The KUIK Market Update for Monday, February 29:
Markets are mixed.
Index Direction Change Units Time
Dow Up 8 points 16,648 6:00 PM
S&P500 Up 0.1% percent 1,951
Nasdaq Composite Up 0.3% percent 4,605
30 Year Treasury Down (3) Basis Points 2.61 Annual Yield
The Shanghai Composite Index closed 2.9% lower at 2687.98 and the Shenzhen Composite Index finished down 5.4%. The losses came after the People’s Bank of China guided the Chinese yuan lower against the doller, hitting its lowest level in the onshore market since Feb. 5. The yuanhas fallen nearly 1% against the dollar since mid-February. The central bank also cut the reserve-ratio requirement for banks by 0.5%. Analysts estimate that will free up about $108 billion for banks to make loans.
MNI Indicators reports the Chicago Purchasing Managers Index fell 8 points to 47.6, down from February’s 55.6, the highest reading in a year. Four of five components declined, led drops in production and new orders. The employment index is at its lowest reading since 2009 and inventories contracted for the fourth straight month.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/china-stocks-drop-sharply-as-yuan-dips-to-3-week-low-2016-02-28
http://www.marketwatch.com/story/chicago-pmi-signals-contraction-of-factory-activity-in-february-2016-02-29?link=MW_latest_news
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