Chinese decline hits Wall Street

“N”>NEW YORK – Wall Street sank on Monday, with the Nasdaq losing nearly 1 percent after the steepest decline in Chinese stocks in eight years increased concerns that cooling growth in the world’s No. 2 economy could hurt China’s trading partners.

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The Australian sharemarket shrugged off tumbling Chinese stocks and weak data to reverse early weakness as most investors remained on the sidelines.

At 12:24 p.m. ET the Dow Jones industrial average was down 115.38 points, or 0.66 percent, at 17,453.15, the S&P 500 was down 9.07 points, or 0.44 percent, at 2,070.58 and the Nasdaq Composite was down 39.42 points, or 0.77 percent, at 5,049.22. The S&P 500 index shed 0.6 per cent after Friday’s 1.1 per cent fall, and the Nasdaq Composite Index dropped 1 per cent. It’s only a matter of time until we see the market plummeting again.

The S&P 500 ended with a 5-session lost – the first since the start of the year.

The NYSE showed 471 stocks at 52-week lows, the most in one day since October (HKSE: 3366.HK – news). 15. He added that China’s massive economic footprint means “China is a much bigger risk right now than Greece ever was”.

In the stock market today, Wabtec (NYSE:WAB) jumped almost 7% on news it’s acquiring French railroad equipment maker Faiveley Transport for $1.8 billion.

Treasuries are rallying, and the yield on the benchmark 10-year note is down six basis points to 2.214%.

On Monday morning, investors received readings on US durable goods orders in June, which rose 3.4 per cent, compared with analysts’ estimates of a 2.7 per cent rise.

The fear of lower economic demand from China also caused a drop in other precious metals such as aluminum, iron ore, and copper. y denominated in US dollars.

Later in the session, at 1930 BST, the Dallas Fed manufacturing activity for July is on tap.

Petroleum-linked stocks also dropped, including Dow member Chevron (-1.6 per cent), Anadarko Petroleum (-2.3 per cent) and EOG Resources (-2.6 per cent). The bank however reported that its earnings per share exceeded expectations.

The US calendar includes a Federal Reserve policy meeting and earnings reports from Facebook, Pfizer and Procter & Gamble.

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Authorities may want to “test whether the market has recovered its resilience”, said Fu Xuejun, a strategist at Huarong Securities. Teva’s CEO Erez Vigodman stated that the move will help reinforce the company’s new business model, accelerating growth and diversifying revenues through products and geography. Energy sector earnings have been the drag (S&P 500 blended earning would be set to grow 4% without them) and will be in focus this week as Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) report results. “But so far it is OK, but it isn’t stellar”.

News Item : Outlook: Aus shares set for a soft open