Investors Turn to Dismal Economic Data as Debt Deal Reached
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Stocks started weaker Tuesday despite the likely approval of the debt ceiling deal, and now have continued lower as the Senate has voted to approve the measure. Now that the debt debate has been mostly settled, investors are turning their attention to fundamentals which have deteriorated.
Just past the 1 o'clock hour, the Dow is down 133, the Nasdaq is down 34 and the S&P 500 is down 17.
Investors appear more concerned about weak economic data which continues to pour in. Data this morning showed consumer spending unexpectedly fell 0.2 percent, the first decline in two years. Economists had been expecting a rise of 0.1 percent.
The consumer spending data follows weak manufacturing data Monday. The ISM factory index fell from 55.3 in June to 50.9 for July. Economists were looking for a more modest drop to 54.5. Numbers over 50 still point to economic expansion.
Last week's GDP reading may explain the full picture, with growth in the second quarter an anemic 1.8 percent and prior growth rates slashed to just 0.4 percent.
Given the market action this afternoon, gold has surged, last trading up $23.50 to $1,643.90. In the debt market, the 30-year fell below 4 percent.
UPDATE: Stocks continued to sell-off through the close. The Dow finished down 266, the S&P 500 fell 33 and the Nasdaq slipped 75.
Just past the 1 o'clock hour, the Dow is down 133, the Nasdaq is down 34 and the S&P 500 is down 17.
Investors appear more concerned about weak economic data which continues to pour in. Data this morning showed consumer spending unexpectedly fell 0.2 percent, the first decline in two years. Economists had been expecting a rise of 0.1 percent.
The consumer spending data follows weak manufacturing data Monday. The ISM factory index fell from 55.3 in June to 50.9 for July. Economists were looking for a more modest drop to 54.5. Numbers over 50 still point to economic expansion.
Last week's GDP reading may explain the full picture, with growth in the second quarter an anemic 1.8 percent and prior growth rates slashed to just 0.4 percent.
Given the market action this afternoon, gold has surged, last trading up $23.50 to $1,643.90. In the debt market, the 30-year fell below 4 percent.
UPDATE: Stocks continued to sell-off through the close. The Dow finished down 266, the S&P 500 fell 33 and the Nasdaq slipped 75.
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