Stocks got off to a weak start after the run up yesterday. Selling intensified after September Chicago PMI numbers were weaker than expected. Expectations called for a number of 52.9. The actual number was 49.7.
Spain announced the results of its bank stress test. They reported a shortfall of 59.3 billion euros. This number was in the expected range and led to increased buying. Buying slowed and the S&P 500 closed off 0.45%.
Farm equipment stocks outperformed the market after the Department of Agriculture crop report showed a decline in grain inventory. Deere and AGCO traded higher.
The University of Michigan’s Consumer Sentiment Survey for September fell to 78.3 from the 79.2 posted in the preliminary survey. Economists expected the number to come in at 79.0.
The euro fell against the dollar today. This is the second straight week in which the euro has declined against the dollar. Uncertainty remained regarding Spain’s prospects to receive funds to recapitalize their banks.
Trading was light on the last day of the third quarter. Combined volume on the exchanges was slightly below average volume. On the NYSE, declining issues outpaced gainers 3 to 2. On the NASDAQ declining issues were nearly 2 to 1 versus gainers.
Source: PFS Group
