Stocks sank slightly lower in early trading and seems to be moving lower after shrugging off mixed economic data as the dismal third quarter comes to a close. Stops have fallen over 10 percent in Q3, the worst performance since the peak of the financial crisis. However, according to a barometer from Thompson Reuters and the University of Michigan, consumer sentiment actually rose to 59.4 in September versus the three-year low of 55.7 from the month before. Chicago manufacturing activity also rose to 60.4 for the month over 56.5 in August. The U.S. also received some lackluster news as well, however, as the U.S. Department of Commerce said that income fell in August, the first decline in two years. Consumer spending fell 0.2 percent, meaning Americans had to dip into their personal savings to keep up. Economic activity from China also came in weaker than the market had hoped. Financials are leading decliners. Bank of America (BAC) made a splash after announcing it plans to add debit card fees for customers. Shares are down over 2 percent. Morgan Stanley (MS) is down almost 8 percent as investors worry about the bank’s exposure to Europe. In commodities, oil prices also dipped about 1.5 percent and gold has stayed flat.
Major U.S. Stock Indices
DJIA: 11,035.99 (-1.06 percent)
S&P 500: 1,145.19 (-1.31 percent)
NASDAQ: 2,443.75 (-1.49 percent)
Russell 2000: 655.55 (-1.09 percent)
In other news:
- European banks should not seek a Buffett bailout like the ones that Goldman Sachs (GS) or Bank of America received, so says the Berkshire Hathaway’s (BRK.A) Oracle. [Bloomberg]
- The Fed’s Operation Twist has been criticized for not doing enough to help job growth, but it could do wonders for corporations. [Marketwatch]
- Netflix (NFLX) had a pretty rough quarter as well with panned price increases, a shaky business spin-off, and share prices roughly losing half their value. But has the company’s demise been exaggerated? [Fortune]
- The trouble with “Rock Star CEOs” and superheroes is that you’re basing your company’s future on a miracle-working savior. [Economist]
- Priced at $199 per tablet, Amazon (AMZN) is selling its Kindle Fire at a loss in hopes of taking market share away from Apple (AAPL). [Reuters]
Check back for more news.