This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

All Is Not So Well: Stocks Slump on China Outlook, McDonald's Forecast

Stocks in this article: IXIC ^DJI ^GSPC

NEW YORK (TheStreet) -- Markets sold-off sharply on Thursday as signs of a slowdown in China, the world's second-largest economy, coupled with a mediocre global forecast from McDonald's (MCD) offset data suggesting the U.S. labor market was generally improving.

  • The S&P 500  finished 0.89% lower at 1,828.46 while the Dow Jones Industrial Average shed 1.07% to 16,197.35. The Nasdaq was off 0.57% to 4,218.87.
  • Chinese manufacturing activity shrank in January for the first time in six months, according to the flash Markit/HSBC Purchasing Managers' Index. The preliminary report showed a decline to 49.6 from the final December figure of 50.5. "The credit crunch in the nation has compromised with growth objectives, triggering worldwide concerns," said Singapore-based Phillip Futures investment analyst Chee Tat in a note.
  • McDonald's stock was 0.46% higher even after posting fourth-quarter revenue and December same-store sales that came in a tad below estimates. The company expects January global comparable sales to be relatively flat. Quarterly earnings topped expectations by a penny.
  • American Eagle Outfitters  (AEO) finished 7.82% lower after announcing the departure of its CEO. Netflix (NFLX) closed 16.5% higher after reporting better than expected fourth-quarter earnings and 33.42 million streaming subscribers for the quarter.
  • Initial jobless claims for the week of January 18 rose 1,000 to an as-expected 326,000. However, the four-week moving average fell by 3,750.
  • The January Markit "flash" PMI manufacturing index was 53.7 - both the consensus forecast and the final December reading (both 55). The decline was broad based, as the output, new orders and employment indices all moved lower. 
  • The November Federal Housing Finance Agency's housing price index showed house prices rose 0.1% in November from October, indicating the real estate recovery may be losing strength. Prices climbed 7.6% from a year earlier. 
  • The Hong Kong Hang Seng closed off 1.51% while the Shanghai Composite fell 0.47%. The DAX finished 0.92% lower and the U.K. FTSE was 0.78% lower, all dragged down by the poor China data.

--- Written by Jane Searle in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs