Manufacturing Data Hurts the Dow

As of 12:55 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is down a mere 15 points, or 0.1%. The other major indexes are faring worse so far: The S&P 500 has dropped 0.45% while the NASDAQ is down 0.77%.

A widely followed data point released today is likely causing the markets to fall. The Institute for Supply Management's factory index was released this morning, and it fell from 54.2 last month to a 51.3 in March. Any figure greater than 50 represents growth, but a higher number would indicate growth at a faster pace.

Today's top Dow downers
The poor ISM numbers are likely hurting a few of the Dow's losers today. Shares of Alcoa (NYSE: AA  ) are down 1.9%, while Caterpillar (NYSE: CAT  ) has lost 1.5%, and United Technologies (NYSE: UTX  ) is even down 0.4%. Caterpillar's decline should not be a shock to anyone who saw its February sales numbers, which were disappointing, to say the least. And when sales are lower, we should expect lower production as demand flags.

As for Alcoa, the company has struggled for more than a year now as aluminum prices remain at a depressed level due to oversupply in China. The one possible good data point for Alcoa today was the gauge of U.S. manufacturer stockpiles, which also continues to fall, moving from 47.5 to 46.5. Anything below 50 indicates that stockpiles are shrinking.

Anytime a report like this comes out, a company like United Technologies is going to take a slight hit, as it is today. This report gives investors a heads-up that big manufacturers aren't knocking it out of the park, likely resulting in lower revenue and profit during the quarter.

Outside of manufacturing, shares of Intel (NASDAQ: INTC  ) are down 2.2% after the stock was downgraded by JMP Securities' Alex Guana. The analyst believes Intel's full-year EPS will be lower than the $2.15 he had previously expected. A new target of $1.85 per share was set for this year, and he even lowered his EPS estimate for next year from $2.25 to a measly $1.70. Guana believes there may be a delay with delivery of some of Intel's' new microprocessors, which would ultimately hit earnings.

When it comes to dominating markets, it doesn't get much better than Intel's position in the PC microprocessor arena. However, Intel must find new avenues for growth. In this premium research report on Intel, our analyst runs through all of the key topics investors should understand about the chip giant. Click here now to learn more.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2339372, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:31:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:00 PM
AA $9.68 Down -0.08 -0.82%
Alcoa CAPS Rating: ***
CAT $82.37 Down -0.07 -0.08%
Caterpillar CAPS Rating: ***
INTC $36.65 Down -0.54 -1.45%
Intel CAPS Rating: ****
UTX $102.23 Down -0.33 -0.32%
United Technologie… CAPS Rating: ****
^DJI $18094.83 Down -166.62 -0.91%