Manufacturing activity in the United States continued to expand, but at its slowest pace in more than two years. The Institute for Supply Management said its U.S. Manufacturing Index declined to 51.1% in August from 52.7% in July.
The benchmark index was down as much as 2.4%, with energy dominating the list of losers. West Texas Intermediate crude oil for October delivery was down as much as 7% to $45.76 a barrel, following a remarkable 27% increase over the previous three sessions.
Here are the 10 S&P 500 stocks showing the largest declines on Tuesday:
NEW YORK (Reuters) - The Federal Reserve will probably only gradually raise interest rates, irrespective of whether it decides to take the first step a few months earlier or later, a top U.S. central banker said on Tuesday.
NEW YORK (Reuters) - Oil prices tumbled 8 percent on Tuesday in volatile trading that sent Brent futures back below $50 a barrel as weak Chinese data revived concerns about demand for petroleum after crude's three-day rally of more than 20 percent.
DETROIT (Reuters) - The U.S. auto industry powered ahead in August, topping sales estimates and shrugging off gyrating stock markets as consumers continued to show their penchant for pickup trucks and SUVs.
MEXICO CITY (Reuters) - Mexico's government withheld hundreds of millions of dollars inÂ tax refunds owed to Procter & Gamble, Unilever, and Colgate combined as it sought to coax them and other multinationals to pay more income tax locally, according to people close to the talks.
OTTAWA (Reuters) - The Canadian economy shrank again in the second quarter, putting the country in recession for the first time since the financial crisis, with a plunge in oil prices spurring companies to chop business investment.
Remember when the oil crash was supposed to be "unequivocally good" for the global economy and the US consumer, only for this to be disproven as the biggest macroeconomic lie since "QE is good for the people"? We do - quite vividly - which is why in December of last year we presented "150 Billion Reasons Why Low Oil Prices Are Not Good For The Global Economy" and countless other articles subsequently explaining why the great oil collapse of 2014 (and 2015) is actually "unambiguously bad." It took the so-called experts the usual 6-8 months to catch up, and admit they were wrong or at least stay silent this time.
In fact, 10 months after our first exposition on the death of the Petrodollar, the massive upcoming reserve liquidation (read Treasury selling) that is about to be unleashed as a result of the soaring dollar and plunging price of oil, has finally become a topic du jour at such banks as Bank of America and Deutsche Bank, who have finally grasped that the great oil crash precipitated nothing short of the world's first Reverse QE episode in history as some $10 trillion in accumulated reserves start being sold.
That, however, mostly impacts the uber-wealthy: those whose net worth is invested in financial assets which are about to be sold en masse by some of the world's biggest central banks. Where it hits much closer to home is when firms such as Houston based Conoco ...
LONDON (Reuters) - China's giant manufacturing industry contracted and euro zone and U.S. growth eased in August in data published on Tuesday, while the International Monetary Fund cut its forecast for world growth this year.
(Reuters) - Wall Street slumped more than 2 percent on Tuesday, pushing all three major U.S. indexes into losses for the year after weak data from China added to fears that a slowdown in the world's second-largest economy will constrain global growth.
Submitted by David Stockman via Contra Corner blog,
Call it the rigor mortis of the robo-machines. About 430 days ago the S&P 500 crossed the 1973 mark for the first time - the same point where it settled today.
In between there has been endless reflexive thrashing in the trading range highlighted below. As is evident, the stock averages have not "climbed" the proverbial wall of worry; they have jerked and twitched to a series of short-lived new highs, which have now been abandoned.
Surely most thinking investors have left the casino by now. So what remains is chart driven trading programs, racing madly up, then down, then back up again - rinsing and repeating with ever more furious intensity.
^SPX data by YCharts
Accordingly, it goes without saying that the central bank driven casinos which now pass for financial markets are no place for savers, investors, rational speculators or any other known type of carbon unit. More than 80 months of ZIRP and nearly two decades of central bank financial repression have destroyed fre ...
As QE3 came to an end, World Stocks plunged back to economic reality before The Fed's Jim Bullard promised 'moar QE' if things get really bad. Well things have got really bad... JPMorgan's Global Manufacturing PMI just dropped to its lowest since July 2013..
And the 'wedge' between economic reality and market perception is closing rapidly.
Because - as we noted previously, "It's not the economy, its global stocks, stupid!"
We leave it to Raoul Pal to sum up...
World PMI is looking very much like replay of 2007/8... tipping point is nearly reached. Currently at 50.7. pic.twitter.com/19Q98RDMlc
(Reuters) - Fiat Chrysler Automobiles NV will move the production of Jeep Cherokee out of Toledo, Ohio as the automaker readies the facility for producing its redesigned Jeep Wrangler, Automotive News website reported.
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