Monday October 21, 2019

// October 1st, 2019 // Daily News

Dow drops 250 points after weakest manufacturing reading in 10 years

ISM Manufacturing slips to 47.8 in September, vs. 50.2 expected
Stocks dropped on Tuesday, the first trading day of the fourth quarter, as disappointing manufacturing data stoked worries over the U.S. economy.
The Dow Jones Industrial Average traded 250 lower, or 0.9% after rallying more than 100 points earlier in the day. The S&P 500 slid to trade 0.9% lower. The Nasdaq Composite was down 0.7%.
The Institute for Supply Management said U.S. manufacturing activity contracted to its worst level since June 2009. ISM Chair Timothy Fiore pointed to trade weighing on manufacturing in a statement.
Shares of manufacturers such as Honeywell, 3M and Eaton rolled over on the data release, trading at least 1.7% lower.
U.S. and Chinese negotiators are expected to meet next week in Washington to discuss a potential trade deal between the world’s largest economies.
Treasury yields reversed earlier gains as investors dumped equities in favor of the traditionally safer U.S. bonds. The 10-year yield was down at 1.62% after rising to around 1.75%. The 2-year rate dropped to 1.54% from about 1.68%.
Wall Street ended higher on Monday on the back of renewed optimism in U.S.-China trade talks. A spokeswoman for the U.S. Treasury said the White House “is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time.” This relieved some earlier fears raised by reports last week that the U.S. has been looking at restricting U.S. investments in China.
Investors entered the fourth quarter with the major averages struggling to reach record highs set earlier in the year. The Dow and S&P 500 were more than 1% from their all-time highs entering Tuesday following several failed attempts at to break them. The Nasdaq was about 4% below its record.
“Historically, the fourth quarter has tended to be one of the best periods for stocks,” said Keith Lerner, chief market strategist at SunTrust Private Wealth, in a note. “We could certainly see another setback before year end. There have only been two pullbacks of more than 5% for the S&P 500 this year versus an average of about three historically.”
“However, unless we see a sharp escalation in trade tensions, we do not anticipate anything in the magnitude of the 2018 selloff,” Lerner said.


Today’s Inspiration

Be Willing and Yielded
You do not have to depend on your own human efforts to overcome adversity and opposition or to earn favor and win promotion. When God is ready to move in your life, He will give you favor and promotion—and no devil in hell or person on earth will be able to prevent it from happening.

It doesn’t matter what people think of you. Your weaknesses and inabilities don’t make any difference to God. His criteria for using people is not their talents, gifts, and abilities. He is looking for people who are willing and yielded. God looks for availability, not ability.

Let God build you, your reputation, and your career. When the time is right, He will deliver you out of adversity, and then you’ll see the fulfillment of your dreams.

Prayer Starter: Father, I thank You that my times are in Your hands (see Psalm 31:15). Help me to keep my trust in You, knowing that all blessings and promotion come from You alone. In Jesus’ Name, Amen.

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