Top 3 Reasons Markets Got Drop Kicked After Horrible Jobs and Manufacturing Data
Markets closed down on Wall Street: DJI -2.22% SP500 -2.28% Nasdaq -2.33% Gold 0.16% Oil -2.87%.
Markets were in a downtrend all day as trading volume remained low. On the commodities front, Oil (NYSE:USO) dropped over $3 from the high of the day to land back below $100 a barrel. Gold (NYSE:GLD) caught some love on the usual QE3 talk and another downgrade of Greece, while Silver (NYSE:SLV) got crushed nearly 5%.
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Today’s markets were down because:
1) Economic data sucked. First we started with a much weaker than expected ADP Employment report. That was the shot heard ’round Wall Street. Then analysts tripped over each other to lower estimates for tomorrow’s big Non-Farm Payrolls report. After that, the pessimists were rewarded again as ISM Manufacturing missed analyst expectations by a mile. The mantra for the remainder of the day has been “slowdown”.
2) Automakers offered disappointing news. The mantra continued as Ford (NYSE:F), General Motors (NYSE:GM), and Toyota (NYSE:TM) announced poor automobile sales data. But data was brighter for retailers as we noted in our Retailer Roundup.
3) Tech had another big day. Nokia (NYSE:NOK) is getting hit like a bear raid and LinkedIn (NYSE:LNKD) broke technical support as we warned yesterday. On a positive note, Netflix (NASDAQ:NFLX) and Apple (NASDAQ:AAPL) have a lot of positive focus on their businesses during the All Things Digital Conference and next week’s Apple Developer’s Conference. But the stocks are still down in the slaughter.
Now that you’re in the know, enjoy your evening!