The latest economic data has gotten investors a little nervous.
First the scoreboard:
Dow: 13,057, -115.3, -0.8%
S&P 500: 1,402, -11.4, -0.8%
NASDAQ: 3,053, -20.2, -0.6%
And now the top stories:
- The latest economic data out of China was not good. The flash purchasing managers index (PMI) fell to 47.8 in August from 49.3 last month. This is the lowest reading in nine months. Any reading below 50 signals contraction in the industry.
- China is the world’s second largest economy and arguably the most important source of growth. So, its deceleration is freaking everyone out. “The flash report is plainly awful,” said Societe Generale’s Wei Yao. Bank of America’s Ting Lu thinks that this bad news leaves the door wide open for more easing from China’s policymakers.
- Economic data out of Europe wasn’t much better. New GDP and PMI data confirmed that Germany was slowing rapidly. This is just more bad news for the already beleaguered eurozone. A traveller In Greece Sent Us These Depressing Pictures, And Explained Why The Economy Is A Wreck >
- U.S. weekly initial jobless claims unexpectedly jumped to 372k from last week’s reading of 368k. Economists were looking for 368k. The Most Distressed Cities In America >
- However, sentiment toward the U.S. economy overall remains positive. The latest Markit Flash PMI number improved to 51.9, which means it’s expanding. This is in sharp contrast with China and the Euro zone. “Once again, the U.S. economy could pull the global economy away from the cliff of economic contraction,” said Morgan Stanley analysts in a note to clients today.
- Don’t Miss: BofA: These Stocks Are Winners If You Expect Romney To Become President >
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