Wall Street falls on Chicago PMI’s surprising shrinkage
U.S. stocks dropped on Wednesday, after an unexpected contraction in Midwest business activity sounded a dour note at the end of a strong quarter.
The Institute for Supply Management-Chicago’s business barometer unexpectedly fell to 46.1 in September, a reading that indicates a contraction in the regional economy. The Dow Jones U.S. Industrial Index (DJI:^DJUSIN – News) fell 0.9 percent, pulled lower by General Electric (NYSE:GE – News) and United Technologies (NYSE:UTX – News).
The Chicago PMI’s September level was below the consensus estimate for a reading of 52 and down from 50 in August.
“The data captures action from the auto complex and shows that post-‘cash for clunkers’, that environment has softened materially,” said Kevin Caron, market strategist at Stifel Nicolaus in Florham Park, New Jersey.
Originally posted @ Yahoo Finance