Stock enhanced losses as worries over Europe’s debt trumped mixed economic data, closing a turbulent third quarter that counted as the worst for the major indexes since the depths of the financial crisis. Consumer sentiment rose to 59.4 in September, recovering from a nearly three-year low of 55.7 in August.Chicago manufacturing activity index rose 60.4 in September from 56.5 in August. Meanwhile, personal income in August fell a seasonally adjusted 0.1%, the first decline since October 2009, while consumer spending increased a seasonally adjusted 0.2%. Tech stocks headed south led by losses in Micron Technology, which slid on disappointing earnings. Also, Gartner reported that semiconductor capital equipment spending is expected to total $35.2 billion in 2012, down 19.2% from the projected 2011 total of $43.5 billion. Investors are poised for a busy week, with domestic data due on manufacturing, employment and auto sales, and the global spotlight on Europe, particularly ongoing efforts to stave off a Greek debt default. Also, Apple is holding an event where it is widely expected to unveil the iPhone 5 as well as the launch of the latest update to its iOS mobile operating system and its iCloud service. Implied volatility surged above the 40 level on moderate trading volumes.
Monday, October 3, 2011
Turbulent week ahead
Stock enhanced losses as worries over Europe’s debt trumped mixed economic data, closing a turbulent third quarter that counted as the worst for the major indexes since the depths of the financial crisis. Consumer sentiment rose to 59.4 in September, recovering from a nearly three-year low of 55.7 in August.Chicago manufacturing activity index rose 60.4 in September from 56.5 in August. Meanwhile, personal income in August fell a seasonally adjusted 0.1%, the first decline since October 2009, while consumer spending increased a seasonally adjusted 0.2%. Tech stocks headed south led by losses in Micron Technology, which slid on disappointing earnings. Also, Gartner reported that semiconductor capital equipment spending is expected to total $35.2 billion in 2012, down 19.2% from the projected 2011 total of $43.5 billion. Investors are poised for a busy week, with domestic data due on manufacturing, employment and auto sales, and the global spotlight on Europe, particularly ongoing efforts to stave off a Greek debt default. Also, Apple is holding an event where it is widely expected to unveil the iPhone 5 as well as the launch of the latest update to its iOS mobile operating system and its iCloud service. Implied volatility surged above the 40 level on moderate trading volumes.
