April 1, 2023

Major Indexes Decline as Growth in Manufacturing Slows

The stock market got off to a slow start in April, edging lower on Monday after a week when the Standard Poor’s 500-stock index eclipsed its nominal high.

The main catalyst was slowing growth in manufacturing last month. The decline in the Institute for Supply Management’s benchmark manufacturing index for March was worse than economists had forecast. Stocks started falling shortly after the report was released at 10 a.m. and stayed lower the rest of the day.

The Dow Jones industrial average closed down 5.69 points, or 0.04 percent, at 14,572.85. The S. P. 500 dropped 7.02 points, or 0.5 percent, to 1,562.17.

Industrial companies fell 1 percent, the most in the S. P. 500. Caterpillar, which makes construction and mining equipment, declined $1.33, or 1.5 percent, to $85.64, and 3M, which makes Post-it notes, industrial products and construction materials, fell 66 cents, or 0.6 percent, to $105.65.

Investors have raised their expectations for the American economy as the market has climbed this year, said Joe Kinahan, chief derivatives strategist at TD Ameritrade. The Dow is up 11.2 percent in 2013; the S. P., 9.5 percent.

“The numbers have to be outstanding in order to drive the market higher,” Mr. Kinahan said. “It’s a different mind-set when we’re at these levels.”

The S. P. 500 ended the first quarter at a high of 1,569.19, surpassing its previous record close of 1,565.15 on Oct. 9, 2007. The index has recaptured all of its losses from the financial crisis and recession. The Dow broke its high, also set in 2007, on March 5.

The market has risen this year because of optimism that housing is recovering and that employers are starting to hire again. Strong company earnings and continuing stimulus from the Federal Reserve have also increased demand for stocks.

Small stocks fared worse than large ones Monday. The Russell 2000 index, a benchmark of small-company stocks, fell 1.3 percent to 938.78, paring its gain for the year to 10.5 percent. It was the index’s biggest decline in more than a month. The Nasdaq composite index fell 28.35 points, or 0.9 percent, to 3,239.17.

April is historically the second-strongest month for stocks, behind December, Deutsche Bank analysts said in a report released Monday. The S. P. 500 has gained an average of 1.4 percent in April, based on returns since 1960.

The last meaningful setback for stocks started before the elections last November. The market slid 6 percent from Oct. 1 through Nov. 15 before the vote and immediately afterward over concerns that Congress and the administration would be unable to enact measures to continue economic growth.

Evidence that growth was continuing, despite political discord in Washington, has kept stocks on an upward trajectory since then, leaving investors waiting for dips to add to their holdings.

”I’d love to have some sort of a pullback here because I’d think it’s an opportunity,” said Scott Wren, an equity strategist at Wells Fargo Advisors. “But it doesn’t feel like we’re going to have one in the near term.”

Among the stocks on the move, Tesla Motors, the electric car company, rose $6.04, or 16 percent, to $43.93 after it said Sunday night that first-quarter sales have exceeded 4,750 Model S sedans, above its previous forecast of 4,500.

DFC Global, a finance company that lends to consumers who lack bank accounts, fell $3.60, or 22 percent, to $13.04 after slashing its earnings estimate for its fiscal year because of loan defaults in its business in Britain.

American Greetings rose $1.95, or 12 percent, to $18.05 after the company agreed to be taken private for about $602 million by a group led by some of its top executives.

In the bond market, interest rates eased slightly. The price of the Treasury’s 10-year note rose
5/32, to 101 16/32, while its yield slipped to 1.84 percent, from 1.85 percent late Thursday. (The bond and stock markets were closed Friday in observance of Good Friday.)

This article has been revised to reflect the following correction:

Correction: April 1, 2013

An earlier version of this article, and its capsule summary, misstated the day when the Standard Poor’s 500-share index reached a new closing high. The high was reached last Thursday, not Friday.

Article source: http://www.nytimes.com/2013/04/02/business/economy/daily-stock-market-activity.html?partner=rss&emc=rss

DealBook: TD Ameritrade and Scottrade Resume Sending Orders to Knight

Two major brokerage firms said on Friday afternoon that they had resumed sending client orders to the Knight Capital Group, in a potential boost of confidence for the beleaguered trading firm.

TD Ameritrade and Scottrade said separately that they were again routing trades to Knight, after having pulled their business from the firm on Thursday. Many of Wall Street’s biggest brokerage firms had withdrawn, unsure of the firm’s state after it disclosed a $440 million loss tied to a trading software glitch.

“After considerable review and discussion, we are resuming our order routing relationship with Knight,” Fred Tomczyk, TD Ameritrade’s chief executive, said in a statement. “Our priority has always been the interests of our clients, their trades and their assets. Knight is one of many order routing destinations for us and has long been a good and trusted partner.”

Whitney Ellis, a spokesman for Scottrade, said his firm had begun sending orders to Knight around 12:35 p.m. on Friday.

It is not clear whether other clients have returned as well. Earlier on Friday, representatives for Vanguard and E*Trade said that they had had not.

On Thursday, Knight had asked some of its clients to stop sending it orders, while it retested its systems. But on Friday, firm executives called other trading shops, assuring them that it had locked up financing to operate throughout the day and asking them to resume routing client orders.

Timeline: Trading Errors

The firm has contacted a number of potential buyers for at least some of its businesses, as it races to stabilize its finances through the weekend. Knight and its advisers have been soliciting potential suitors for various parts of its businesses, including rivals like Citadel and Virtu Financial, according to people briefed on the matter.

Shares in Knight were up by 62 percent as of midafternoon trading, at $4.15. They had plummeted 75 percent between Wednesday, when its trading software broke down, and Thursday, when it disclosed the $440 million loss.

Article source: http://dealbook.nytimes.com/2012/08/03/td-ameritrade-and-scottrade-resume-sending-orders-to-knight/?partner=rss&emc=rss

Economic Reports for the Week of Jan. 16

CORPORATE EARNINGS Citigroup, TD Ameritrade and Wells Fargo (Tuesday); Bank of New York Mellon, Goldman Sachs, Charles Schwab, State Street, U.S. Bancorp and eBay (Wednesday); Bank of America, BlackRock, Morgan Stanley, Southwest Airlines, UnitedHealth Group, American Express, Google, I.B.M., Intel and Microsoft (Thursday); and General Electric (Friday).

IN THE UNITED STATES Financial markets, government offices and many businesses will be closed in observance of Martin Luther King Jr.’s Birthday (Monday).

Two House Financial Services subcommittees will conduct a joint hearing about the effect of the Volcker Rule on markets, businesses and investors (Wednesday).

IN EUROPE Chancellor Angela Merkel of Germany and President Nicolas Sarkozy of France will meet in Rome with Prime Minister Mario Monti of Italy to discuss the European debt crisis (Friday).

Banks in the European Union face a deadline to submit plans to meet the European Banking Authority’s new capital requirements (Friday).

Article source: http://feeds.nytimes.com/click.phdo?i=1ef43495d39325704bf97659f11cde13