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Markets sold off across Europe and the U.S. today, as data and earnings continued to show a weak macro picture. First the scoreboard:
Dow: 12,617.92, -103.5, -0.8%
S&P 500: 1,338.32, -12.2, -0.9%
NASDAQ: 2,862.99, -27.1, -0.9%
And now the top stories:
- U.S. manufacturing grew at the slowest pace since the economy emerged from the financial crisis in 2009 this July, new data out of MarkitEconomics showed at the start of the day. The headline manufacturing index declined 80 basis points during the month to 51.8.
- U.S. markets opened lower following better-than-expected earnings results from major companies like DuPont and AT&T. However revenue at both Dow components fell short of forecasts. AT&T said it earned $3.9 billion, or $0.66 per share, during the period, while DuPont posted earnings of $1.48 a share. The world’s biggest companies reveal what’s happening in the global economy >
- Although most equities declined at the open, Under Armour shares shot more than 10 per cent higher. Revenue during the quarter advanced to $369 million, roughly $10 million above Wall Street estimates. Check out the incredible rise of Under Armour >
- However UPS was not as lucky. The company reported worse-than-expected earnings of $1.15 per share and slashed guidance as weakness in Europe and Asia hurt sales. Shares languished over the course of the day, down more than 5 per cent.
- At 10:00, the Federal Housing Finance Agency’s said its home price index climbed 0.8 per cent in May, beating expectations for a 0.4 per cent gain.
- The Richmond Fed offered disappointing data mid-morning, reporting that manufacturing activity in the mid-Atlantic declined at a sharper than anticipated rate. The headline manufacturing index fell to -17 from -3 a month earlier.
- European markets took a beating today, with major Spanish and Italian indices declining 3.5 and 2.7 per cent, respectively. Borrowing costs surged in both countries, with Spain’s 10-year hitting 7.63 per cent. Italy is quietly getting a whole lot worse >
- Troika inspectors arrived in Athens today to check on the new government’s progress on cutting its deficit. The Troika, made up of the European Commission, ECB, and IMF, is expected to payout some €31 billion ($37.5 billion) to Greece in September. Here’s what you need to know about the IMF’s recent cryptic response on Greece >
- Corn trading was halted in afternoon trade after it tested daily limits. Trading in the commodity was halted after falling $0.40 a bushel, touching $7.455 a bushel. Wheat quoting was also temporarily halted by the CBOT, after prices dropped 6.2 per cent to $8.5575 a bushel. 2012’s double-whammy of bad weather could slam Midwest economies for years >
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