A disappointing report on US Factory orders, helped the Dow move lower while all ten groups in the S&P 500 fell at least 0.4 percent, with Chevron (CVX) down 1.1 percent and Wal-Mart down 1.7 percent, leading the decline. This drop off could be merely based on people taking profits from a stellar January, however the markets, specifically the S&P 500, could be a bit overvalued, based on the slow economic recovery. The VIX did jump 13 percent today to 14.53, and is sporting the biggest gain on the year so far. The Euro also looked sluggish and slipped from recent highs against the dollar and yen on political uncertainty in Italy and rising unemployment in Spain.
The Hang Seng went the opposite direction losing 0.4% today hit by weakened non-bank financial, brokers and insurers. China Life Insurance, the largest mainland insurer, slid 3.5% today. A rival, Ping AN Insurance, lost 2.6%. Haitong Securities lost 4.4%. China Construction Bank, China’s second largest lender, slipped 0.8% today. China Petroleum and Chemical Corp was the only of 3 Chinese Oil companies to rise today gaining 3.4%.
European shares were down today with revised data that Spain’s economy has contracted more than previously estimated, 0.3% vs a previously estimated 0.1% in 2010, the Spanish IBEX was down 0.8% today. Spanish and Italian Banks were down with BancoSantandor losing 1.3% and Unicredit down 0.8%. Trading was thin today due to the UK market being closed for a public holiday. Nokia, the world’s second largest cell phone maker, jumped 11% today after rival, Samsung, lost a court case against Apple. Around Europe the Dax is up 0.2%, the CAC 0.10% and the Madrid General is down 0.4%.
Ford breaks ground on a new factory in Chongqing, China where it will produce its 2-liter ecoboost engine.
Crude and Natural gas are both set to begin up over 1%, silver up 0.5% and gold the opposite way 0.2%.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu
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