Dow falls 200 points Tuesday, Greece plan rejected
Wall Street closed with losses Tuesday as the markets considered economic data and the end of the first quarter. Economists say that despite some good movement on the US economy there are still challenges. The Dow fell more than 200 points, almost erasing Monday’s gains. Wednesday has seen some good news for China with official PMI data showing a slight growth in manufacturing, after HSBC’s flash index earlier in the week showed weaker output. There is still expectation of more stimulus in the country and Shanghai closed higher; the only major Asian market to do so. In Europe, Greece’s plans for reform were rejected but some better data on factory output in the Eurozone has pushed the markets higher.
US stock futures are trending lower. Oil is trending lower (Brent $54.86, WTI $47.17 at 5.25am ET). Gold is trending lower.
Motor vehicle sales
MBA mortgage applications at 7.00am ET
ADP employment report at 8.15am ET
PMI manufacturing index at 9.45am ET
ISM manufacturing index at 10.00am ET
Construction spending at 10.00am ET
EIA petroleum status report at 10.30am ET
Central Energy, Liberty Bell and Worlds Inc. are among the companies reporting results today.
Iran nuclear talks over-run but could see sharp oil drop
Talks between major world powers and Iran over the country’s nuclear ambitions have now passed their deadline. However Russia says that discussions have been progressing well with some of the key issues already agreed. There are hopes that a settlement will be reached today creating an interim solution that will lead to a firmer agreement in June. That could all lead to Iran being able to ramp up exports of its oil and experts say that could mean an instant $5 being wiped off the price of Brent. That would be a short-term impact but there is still talk of a $30 barrel if Iran is allowed to add to the supply glut.
GoDaddy IPO opens today; priced higher than expected
The public shares in web hosting firm GoDaddy which are expected to begin trading on the NYSE today have been priced at $20 rather than the $17-19 range that was expected. That values the company at $4.5 billion including debt. The firm’s customer base and revenues have been rising steadily in recent years although the web hosting and domains business is highly competitive with big names such as Microsoft and Amazon entering the space recently.
US income gap affects spending on the prom
A new report shows a widening gap in the richest and poorest families in America in terms of spending on high school proms. Strangely the figures may be the opposite to what you might expect as lower-income families are actually going to spend around 5 per cent more than those on higher incomes. The study by Visa found that households with an income below $25,000 are intending to splash out $1,393 on average while those earning above $50,000 will be more prudent with a $799 spend. The figures include cost of tickets, clothes, limo rental, photographs and parties.