Stocks finished in the red, following the path of world markets, after China lowered its annual growth target. Chinese Premier Wen Jiabao lower target for China’s economic growth to 7.5% from 8.0%, underscoring the need to make the country’s breakneck development more sustainable. Also, the ISM nonmanufacturing index rose to 57.3% in February from 56.8% in January, better than expected, however, the ISM employment index, slipped to 55.7% from 57.4% and the ISM price index, which measures inflation, jumped to 68.4% from 63.5% in the prior month. Factory orders in January slumped 1% vs a 1.5% dip expected. Alcoa and Caterpillar, were the biggest laggards in the Dow amid worries that slower growth in China could pressure demand for their products. Tech stocks were dragged down by a sharp selloff in the semiconductor sector after the Semiconductor Industry Association announced that global chip sales fell 2.7% in January compared to the prior month. IBM closed up nearly 1%, crossing the $200 mark for the first time ever. Yelp retreated, falling more than 14% after spiking 64% in their debut on the NYSE. Apple reported that downloads from its App Store passed the 25 billion mark, however shares slid 2.2% ahead of the company’s highly-anticipated iPad announcement Wednesday. Implied volatility inched higher on moderate trading volumes.
Tuesday, March 6, 2012
Slid on U.S. data and China’s lowered growth target
Stocks finished in the red, following the path of world markets, after China lowered its annual growth target. Chinese Premier Wen Jiabao lower target for China’s economic growth to 7.5% from 8.0%, underscoring the need to make the country’s breakneck development more sustainable. Also, the ISM nonmanufacturing index rose to 57.3% in February from 56.8% in January, better than expected, however, the ISM employment index, slipped to 55.7% from 57.4% and the ISM price index, which measures inflation, jumped to 68.4% from 63.5% in the prior month. Factory orders in January slumped 1% vs a 1.5% dip expected. Alcoa and Caterpillar, were the biggest laggards in the Dow amid worries that slower growth in China could pressure demand for their products. Tech stocks were dragged down by a sharp selloff in the semiconductor sector after the Semiconductor Industry Association announced that global chip sales fell 2.7% in January compared to the prior month. IBM closed up nearly 1%, crossing the $200 mark for the first time ever. Yelp retreated, falling more than 14% after spiking 64% in their debut on the NYSE. Apple reported that downloads from its App Store passed the 25 billion mark, however shares slid 2.2% ahead of the company’s highly-anticipated iPad announcement Wednesday. Implied volatility inched higher on moderate trading volumes.
