Wall Street Drops on Weak Chinese Economic Data, Multiple Explosions at Boston Marathon

Michael Teague |

Wall Street Drops on Weak Chinese Economic Data, Multiple Explosions at Boston MarathonThe deadline for tax-return filings, a Gallup survey was released indicating that 55 percent of Americans find the tax system to be fair, the lowest percentage recorded by the organization since 2001.  The telephone poll sampled 1,005 adults from across all 50 U.S. states and the District of Columbia from April 4 to April 7, and showed that 64 percent of Americans believe their taxes will go up over the next year.

The bigger news by far was the economic data from China that was released, showing that first-quarter GDP had grown 7.7 percent on the prior year, less than the 8 percent that had been forecast by both Reuters and Dow Jones Newswire, and less that the 7.9 percent growth figure from the fourth quarter of 2012.

Additionally, industrial production was up 8.9 percent, just over a percentage point shy of the 10 percent expected gain.

The news poured fuel on gold’s downward spiral, losing over 9 percent to $1,365 per ounce, while silver lost almost 11 percent, and other commodities following suit.

The day’s bad economic news was compounded by two explosions that went off at the finish line of the Boston Marathon, three hours after the race had ended and shortly before the conclusion of trading. Initial reports had little information on the origin of the explosions, though news agencies and eye-witness accounts posted to twitter testified to a chaotic scene with many injuries and a great deal of bloodshed. Reports of multiple deaths are starting to emerge.

The Dow lost 1.79 percent on the day, closing at 14,599.20, dragged down by Caterpillar, who lost 3.19 percent with shares closing at $82.34, while oil giant Chevron (CVX) lost 2.49 percent to $116.95, and Exxon Mobil (XOM) was down 2.45 percent to $86.81.  The top three S&P losses are being seen as the direct result of the underwhelming economic news out of China.

Only one of the Dow’s components posted gains on the day, with Wal-Mart Stores (WMT) up a slight 0.22 percent to close the day at $78.73.

The S&P took a sizeable hit, losing 2.30 percent to close at 1,552.37.  The bright spot was Sprint Nextel Corp. (S) who closed up almost 14 percent to $7.09 after Dish Network (DISH) made an unexpected and significantly larger counter-offer to the SoftBank, the Japanese telecom company who had recently been bidding to purchase the U.S.’s third largest wireless service provider.

Life Technologies Corporation also clocked a large gain on the news of a merger, up 7.54 percent closing at $73.11 after it was announced that the company would be purchased by Thermo Fisher Scientific (TMO) for $13.6 billion.

Otherwise, only five other S&P components made gains on the day, while oil and gas stocks dragged the index downward, led by Pioneer Natural Resources (PXD), Newfield Exploration (NFX), Anadarko Petroleum Corp. (APC), and Nabors Industries Ltd. (NBR) all losing over 6 percent or more.

The Nasdaq took the biggest percentage loss on the day, dropping 2.38 percent to 3,216.49, weighed heavily by tech stocks.  Intel (INTC) lost 1.38 percent to close at $21.38, followed by Facebook (FB), down 3.21 percent to $26.52 , Cisco Systems (CSCO) down 2.27 percent to $21.05, and semiconductor manufacturer Micron Technology (MU), down 4.50 percent to 9.56.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
APC Anadarko Petroleum Corporation 63.54 -0.22 -0.35 4,063,470
CSCO Cisco Systems Inc. 30.15 -0.01 -0.03 15,140,452
CVX Chevron Corporation 101.30 -0.57 -0.56 5,622,393
DISH DISH Network Corporation 57.40 -1.78 -3.01 3,862,911
FB Facebook Inc. 132.07 2.07 1.59 19,081,133
KORS Michael Kors Holdings Limited 48.95 -0.65 -1.31 2,447,015
MU Micron Technology Inc. 16.94 -0.27 -1.54 18,710,303
NBR Nabors Industries Ltd. 13.05 -0.07 -0.53 6,290,703
NFX Newfield Exploration Company 43.23 -0.79 -1.79 2,020,899
PXD Pioneer Natural Resources Company 187.00 -2.38 -1.26 1,084,392
S Sprint Corporation 6.55 -0.17 -2.53 23,885,251
TMO Thermo Fisher Scientific Inc 150.66 -1.00 -0.66 1,589,510
WMT Wal-Mart Stores Inc. 68.34 -0.39 -0.57 7,844,583
XOM Exxon Mobil Corporation 86.62 -0.59 -0.68 10,736,170


Emerging Growth

Lithium-X Energy Corp.

Lithium X Energy Corp is engaged in exploring and developing lithium resources. Its projects portfolio includes Albemarle's Silver Peak brine evaporation pond project.

Private Markets

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…


Blockchain currencies (e.g. Bitcoin) provide a new disruptive way to transfer value between parties over the internet as opposed to going through banks. GoCoin provides online merchants with a suite…