study results for its experimental breast cancer drug.

Janet Yellen was sworn in today as the chairman of the Federal Reserve’s Board of Governors in Washington. She is due to report on monetary policy in semi-annual testimony before the House and Senate on February 11 and 13 respectively.

In Europe, the Stoxx 600 Index ended the day with a 1.3 percent slide from the previous close. The UK’s FTSE 100 gave up 0.7 percent, Germany’s DAX fell 1.3 percent and France’s CAC 40 retreated 1.4 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Rocket Lab: Launch Expected

Rocket Lab has delayed the roll out of the launch vehicle called Electron by one day, due to weather conditions. The planned launch attempt will now take place on Tuesday, May 23, 2017. More>>

ALSO:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: