The Joplin Globe, Joplin, MO


September 10, 2012

A weak open on Wall Street as China stumbles

NEW YORK — Stocks opened slightly lower on Wall Street as troubling economic news from China overshadows hopes of more stimulus from the Federal Reserve.

After the first hour of trading Monday the Dow Jones industrial average was down seven points at 13,299. The Standard & Poor’s 500 slipped half a point to 1,437 and the Nasdaq composite fell nine points to 3,125.

The stumble marks a pause in a rally last week that took the Dow and the S&P 500 to their highest levels in more than four years.

Stock markets rose around the world last week after the European Central Bank announced a long-anticipated plan to support struggling countries in the European Union. Investors are also more hopeful that the Federal Reserve will act this week to support the U.S. economy.

There were several pieces of discouraging news out of China, giving investors more reason to worry that one of the most important engines of the global economy was sputtering. Auto sales growth slowed to 3.7 percent in August, and imports shrank unexpectedly. Factory output also slid to three-year low in August, suggesting that aggressive action in Beijing has yet to gain traction. The Chinese president warned growth could slow further.

The monetary policymaking body of the Federal Reserve meets on Wednesday and Thursday after a surprisingly weak report on U.S. jobs last Friday. Many anticipate a third round of bond purchases or other support for the financial system.

Later on Monday, the Fed releases its consumer credit report. Economists expect the Fed to report that Americans increased their borrowing in July.

Among stocks making big moves:

— Alpha Natural Resources rose 53 cents to $7.43 and Cliffs Natural Resources rose $1.89 to $41.80, the biggest gains in the S&P 500. Metals and mining company stocks shot up on hopes of more buyouts in the sector after the British commodities trading firm Glencore increased its buyout offer for Xstrata, an Anglo-Swiss mining company.

— American International Group fell after the U.S. government said Sunday it was selling shares in the insurer that would decrease its holdings below a majority stake for the first time since the bailout of AIG in 2008 at the height of the financial crisis. AIG’s stock lost 73 cents to $33.26.

— Chesapeake Energy lost over 3 percent, the biggest loss in the S&P, following oil prices lower. The stock was off 69 cents, to $19.65.


Text Only

Missouri Republicans are considering a new approach to prevent federal agents from enforcing laws the state considers to be infringements on gun rights: barring them from future careers in state law enforcement agencies. Do you think this proposal has merit?

     View Results
Twitter Updates
Follow us on twitter
NDN Video
Raw: More Than 100,000 Gather for Easter Sunday Raw: Greeks Celebrate Easter With "Rocket War" Police Question Captain, Crew on Ferry Disaster Raw: Orthodox Christians Observe Easter Rite Ceremony Marks 19th Anniversary of OKC Bombing Raw: Four French Journalists Freed From Syria Raw: Massive 7.2 Earthquake Rocks Mexico Captain of Sunken SKorean Ferry Arrested Raw: Fire Destroys 3 N.J. Beachfront Homes Raw: Pope Presides Over Good Friday Mass Raw: Space X Launches to Space Station Superheroes Descend on Capitol Mall Man Charged in Kansas City Highway Shootings Obama Awards Navy Football Trophy Anti-semitic Leaflets Posted in Eastern Ukraine Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Deadly Avalanche Sweeps Slopes of Mount Everest