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Stocks get crushed on almost no news.But first, here’s the scoreboard:
S&P 500: -24
And now the top stories:
- A quick Europe update: Finland approved expansion of the EFSF. But a few hurdles remain. Ultimately, the good news out of Europe was that there was no bad news.
- Back to the US, things were pretty quiet during the stock market’s slow bleed. The August durable goods report said orders fell 0.1%. This was marginally better than an expectation for a 0.2% decline. Excluding aircraft, orders jumped 1.1%, crushing the expectation for just 0.4% growth. Nothing mindblowing, but there were no unfavorable surprises.
- Metals sold off, highlighted by a brutal selloff in copper, which is a pretty bad signal. Of the metals, Dr. Copper is more of an economic bellwether than gold and silver. Basically, traders are pricing in economic deterioration.
- But why are people so worried, asks UBS. The firm’s equity strategy team released a note this morning examining 19 earnings announcments that came out since August 1. For the most part, the language was favourable. The median company beat earnings estimates by around 3%.
- This sentiment was reinforced by three more earnings announcements this morning. Family Dollar beat estimates. McCormick beat estimates. And Darden Restaurants came in line with estimates.
- Also, we can’t forget that Amazon finally unveiled its iPad killer: the Kindle Fire. The markets applauded the product by sending Amazon shares up 2.4%
- Nevertheless stocks grinded lower. Unlike Monday and Tuesday, no news agencies scooped a story from an unnamed ‘European official’ that changed the direction of markets in the final hours of trading.
- Don’t Miss: Goldman: We Just Visited China, Here’s What We Saw
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