Published August 05, 2013
FOX Business: Capitalism Lives Here
The markets dipped into the red on Monday as traders took advantage of a reprieve in the stream of corporate and economic news to adjust their holdings.
The Dow Jones Industrial Average dipped 46.2 points, or 0.3%, to 15612, the S&P 500 fell 2.5 points, or 0.15%, to 1707 and the Nasdaq Composite rose 3.4 points, or 0.09%, to 3693.
There was no rest for Wall Street's weary last week. The markets received the latest communique from the Federal Reserve and a tepid monthly jobs report, in addition to a slew of other economic data and earnings. This week was set to be quieter, with a slimmer number of reports due out.
"With the July FOMC meeting and last Friday’s payroll report now past and still leaving us with a state of confusion with what comes next," Peter Boockvar, chief market analyst at The Lindsey Group, wrote in an email to clients.
The Institute for Supply Management’s non-manufacturing PMI checked in at 56 in July, from 52.2 in June. The reading beat estimates of 53.
Meanwhile, HSBC's gauge of service-sector output in China clocked in at 51.3 in July, matching a June reading. Readings above 50 point to expansion, while those below indicate contraction. The report showed signs of stabilization for the world's No. 2 economy, according to Hongbin Qu, the bank's chief economist for China.
Still, Qu warned that "without a sustained improvement of demand, services growth is likely to remain lackluster, putting downside pressures to employment growth.”
On the corporate front, HSBC (HBC) unveiled quarterly profits that widely missed analysts' expectations. Shares of Europe's largest came under heavy pressure in both European and U.S. trading. Disney (DIS) posts its earnings after the bell on Tuesday.
In commodities, U.S. oil futures fell 38 cents, or 0.36%, to $106.56 a barrel. Wholesale New York Harbor gasoline sold off by 1.5% to $2.951 a gallon. Gold dipped $8.10, or 0.62%, to $1,302 a troy ounce.
The Euro Stoxx 50 fell 0.03% to 2810, the English FTSE 100 dipped 0.09% to 6642 and the German DAX slumped 0.1% to 8398.
In Asia, the Japanese Nikkei 225 sold off by 1.4% to 14258 and the Chinese Hang Seng rose 0.14% to 22222.