US manufacturing data sinks stock market
Monday, July 02, 2012
The U.S. economy may falter following a recent report from the Institute for Supply Management revealing the nation's manufacturing industry contracted for the first time in three years.
The Institute for Supply Management's index dropped to 49.7 in June, compared to 53.5 in May, and displayed a worse reading than the projection from a recent Bloomberg News survey, which was decidedly pessimistic.
“Manufacturing is gearing down,” Neil Dutta, head of U.S. economics at Renaissance Macro Research in New York, whose 50.5 forecast was the lowest in the Bloomberg survey, told the news source. “It’s consistent with the idea that the uncertainty is weighing on businesses. Europe is taking a bite out of the export sector.”
The manufacturing data was so bad that it negatively affected the stock market as U.S. stocks dropped 62 points midday on July 2 to 12,818, according to a report from Bloomberg Businessweek. Of the companies featured on the Dow Jones industrial average, chemical company DuPont dropped the most of the 30, down 3.6 percent.
Investors should stay abreast of the latest developments surrounding the stock market and should also take advantage of online investment opportunities.
Sign-up for the eOption Daily Market Report
eOption’s Daily Market Report is a timely and informative service detailing equities that have recently met classic chart pattern conditions for bullish and bearish equities. To receive the eOption Daily Market Report, you must be a current client and have a current email address on file. Please contact firstname.lastname@example.org or login to your account and enroll for electronic statements or confirms. More Information