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Wall Street Seeks to Snap Back from Late Sell-Off

Strategic Insights

— 1 min read

Wall Street's efforts to regain momentum in the new year were met with caution and uncertainty on Monday, as bond prices weakened and stocks opened narrowly mixed. Despite positive economic news, including a surge in the manufacturing sector, investors are still grappling with the impact of "end-of-the-year pressures" and navigating year-ahead forecasts. The Dow Jones industrial average and other key indices were down slightly, with the Dow Jones shedding 21.79 points on Friday and closing out 1993 on a sour note.

Key Takeaways:

  • The Dow Jones industrial average was down 0.28 point to 3753.81 at 11 a.m. EST on Monday, after dropping 21.79 points on Friday.
  • Bond prices were weak, with the 30-year Treasury bond down 17/32 to 98 6/32, and its yield rising to 6.39 percent.
  • The National Association of Purchasing Management said the nation's manufacturing sector expanded in December for the third consecutive month, with its NAPM index jumping to 57.9 percent.
  • Most economists had expected the NAPM index to reach 57.4 percent in December, with a reading above 50 percent indicating economic expansion.
  • Analysts attributed the stock market's cautiousness to "end-of-the-year pressures" and the need to navigate year-ahead forecasts.
  • The New York Stock Exchange composite index was down 0.60 to 258.48, while Standard & Poor's 500-stock index was down 0.59 to 465.86.
  • Declines topped advances 1,180-711 among the 2,445 issues crossing the NYSE tape, with volume at about 77,660,000 shares.

Statistics:

  • The Dow Jones industrial average dropped 21.79 points on Friday.
  • The 30-year Treasury bond was down 17/32 to 98 6/32, with its yield rising to 6.39 percent.
  • The National Association of Purchasing Management's NAPM index rose to 57.9 percent in December.
  • Volume at the New York Stock Exchange was about 77,660,000 shares.
  • Declines topped advances 1,180-711 among NYSE issues.

Sources:

  • "Wall Street opens narrowly mixed", [no date], The Bulletin of the American Stock Exchange (citing Investment strategy director Don R. Hays, Wheat First Butcher & Singer, Richmond, VA)
  • "NAPM index rises to 57.9% in Dec", [no date], The Bureau of National Affairs
  • "NYSE issues volume, [no date], New York Stock Exchange
  • "Dow Jones industrial average, [no date], Dow Jones & Company

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