Wall Street again today scored its worst week of the year burdened by the slowdown of China’s economy during the first quarter and concerns about the situation in Spain, which prevented investors celebrate the best results from JPMorgan Chase and Wells Fargo.
The Dow Jones Industrial Average, the benchmark of New York park, closed on Friday with a fall of 1.05% or 136.99 points to end at 12,849.59 units, a level 1.61% below that recorded the last day of last week.
This drop is the worst in terms week from mid-December, which occurs after that last Thursday and most weekly decline anotase 2012 of 1.15%.
Also, they closed on Friday marked the worst week of the year for the other two main indicators of Wall Street, the S & P 500 and the composite index of Nasdaq Stock Market, have accumulated some setbacks of 1.99% and 2.25% respectively.
These losses contrast with strong earnings on Thursday, when the Dow Jones signed his best day of the year and went to the symbolic barrier of 13,000 points lost on Monday buoyed by expectations that had generated data of Gross Domestic Product (GDP) of China is known today.
But the numbers on Wall Street largely disappointed, as the Asian giant’s economic growth slowed in the first three months of the year to 8.1%, compared with 8.3% that analysts had expected and below 8 , 9% for the same period last year.
The data confirmed the inevitable news that China’s economy is slowing its rapid growth as analysts continue to debate if you will live the country will be a landing “soft” or “sudden”.
The concerns were external stacking on the shoulders of Wall Street, which is again closely the situation in Spain while increasing the risk premium differential-German bond to close the day at 424 basis points.
With particular concern was that requests for funding of Spanish banks to the European Central Bank (ECB) join 316 343 000 euros in March, a new record.
The data, together with other worse than expected on producer prices in the UK or Italy industrial production led to a new bump on European stock exchanges: Madrid fell 3.58%, 3.43% Milan, Paris 2.47% and 2.36% Frankfurt.
National macroeconomic news did nothing but worsen the course of the session, since preliminary data from the University of Michigan showed that consumer confidence fell in April U.S. from 76.2 to 75.7 points.
In addition, the U.S. inflation lost momentum in March to raise the 0.3% consumer price index (CPI), one tenth less than in the previous month, bringing annual inflation stood at 2.7%.
This prevented the New York park could hold corporate earnings better than expected that this conference had two major U.S. banks and those who had spread the night before the search engine Google.
JPMorgan Chase, the largest bank by assets, fell 3.64% after announcing that in the first quarter of $ 5.383 million won (1.31 dollars per share), 3% less year but above 1, $ 16 per share that was expected.
Wells Fargo, for its part fell 3.47% despite the same period gained 4.022 million dollars, 13% more yoy.
Neither had a great welcome in the market the results of Google, which left 4.06% despite announcing that won 60.7% more year in the first quarter, but while parsing its plan to distribute a stock dividend that will lead to a division title 2 for 1.
Earnings season will come next week charged with major accounts to take the pulse of the economy such as Citigroup, Mattel, Goldman Sachs, Coca-Cola, Johnson & Johnson, IBM, Inte, American Express, Morgan Stanley, DuPont, Bank of America, Verizon, Travelers, McDonald’s or General Electric, a wide round.
Category: Business News