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S&P 500 Struggles After IMF Lowers US Growth Forecast


Today's financial recap and tomorrow's financial outlook.

In its first day of trading since entering into bear market territory, the Nikkei 225 (INDEXNIKKEI:NI225) recovered nearly 2%. The EU harmonized index of consumer prices came in at 0.1% month over month as was expected. European indices were slightly higher on the day.

The US producer price index came in slightly better than expected, topping the expected 1.7% year-over-year growth and coming in at 1.4%. Industrial production and manufacturing fell short of estimates. Production saw no month-over-month growth and manufacturing only grew by 0.1%. US consumer sentiment also fell short of expectations, with a reading of just 82.7 vs. expectations of 84.5. Markets were in the green during early trading but quickly reversed when the IMF released economic forecast revisions. The International Monetary Fund cut the US 2014 growth estimate from 3% to 2.7%. Additionally, they do not see the employment situation improving until the end of 2013 or early 2014. After the announcement the markets went red and remained down for the rest of the day. The S&P 500 (INDEXSP:.INX) finished the day down 0.4%.

The 10-year yield dropped 4 bps on the day to 2.13%, its lowest level of the week. Gold finished the day up 0.7% at $1,388 an oz. Crude jumped 1.22% on the day, closing at $97.90 a barrel. Crude hit a new nine-month high in today's session.

Shares of Groupon Inc (NYSE:GRPN) jumped more than 10% on the day after Deutsche Bank AG (NYSE:DB) analysts Ross Sandler and Lloyd upgraded the stock. Shares are currently trading at a new yearly high.

Monday's Financial Outlook

The Reserve Bank of India will be making an announcement regarding its monetary policy at 1:30 a.m. EDT on Monday. European Union merchandise trade will be released at 5:00 a.m. EDT.

The US empire state manufacturing survey will be released at 8:30 a.m. EDT. The US housing market index will be released later Monday morning at 10:00 a.m. EDT.

There will be no major earnings scheduled in the US on Monday.

Twitter: @Minyanville

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