US close: Markets end higher despite data disappointment
US stocks reversed earlier losses to finish in the green on Wednesday, ringing in the new year despite disappointing Chinese manufacturing data undermining sentiment before the opening bell.
The Dow Jones Industrial Average was up 0.08% at 23,346.24, the S&P 500 added 0.13% to 2,510.03, and the Nasdaq 100 improved 0.49% to 6,360.87.
Not long after the open, both the Dow and the S&P were down 0.7%.
“The year has already got off to a disappointing start, with risk aversion weighing heavily across asset classes as the trend that battered confidence in the final month of last year carries over into this,” said Oanda analyst Craig Erlam of the negative start to the session.
“Naturally, it was a rather quiet end to the year with nothing really changing on the fundamental landscape but unfortunately during that time of reflection, investors found no reason to be less pessimistic.”
China’s private Caixin/Markit manufacturing purchasing managers’ index released earlier showed a drop to 49.7 in December from 50.2 in November.
This was the first contraction in 19 months and missed expectations of 50.1.
The figures confirmed a trend seen in the official PMI released on Monday, which slipped to 49.4 in December - its weakest level since early 2016.
That weak Chinese data initially overshadowed news overnight that US President Trump was reaching out to Congress to help end the partial government shutdown.
Trump reportedly invited congressional leaders to a White House briefing on border security on Wednesday.
On the data front, the seasonally-adjusted IHS Markit final US manufacturing purchasing managers’ index printed at 53.8 in December, down from 55.3 the month before.
This marked a 15-month low amid a weaker rise in new business and the joint-softest expansion in output since September 2017.
“Manufacturers reported a weakened pace of expansion at the end of 2018, and grew less upbeat about prospects for 2019,” said Chris Williamson, chief business economist at IHS Markit.
“Output and order books grew at the slowest rates for over a year and optimism about the outlook slumped to its gloomiest for over two years.
“The month rounds of a fourth quarter in which manufacturing production is indicated to have risen at only a modest annualised rate of about 1%.”
In corporate news, electric car maker Tesla tumbled 6.81% as it revealed that it delivered 90,700 vehicles in the fourth quarter, falling short of analysts’ expectations, and announced a $2,000 price cut on its vehicles.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said that for most automotive groups, it would be a very impressive update.
“Almost tripling the number of vehicles you deliver in just one year is no mean feat, and Musk and his team deserve a huge amount of credit.
“But unfortunately for Tesla shareholders, the market has come to expect Herculean achievements, and sometimes that means the bar is just that little bit too high.
“Deliveries have fallen short of what some analysts had expected and the shares are suffering as a result.”
Dow Jones - Risers
Goldman Sachs Group Inc. (GS) $171.99 2.98%
United Technologies Corp. (UTX) $108.30 2.81%
JP Morgan Chase & Co. (JPM) $99.31 2.56%
Exxon Mobil Corp. (XOM) $69.69 2.23%
Dowdupont Inc. (DWDP) $54.54 1.94%
Chevron Corp. (CVX) $110.69 1.72%
Visa Inc. (V) $132.92 1.51%
International Business Machines Corp. (IBM) $115.21 1.39%
Walmart Inc. (WMT) $93.34 1.31%
Nike Inc. (NKE) $74.06 0.98%
Dow Jones - Fallers
Unitedhealth Group Inc. (UNH) $243.49 -1.12%
Cisco Systems Inc. (CSCO) $42.95 -0.88%
Travelers Company Inc. (TRV) $117.37 -0.74%
Walt Disney Co. (DIS) $108.97 -0.64%
Coca-Cola Co. (KO) $46.93 -0.57%
Caterpillar Inc. (CAT) $126.38 -0.53%
Microsoft Corp. (MSFT) $101.12 -0.44%
Walgreens Boots Alliance, Inc. (WBA) $68.04 -0.42%
Verizon Communications Inc. (VZ) $56.02 -0.36%
Procter & Gamble Co. (PG) $91.24 0.11%
S&P 500 - Risers
General Electric Co. (GE) $8.04 6.34%
Bed Bath & Beyond Inc. (BBBY) $11.98 5.83%
Newfield Exploration Co (NFX) $15.15 5.72%
Signet Jewelers Ltd (SIG) $33.07 5.62%
Endo International Plc (ENDP) $7.71 5.62%
Wynn Resorts Ltd. (WYNN) $104.40 5.55%
Navient Corporation (NAVI) $9.29 5.45%
Southwestern Energy Co. (SWN) $3.72 5.38%
EQT Corp. (EQT) $19.90 5.37%
Cabot Oil & Gas Corp. (COG) $23.53 5.23%
S&P 500 - Fallers
Hologic Inc. (HOLX) $38.42 -6.52%
Ventas Inc. (VTR) $56.92 -4.11%
Abbott Laboratories (ABT) $69.50 -3.91%
Essex Prty Trust Inc. (ESS) $236.67 -3.54%
Apartment Investment & Management Co. (AIV) $42.35 -3.51%
CF Industries Holdings Inc. (CF) $42.03 -3.40%
HCP Inc. (HCP) $26.98 -3.40%
Equity Residential (EQR) $63.75 -3.39%
Akamai Technologies Inc. (AKAM) $59.01 -3.39%
Public Storage (PSA) $195.06 -3.39%
Nasdaq 100 - Risers
Wynn Resorts Ltd. (WYNN) $104.40 5.55%
Celgene Corp. (CELG) $66.64 3.98%
Dish Network Corp. (DISH) $25.88 3.64%
Facebook Inc. (FB) $135.68 3.50%
Western Digital Corp. (WDC) $38.26 3.49%
Sirius XM Holdings Inc (SIRI) $5.90 3.33%
Micron Technology Inc. (MU) $32.75 3.21%
eBay Inc. (EBAY) $28.85 2.78%
T-Mobile Us, Inc. (TMUS) $65.26 2.59%
Amazon.Com Inc. (AMZN) $1,539.13 2.47%
Nasdaq 100 - Fallers
Tesla Inc (TSLA) $310.12 -6.81%
Hologic Inc. (HOLX) $38.42 -6.52%
Align Technology Inc. (ALGN) $202.12 -3.49%
Henry Schein Inc. (HSIC) $76.39 -2.71%
Intuitive Surgical Inc. (ISRG) $466.03 -2.69%
NetEase Inc. Ads (NTES) $229.74 -2.39%
Idexx Laboratories Inc. (IDXX) $182.46 -1.91%
Illumina Inc. (ILMN) $294.52 -1.80%
Fiserv Inc. (FISV) $72.21 -1.74%
Fastenal Co. (FAST) $51.41 -1.68%