Major indexes mostly closed in negative territory on Monday, largely dragged down by news of lackluster manufacturing activity in Eurozone, which raised concerns of global economic slowdown. Chinese delegates cancelling U.S. farm visits last week weighed on the markets as well, as investors remained focused on the prolonged U.S.-China trade disputes.
The Dow Jones Industrial Average rose 0.1% to close at 26,949.99 on Sep 23. The broader S&P 500 and Nasdaq Composite, however, shed 0.01% and 0.1% respectively. The former closed at 2,991.78 and the latter finished the day at 8,112.46. The fear-gauge CBOE Volatility Index (VIX) declined 4.1% to close at 14.69 on Monday. Finally, advancers outnumbered decliners on the NYSE by a 1.48-to-1 ratio.
Eurozone Manufacturing Activity Contracts
Manufacturing sentiment in the Eurozone declined in September to its worst level in almost seven years. The flash Eurozone manufacturing PMI dropped to an 83-month low of 45.6 last month, slipping from August’s 47.
According to the IHS Markit report, the Flash Eurozone Services PMI dropped to an 8-month low of 52 in September from 53.5 in August. The slowdown in European economy is a result of lower demand for goods and services, which dropped at the fastest rate in more than six years.
In addition, backlogs of work slipped for the ninth time in the last ten months as number of new orders decreased as well. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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