Stocks took their second hardest knock so far this year as economic reports illustrating a slowdown in euro-area manufacturing and Chinese output increased investor anxiety, with oil falling below $80 a barrel gold prices below $1,600 an ounce. Jobless claims fell by 2,000 last week, to 387,000, illustrating a lackluster U.S. labor market. Also, Philly Fed factory gauge plunged in June to the negative 16.6 from negative 5.8 in May, lowest level in more than 10 months in June. Meanwhile, the Conference Board’s index of leading economic indicators rose 0.3% in May. Tech stocks sank with the broader market, with Micron Technology and Red Hat among the notable decliners. Micron fell almost 8% after the co. reported a loss, taking a hit from weak pricing for memory chips. Red Hat gave up $ more than 6% after the software maker reported a weaker-than-expected outlook. Facebook was one of the few tech stocks to gain on the day, rising 0.76%. Moody's cut the ratings of 15 financial institutions after U.S. markets closed, including giants like Bank of America, Goldman Sachs and JPMorgan, citing concerns about the stability of the global financial system. Meanwhile, downgraded banks moved up 0.5% to 3.5% as a ratings downgrade wasn’t as deep as expected. Implied volatility surged above the 19.5 level on moderate trading volumes.
Friday, June 22, 2012
Hit hard by global data
Stocks took their second hardest knock so far this year as economic reports illustrating a slowdown in euro-area manufacturing and Chinese output increased investor anxiety, with oil falling below $80 a barrel gold prices below $1,600 an ounce. Jobless claims fell by 2,000 last week, to 387,000, illustrating a lackluster U.S. labor market. Also, Philly Fed factory gauge plunged in June to the negative 16.6 from negative 5.8 in May, lowest level in more than 10 months in June. Meanwhile, the Conference Board’s index of leading economic indicators rose 0.3% in May. Tech stocks sank with the broader market, with Micron Technology and Red Hat among the notable decliners. Micron fell almost 8% after the co. reported a loss, taking a hit from weak pricing for memory chips. Red Hat gave up $ more than 6% after the software maker reported a weaker-than-expected outlook. Facebook was one of the few tech stocks to gain on the day, rising 0.76%. Moody's cut the ratings of 15 financial institutions after U.S. markets closed, including giants like Bank of America, Goldman Sachs and JPMorgan, citing concerns about the stability of the global financial system. Meanwhile, downgraded banks moved up 0.5% to 3.5% as a ratings downgrade wasn’t as deep as expected. Implied volatility surged above the 19.5 level on moderate trading volumes.
