Shares are mixed after China’s data failure raises concerns

The shares rose on Wednesday after falling a day earlier, with an increase in oil prices that helped increase risk in the markets. The increase came higher after a decline earlier in the session as new lukewarm economic data from China raised concerns about the pace of global growth.

The S&P 500 received intraday, led by the energy and industrial sectors. The Dow also jumped, steadily after the index dropped nearly 300 points on Tuesday, resuming declines and falling for the sixth time in seven sessions. US crude oil futures prices jumped to their highest level since early August new data showed that crude oil inventories decreased last week in the middle of production disruptions after Hurricane Ida.

Key economic data from China pointed to a much stronger-than-expected slowdown in growth last month, indicating that the recovery in the world’s second-largest economy lost steam at a faster pace than expected. And elsewhere, shares of Macau-based casino operators, such as Wynn Resorts (WYNN) and Las Vegas Sands (I AM AGAINST), slipped after the government announced plans to increase supervision of the gaming industry.

China’s retail sales increased only 2.5% in August compared to last year, well below the expected 7.0%, according to Bloomberg’s Consensus data, and fell sharply from 8.5% in July. Industrial production also declined for the manufacturing-heavy country, with an increase of 5.3% compared to 6.4% in July. The disappointing printouts sent shares in Chinese stocks such as Alibaba (BABY), Pinduoduo (PDD) and JD.com (JD) lower.

The latest data for the US has also pointed to declining growth and some cooling in the price pressure.

The Labor Department’s consumer price index (CPI), excluding volatile food and energy prices, increased by only 0.1% in August compared to July, making it the slowest monthly gain since February. The core CPI also rose less than expected last year, the latest report released on Tuesday showed.

But the major contributors to the downturn were falling prices for things like airline tickets and hotel room prices, which were likely to be pushed down only temporarily due to renewed fears about the Delta variant. Still, the slower-than-expected rise in consumer prices helps reaffirm some Federal Reserve decision-makers that inflation will eventually prove to be transient, leaving more room for officials to keep current monetary policy in place longer, some experts say.

“We will probably not get the answer to whether it is transient or not until 2022 – that’s when the base effects start to wash out and all the distortions start to resolve themselves,” Sameer Samana, Wells Fargo Investment Institute senior global market strategist, said Yahoo Finance on Tuesday.

“What the figure tells us today is that the Fed probably has a little more leeway,” he added. “If they do not want to do something at the meeting next week, given the weaker than expected [August] The payroll, the inflation figure today, also removes the pressure from them to do something next week. ”

Nevertheless, investors continue to assess a range of risks to the economic outlook and equities outlook, with price pressure as a mere concern. And with US equities still relatively close to all-time highs and the S&P 500 still up more than 18% so far this year, tremors over the basic background have only intensified.

“I think we’ll see a bit of an air pocket in concern from some of the companies going into the end of the year,” Chris Retzler, Needham Small Cap Growth Fund Portfolio Manager, told Yahoo Finance. Securely extended. Semiconductors are a problem in almost every industry, and labor costs continue to be a problem. But if I look at a year, I would think those problems are starting to subside, and that’s good for long-term investors. ”

10:08 AM ET: Oil prices jump, Brent oil tops $ 75 a barrel for the first time in over a month

The US and Brent crude oil futures jumped on Wednesday as supply issues, energy prices drove higher and at least temporarily offset concerns about the Delta variant’s impact on mobility.

West Texas’ intermediate crude oil futures jumped 3% to trade near $ 73 a barrel, extending a new run after Hurricane Ida affected domestic production and supply. Brent oil, the global standard, jumped by almost the same margin to the top $ 75 a barrel during the session, reaching its highest level since early August.

9:52 ET: US manufacturing production slowed more than expected in August

USA manufacturing production declined sharply in august after publishing a strong monthly gain in July, reflecting the effects of Hurricane Ida and ongoing disruptions in the supply chain.

The latest Federal Reserve data showed that manufacturing production rose by just 0.2% in August, or half of the expected profit, based on Bloomberg consensus data. Production had risen by 1.6% in July.

A broader measures of industrial production also decreased in August, Fed data also showed. Industrial production increased by 0.4% in August compared with July, which slowed from the previous month’s increase by 0.8%.

09:31 ET: The shares open higher

Here the markets were traded on Wednesday morning just after opening time:

  • S&P 500 (^ GSPC): +6.84 points (+ 0.15%) to 4449.89

  • Dow (^ DJI): -4.97 points (-0.01%) to 34,572.60

  • Nasdaq (^ IXIC): +38.81 points (+ 0.24%) to 15,073.73

  • Raw (CL = F): + $ 1.82 (+ 2.58%) to $ 72.28 a barrel

  • Gold (GC = F): – $ 8.70 (-0.48%) to $ 1,798.40 per ounce

  • 10-year Treasury (^ TNX): +0.3 bps to give 1,282%

08:45 ET: The Empire State Manufacturing Index rose unexpectedly in September when order intake was raised

The Empire State Manufacturing Index made a surprising leap in September when activity in the New York region’s commodity-producing sector improved more than expected.

The main business relationship index jumped to 34.3 in September from 18.3 in August. Consensus economists were looking for the index to fall to 17.9, according to Bloomberg Consensus data.

The strong pressure came as new orders, deliveries and unfilled orders improved markedly and the labor market index also strengthened. Nevertheless, delivery times for index tracking rose to record highs, indicating that supply chain disruptions remained the impediment to growth while demand was high. Overall, assessments of future and current conditions held strong, with 46% of respondents saying that conditions improved during the month, compared with only 12% that conditions had deteriorated.

7:26 ET Wednesday: Futures trading in mixed mix

The markets were traded here from Wednesday morning:

  • S&P 500 futures (ES = F): +5 points (+ 0.11%) at 4449.50

  • Dow futures (YM = F): +4 points (+ 0.01%) to 34,587.00

  • Nasdaq futures (NQ = F): +31.5 points (+ 0.2%) to 15418.50

  • Raw (CL = F): + $ 0.97 (+ 1.38%) to $ 71.43 a barrel

  • Gold (GC = F): $ -3.20 (-0.18%) to $ 1,803.90 per ounce

  • 10-year Treasury (^ TNX): -0.9 bps to give 1.27%

18:10 ONE TUESDAY: Stock futures go up

Here were the main movements in the markets as of Tuesday night:

  • S&P 500 futures (ES = F): +4 points (+ 0.09%) at 4448.50

  • Dow futures (YM = F): +21 points (+ 0.06%) to 34,604.00

  • Nasdaq futures (NQ = F): +15 points (+ 0.1%) to 15,402.00

Traders work on the trading floor of the New York Stock Exchange in New York, USA, August 19, 2021. The S&P 500 Index closed at 4,405.80 points, up 5.53 points or 0.13 percent.  The Dow Jones Industrial Average closed at 34,894.12 points, down 66.57 points or 0.19 percent.  The Nasdaq Composite Index closed at 14,541.79 points, up 15.88 points or 0.11 percent.  (Photo by Wang Ying / Xinhua via Getty Images)

Traders work on the trading floor of the New York Stock Exchange in New York, USA, August 19, 2021. The S&P 500 Index closed at 4,405.80 points, up 5.53 points or 0.13 percent. The Dow Jones Industrial Average closed at 34,894.12 points, down 66.57 points or 0.19 percent. The Nasdaq Composite Index closed at 14,541.79 points, up 15.88 points or 0.11 percent. (Photo by Wang Ying / Xinhua via Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

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