Inventories fall after weak European growth data


US stocks fell early trading on Friday after a series of disappointing European data that highlighted concerns about global economic growth.

What do the indexes do?

The Dow Jones Industrial Average

DJIA, -1.07%

down 118 points, or 0.5%, to 25,845, while the S & P 500 index

SPX, -0.98%

was down 11 points, or 0.4%, to 2,843. The Nasdaq composite

COMP -1.14%

decreased by 29 points, or 0.4%, to 7,811.

What is the engine of the market?

Global growth concerns were highlighted after a series of March purchasing manager index readings that showed a further slowdown in activity in the eurozone. IHS data firm Markit said its Composite Purchasing Managers Index – a measure of activity in the manufacturing and services sector – fell to 51.3 in March from 51.9 in February. while economists forecast a decline of 51.8. A reading above 50 indicates an increase in activity.

The data indicated a growing contraction in manufacturing activity, with the region's manufacturing PMI declining to 47.7, the lowest in the last 71 months, compared to 49.4 in February.

In the face of pressure on European equities, investors bought bonds, raising the yield on the 10-year German government bond, known as bund, to below 0%. He changed hands at -0.09% in a recent action.

At the same time, trade relations between the United States and China made the headlines, after President Trump said Friday morning on Fox Business Network: "I think we are approaching very closely". a trade agreement with China. "That does not mean we're getting there, but I think we're getting closer."

This comes just days after the president warned the markets that tariffs on Chinese products could remain "for a long time", even after the conclusion of a trade agreement, to ensure compliance by China's conditions.

How did the benchmarks perform yesterday?

US stocks began Thursday's session with a weaker tone, which analysts attributed in part to growth concerns after the US Federal Reserve signaled to most policymakers that no rate hike expected in 2019, as well as persistent concerns about the economic situation.

But equities quickly erased their losses as technology stocks took the lead. The Dow rose 216.84 points, or 0.8%, to 25,962.51, its largest daily increase since February 15, while the S & P 500 gained 30.65 points, or 1.1%, at 2,854.88. Nasdaq Composite, a state-of-the-art technology, gained 109.99 points, or 1.4%, to 7,838.96. The S & P and Nasdaq each posted their best one-day gains since March 11.

What do analysts say?

"A series of worse than expected European economic publications have sounded the alarm, not only for the bloc, but also for the global economy, providing further evidence of a global slowdown in the economy. economic activity, "said David Cheetham, main market. analyst at XTB, in a note. "These sectoral surveys are closely monitored and, unlike employment or GDP figures, they are generally regarded as leading indicators because of the nature of their composition, which is strongly influenced by expectations for the future. 39; future. "

Which stocks are to watch?

Actions of Tiffany and company.

TIF, + 0.19%

rose 0.7%, after the luxury jewelry retailer announced fourth-quarter earnings above expectations surpassing Wall Street's expectations, but did not achieve comparable store sales growth.

Nike Inc.

NKE -4.61%

Equities fell 3.6%, even after the company announced Thursday third-quarter earnings ahead of analysts' expectations and forecast revenue. The stock has risen 18.7% since the beginning of the year.

Actions of Hibbett Sports Inc.

HIBB, + 22.17%

up 21.1% Thursday morning, after the sporting goods store operator recorded same-store sales growth of 3.8%, compared with the stable growth rate expected by the analysts. The company also released forecasts for fiscal year 2020 that exceeded expectations.

GameStop Corp. The shares rose 0.9%, after the video game retailer announced Thursday night that retail veteran George Sherman would assume the role of chief executive officer of the company.

What data are being developed?

After disappointing data in Europe, the IHS data company Markit will publish its index readings of the manufacturing and services sectors in the United States at 9:45 am ET.

At 10 am, data on existing home sales for February will be released by the National Association of Realtors.

At the same time, the Department of Commerce will release wholesale inventory data for the month of January.

At 2 o'clock in the afternoon. the Treasury Department will announce the magnitude of the federal budget deficit for the month of February.

What are other markets doing?

European equity markets remained down, with the STOXX 600 Europe Index

SXXP, -0.62%

0.4% and the German DAX

DAX, -0.62%

at 0.3%.

Asian equity markets closed slightly higher, with the Nikkei (Japan), the Hang Seng Index (Hong Kong) and the Shanghai Composite Index (China) advancing slightly on Friday.

In commodity markets, crude oil prices

CLK9, -1.77%

were in decline, while the price of

GCJ9, + 0.51%

Pink. The value of the US dollar

DXY, + 0.23%

meanwhile, slightly up on Friday.


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