STOCKS GO NOWHERE AFTER WAVE OF BAD NEWS: Here's What You Need To Know

wave, surfing

Photo: Donald Miralle/Getty Images

The first 24-hours of the economic Super Bowl are nearly done.First the scoreboard:

Dow: 12,393, -26.41, -0.21%
S&P 500: 1,310, -2.99, -0.23%
NASDAQ: 2,827, -10.02, -0.35%

And now the top stories:

  • Today marked the start of an avalanche of economic data out of the U.S.. First we had the Challenger Job-Cut report that saw layoffs surging 66 per cent in May to 61,887. A large chunk of the layoffs reflect HP’s job cuts. This was followed by the ADP employment report at 8:15 a.m. with private payrolls rising 133K for May, missing expectations, with April numbers revised down to 113K.  
  • Meanwhile, initial jobless claims jumped to 383K in the May 26 week, up 10,000 from last week which was revised up to 373,000. Initial claims widely missed expectations of 370K new claims. Here’s what 12 top economists are saying about tomorrow’s huge jobs number >
  • U.S. GDP however came just in line with expectations, with the economy growing 1.9 per cent in the first quarter. The economic expansion in the first quarter was revised down by 30 basis points and motor vehicle sales were behind much of the uptick in GDP.
  • Then at 9:45 a.m. another disappointing data point, this time it was Chicago PMI. Growth in the manufacturing industry in the region surrounding Chicago grew at a slower than expected pace, with the business barometer index falling to 52.7, missing expectations of 56.1.
  • Markets did however rally this afternoon on reports that the IMF was considering backstopping Spain, even if the country and EU leaders couldn’t backstop Bankia. But the IMF later downplayed the headlines, and the discussions were reported to be part of “internal contingency plans”. Just the fact that the IMF was discussing a loan to Spain however suggested that it sees a failure to secure funding for Bankia as a significant risk. Don’t Miss: 14 reasons Spain is turning into a disaster >
  • Investor concerns over Europe, low inflation in the U.S., and concern over slowing growth has seen U.S. treasury yields fall. The yield on the 10-year — what people are willing to accept to lend to the US government for 10 years — eased to 1.53760 per cent. Here’s what the collapse in U.S. interest rates really means >
  • Talbots’ stock is up nearly 88 per cent on news that it will be acquired by Sycamore in a deal valued at $369 million. Shareholders will receive $2.75 per share, below an earlier offer of $3.05.
  • Facebook’s stock has been getting pummelled but made a comeback today, closing up 5 per cent. GMI Ratings however gave Facebook a ‘D’ rating for corporate governance.
  • And day 2 of the economic Superbowl kicks off early tomorrow morning with PMI data being released around the world and there’s the massive employment report in the U.S..

Don’t Miss: Morgan Stanley’s Complete Outlook For The 14 Most Important Commodities In The World >

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