Stocks Sell Off On Growth Fears
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Stocks started lower today and haven't looked back following a host of negative data that is painting a picture of a slowing world economy.
At the noon hour, the Dow is down 150, the Nasdaq is down 40 and the S&P 500 is down 18.
Today's action shows a decoupling between the market and the price of crude. Lately, as crude moved up the market moved down, and vice versa. Today, with crude down $3, the market could care less.
Below is a quick run-down of the data that is impacting U.S. stocks:
One bright spot today is Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR), which is up over 30 percent on a single-cup coffee and tea deal with Starbucks (Nasdaq: SBUX). SBUX is up 7 percent on the news.
At the noon hour, the Dow is down 150, the Nasdaq is down 40 and the S&P 500 is down 18.
Today's action shows a decoupling between the market and the price of crude. Lately, as crude moved up the market moved down, and vice versa. Today, with crude down $3, the market could care less.
Below is a quick run-down of the data that is impacting U.S. stocks:
- China's reported a record trade deficit of $7.3 billion in February. Exports slowed during the Lunar New Year, while imports surged in the country with the rising price of raw materials.
- U.S. trade deficit during the first month of the year increased 15 percent to $46.3 billion, up from $40.3 billion in December. Economists were looking for a lower trade deficit of $41.5 billion.
- The U.S. Labor Department reported on Thursday that applications for first-time unemployment benefits increased 26,000 to 397,000 in the week ended March 5. Economists had forecast that filings would increase to 376,000.
- Re-igniting Euro debt fears, Moody's cut government debt in Spain to Aa2 with a negative outlook from a prior rating of Aa1. The costs of bank restructuring and slow economic growth could lead to further downgrades according to Moody's, which said that the improvements to the Spanish economy could be limited.
- Stronger U.S. dollar.
- While crude is lower today, it is still above the $100 level. Crude above this level for an extended period of time could weigh on the U.S. consumer.
One bright spot today is Green Mountain Coffee Roasters Inc. (Nasdaq: GMCR), which is up over 30 percent on a single-cup coffee and tea deal with Starbucks (Nasdaq: SBUX). SBUX is up 7 percent on the news.
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