The Motor City Meltdown goes forward. For now. The legal wrangling is probably going to last for years. We sure are going to learn a lot about municipal creditor hierarchy. And today in 1701 Antoine Laumet de La Mothe, sieur de Cadillac founded Fort Pontchartrain du Détroit, at what is now known as the City of Detroit. But I digress.
The stock market and Treasuries fell as housing and manufacturing data fueled speculation the Federal Reserve may reduce its asset-buying this year as investors weighed earnings reports.
The S&P 500 Index fell 0.4 percent to 1,685.95 at 4 p.m. in New York, after climbing to within 2 points of the 1,700 level. The Dow Jones Index dropped 25 points to 15542. The yield on 10-year Treasuries jumped eight basis points to 2.58 percent. The Stoxx Europe 600 Index rallied 0.6 percent to an almost eight-week high. Crude Oil tumbled over 1 percent, Nat Gas down 1 over 1 percent and gold lost 1.1 percent.
New U.S. home sales rose more than forecast in June to the highest level in five years. Manufacturing indexes based on surveys of purchasing managers rose in the U.S. and Germany this month, London-based Markit Economics said today, while preliminary data showed China’s manufacturing contracted more than economists estimated.
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury