Stocks Fall, Manufacturing Rises
Stocks fell yesterday on concerns that the Chinese stock market fell today. Stocks fell a lot more today on scares that the recent and ongoing bank failures are a bad sign for the financial community. In addition, stock investors think the market has gotten ahead of itself. So, here we have a pullback.
Bond prices continue to increase (lower interest rates).
The Dollar got stronger by a penny and Oil/Gasoline are moving sideways.
Gold has a slight upward bias.
In the news today…..
Unemployment in Europe – is now 9%, but with pockets of misery, like Spain’s 20% unemployment rate.
Bank of America – is about to pay back its bailout money (probably $20B), plus it is being pressed to pay $500M to cancel the special loss sharing deal with the Treasury.
Manufacturing – expanded in August for the first time since January 2008.
Pending Home Sales – increased slightly, but realtors now understand that the $8000 first time homebuyer tax incentive is bringing sales forward as this program ends in October. If true, this means future sales will fall off.
Here are the last numbers for today:
Dow Jones 30 Industrial – 9306 (down 190 points)
10 Year Treasury Bond – 3.38% (down 0.02%)
Euro – $1.4213
Gold – $955 (up $3)
Oil – $68.23 (down $1.73)
