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Chinese Manufacturing data painted a grim macro picture, with Factory Orders falling below consensus estimates. The Purchasing Managers Index (PMI) for July came in at 47.8, which was below the June figure of 49.4.
Greek bailout talks continued to provide insight into the country’s financial position, with the government highlighting a 8.5% fall in tax revenues for the period. This was exacerbated by the recent five week closure of Greek banks.
Energy stocks weighed heavily on the market on Monday due to crude oil oversupply concerns and disappointing earnings released on Friday. Finishing 0.99% lower, the Dow Jones was the hardest hit index.
On the economic front, Personal Income for June came in at 0.4%, which was above initial estimates of 0.3%. Construction Spending and the ISM Index came in below consensus, making investors concerned that a Chinese slowdown could have a spillover effect on the manufacturing and property sectors.
Markets were unable to find support on Tuesday with the Nasdaq retreating 0.41% during the afternoon session. Apple continued its slide with the stock touching six month lows. On the interest rate front, Atlanta Federal Reserve President Lockhart reiterated Yellen’s recent comments telling reporters that a September shift in monetary policy could be needed.
Factory Orders for June came in at 1.8%. This was in line with market expectations.
New stock borrowing measures implemented by Chinese authorities had a muted effect on the markets on Wednesday with the Shanghai Composite finishing 1.65% lower. The S&P 500 and Nasdaq, however, managed to snap back from a 3-day losing streak, while the Dow was dragged down by Disney.
On the economic front, the Trade Balance deficit rose in June with the figure coming in at $43.8 billion.
Earnings out of the media sector played on investors’ minds, with the S&P 500 finishing the session 0.78% lower at 2,083. It was quiet on the economic front, with only Initial and Continuing Claims reported.
Non-Farm Payrolls sent volatility into overdrive on Friday, with the major currencies reacting to news that 215,000 jobs were created in July. Slightly below the consensus of 225,000, the unemployment rate was unchanged at 5.3%. The Dow Jones was 76 points lower during the morning session.
With earnings season in full swing, next week we will see reports from companies including : CenterPoint Energy (CNP ), Creditcorp Ltd (BAP ), Federal Agricultural Mortgage Corp (AGM ), International Flavors & Fragrances (IFF ), Landauer Inc (LDR), Medley Capital Corp (MCC), Nature’s Sunshine Product (NATR), Walter Investment Management Corp (WAC), Arcos Dorados Holdings (ARCO ), Bluerock Residential Growth REIT (BRG ), China Yuchai International Ltd (CYD ), Computer Sciences Corp (CSC), Johnson Outdoors (JOUT ), Adcare Health Systems (ADK).
Please note that this is only a selection of companies.
The following economic data will also be released: Productivity, Unit Labor Costs on Tuesday; The Treasury Budget on Wednesday; Initial Claims, Retail Sales, Export Prices and Import Prices on Thursday; PPI, Industrial Production, Capacity Utilization and the UOM Sentiment Index on Friday.