SIGN IN YOUR ACCOUNT TO HAVE ACCESS TO DIFFERENT FEATURES

FORGOT YOUR PASSWORD?

FORGOT YOUR DETAILS?

AAH, WAIT, I REMEMBER NOW!

Mario Randholm

  • LOGIN
  • Home
    • Team Experience
      • Mario Randholm
  • Blog
  • Resources
    • Partners
      • Thomson Reuters
      • MultiCharts
      • Municipalidad de Miraflores
      • TradingDiary Pro
    • AutoTradingAutoTrading
    • R Option ModelModel
    • Historical Performance
    • Comparison Matrix
  • Memberships
  • FAQ
    • Term of Service
Contact Us
  • Home
  • Blog
  • Market Update
  • Market Information

Market Information

randholm
February 3, 2014 11:41 pm / Published in Market Update

Market Information

A round of weak manufacturing reports Monday reignited fears about the health of the U.S. economy, fueling the sharpest one-day decline in the Dow Jones Industrial Average since June.

After weeks of focusing on economic and political troubles in emerging markets, investors shifted their attention to domestic concerns. Factory output expanded more slowly in January as manufacturers dialed back on adding to their inventories, while weakness abroad and unusually cold weather at home muffled activity.

The Dow tumbled 326.05 points, or 2.1%, to 15372.80, in its seventh triple-digit drop of 2014. The average is down 7.3% this year.

Asian markets fell in early trading Tuesday, with Japan down 2.3%, Hong Kong down 2.2.% and South Korea down 1.5%.

Recent reports have raised concerns that the U.S. economy may have lost some of its momentum. Job creation skidded sharply in December, and some worry January’s report, due Friday, might also disappoint. Several big retailers have reported lackluster holiday sales, and the housing market has shown signs of cooling in the face of higher interest rates.

Concerns about the economy come at a time when the Federal Reserve has begun its long-awaited steps toward reducing economic stimulus. The result Monday, traders said, was stepped-up selling from long-term investors who up until this point had largely sat tight during January’s stock declines, when the focus had been on woes in places such as Turkey, Argentina and China.

Hardest hit Monday were the stocks of smaller companies, whose fortunes are often seen as more closely tied to the U.S. economy than are those of large-company stocks. New York Stock Exchange composite volume was 4.68 billion shares, the most in a session this year.

Meanwhile, bonds rallied on the combination of the soft economic news and buying from investors taking shelter from the stock-market tumult. As bond prices rose, the yield on the Treasury 10-year note fell to 2.585%, from 2.669% late Friday, its lowest level since Oct. 31. Gold futures shot higher, benefiting from renewed interest in the metal as a haven.

The broader outlook for the U.S. economy remains upbeat. Last week, the Federal Reserve—announcing another pullback on a bond-buying program meant to spur growth—said the economy has shown “growing underlying strength.” On Monday, the Fed said banks had made it easier for businesses to secure loans, while companies were showing more appetite for borrowing late in 2013.

 

Data from WSJ.com

Check your inbox or spam folder to confirm your subscription.

Categories

Twitter

Lightning fast alerts:

twitter.com/MarioRandholm

twitter.com/RandBots

Archives

Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy

ABOUT US

Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.

CONTACT US

Message us

Mario's Linkedin

Past performance is no guarantee of future results.

Disclaimer:

This site is for informational purposes only. Nothing on this site should be considered investment advice or as a solicitation to buy or sell any security.

Please see our full Disclaimer.

TOP
 

Loading Comments...