John Paquet, today's bad news:
Robust data chill stocks
By Kevin N. Marder, CBS MarketWatch
Last Update: 10:23 AM ET Oct 1, 1999
Bond Report
NEW YORK (CBS.MW) -- A report from the nation's purchasing
managers showing a solid uptick in September manufacturing activity
and
a leap in prices paid
revived worries of
higher interest rates,
squeezing U.S. stocks.
At 10:13 a.m. ET, the Dow Jones Industrial
Average declined 95.93 points, or 0.9 percent, to
10,243.04. The key yardstick lost about 88 points
within minutes of the purchasing managers' release.
The Nasdaq Composite descended 1.1 percent.
The Standard & Poor's 500 Index fell 0.7 percent. The Russell 2000
Index of small-capitalization stocks sank 0.9 percent.
The National Association of Purchasing Management's September
manufacturing index rose to 57.8 from August's 54.2. Most economists
polled by CBS MarketWatch had expected a 54.4 number. A figure
above 50 correlates with an expanding manufacturing economy, while a
sub-50 level indicates contraction in the manufacturing sector.
Critically, the prices-paid subindex, the report's inflation measure, leaped
to 67.6 from 59.8, its highest perch since May 1995.
In the bond market, prices dropped on the NAPM
report. A sloppy showing in European bond
markets also dampened sentiment. The 30-year
Treasury dove 1 3/32, to yield 6.132 percent. See
Bond Report.
In other economic tidings, August personal income
rose 0.5 percent and personal spending increased
0.9 percent..Most forecasters had anticipated a 0.4
percent gain in income and a 0.7 percent rise in
expenditures.
cbs.marketwatch.com
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