Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Overnight Markets: US stocks slump on weak factory data

Overnight Markets: US stocks slump on weak factory data

Wall Street declined on Monday, with the S&P 500 registering its worst drop since June, as manufacturing in the world’s largest economy slowed more than estimated in January as new order growth plunged by the most in 33 years.

The Dow Jones industrial average fell 326 points or 2.08%, to 15,373, the S&P 500 lost 41 points or 2.28%, to 1,742 and the Nasdaq Composite dropped 107 points or 2.61%, to 3,997.

The Institute for Supply Management’s factory index fell to 51.3 from 56.5 in January souring investor sentiment sharply.

Selling was broad-based. Telecoms and consumer discretionary were among the worst performing sectors. The Dow Jones Transportation average dropped 3.2%.

Stocks have been pressured as the Federal Reserve confirmed its commitment to withdrawing its market-friendly stimulus and by concern about growth in China.

Telecoms suffered on speculation AT&T Inc's (T.N) plan to slash prices on its large shared data plans could prompt other US carriers, particularly larger rival Verizon Wireless (VZ.N), to offer new discounts. AT&T lost 4.1% and Verizon lost 3.4%.

Charter Communications Inc (CHTR.O) is discussing raising its bid for Time Warner Cable Inc (TWC.N), sources said. TWC shares added 0.5%.

Britain's Smith & Nephew (SN.L) is to buy ArthroCare Corp (ARTC.O) for $1.7 billion in cash to strengthen its treatments for sports injuries. ArthroCare shares rose 8.2%.

Pfizer's (PFE.N) shares gained 0.7%, the only Dow stock to close higher, after its experimental breast cancer drug significantly delayed progression of symptoms in a mid-stage trial, meeting the study's primary goal.

Jos. A. Bank Clothiers Inc. slid 5% after telling Men’s Wearhouse Inc. it will not enter takeover talks.

Ford Motors fell 2.7% and General Motors slipped 2.3% after the largest US automakers reported wider declines in deliveries than estimated.

In Asia, shares declined on Tuesday in late morning trade after data showing weaker-than-expected growth in US manufacturing helped extend a rout that wiped about $1.9 trillion from the value of global equities last month.

The MSCI Asia Pacific Index lost 2.2% to 131 at 10 a.m. in Hong Kong. Japan’s Nikkei 225 plunged 2.6% to continue its slide after losing 8.5% last month. Hong Kong’s Hang Seng Index slid 2.3%. South Korea’s Kospi index fell 1.5%. Australia’s S&P/ASX 200 Index lost 1.4% and New Zealand’s NZX 50 Index dropped 0.8%. Singapore’s Straits Times Index retreated 1%.

Markets in mainland China, Taiwan and Vietnam are closed for holidays.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Play Baillie Gifford's Snell bullish on India's prospects following election

Baillie Gifford's Snell bullish on India's prospects following election

Citywire AA-rated manager is seeing good overall growth for the Asia reason but is wary of varying valuations.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter