Thursday, January 2, 2014

Economic Journal - Thursday, 1/2/2014

(As of 7:25 am PST)
 
Stocks are sharply lower in the first trading session of 2014.  Disappointing data out of China has halted a screaming market that finished 2013 at record heights.  Chinese manufacturing growth decelerated in December according to China’s official Purchasing Managers’ Index (PMI).  A similar report from HSBC showed manufacturing growth slipping as well in China.  The negative sentiment carried across the seas from Asian markets into Europe and selling greeted the US market at the open.  Some disappointing headlines in the US added to the pressure.  Jobless claims fell just slightly, and the ISM manufacturing index slipped as well.  In corporate news, Apple shares are down 1.25% after being cut to “market perform” from “outperform” by Wells Fargo.  Shares of Twitter have recovered today, up 2% after tumbling nearly 20% in a two-day slide.  Gold is trading back over $1200/oz. with the precious metal adding $20 today, or 1.5%.  Interest rates are lower as safe haven treasuries found some upside today.  Volume is still fairly light as many traders are still on vacation, however expect things to get back to “normal” next week as 2014 gets underway.

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