Wall Street wrap for 01 July 2010

Wall Street wrap for 01 July 2010

There was more bad economic news for US markets with data on manufacturing, home sales, and jobs trailing that of estimates. Factories received fewer orders and overseas demand also slowed in June, which led to manufacturing in the country expanding at its slowest pace so far this year.

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The Institute for Supply Management’s manufacturing gauge fell from 59.7 in May to 56.2 in June. Any figure over 50 indicates an expansion. As for home sales, an index of pending home resales dropped 30% in June compared to the previous month - that’s more than twice as much forecasted.

This was the biggest drop on record since 2001.The government said the number of Americans filing new claims for unemployment increased to 472,000 from 459,000 the week before. The official jobs report is due out on Friday.

The S&P 500, the Dow, and the Nasdaq were all down again for the day. The S&P 500 has taken a dive of 16% since its year high on 23 April and with its valuation at about 15 times the reported earnings of its companies, it’s close to its cheapest level in a year.

In commodities, US light crude oil fell $2.72 to $72.70 and gold fell $47 to about $1,198 an ounce. Auto makers announced June figures - Ford’s monthly sales climbed 15% compared to the previous year but were lower 13% from May, which disappointed analysts. But the stock still ended higher for the day. And General Motors also announced a climb of 36% from a year ago but also dipped from May by 12.5% which some economists say indicates a weakening economy.