3:50 PM New York – Market indexes opened higher but quickly began descending. Market sentiment was weak on the unexpected shrinkage in China trade, ongoing worries in the euro zone and lack of confidence in the lowered earnings outlook in the U.S.
Market indexes opened higher but lost momentum and steadily declined as trading progressed and news flow picked up.
Weaker than expected from China overshadowed trading in commodities pits and investors looked ahead this week on economic data on retail sales and earnings from banks.
On Wall Street trading, Tollbooth Strategy Index gained 0.2% or 18.58 to 10,761.90.
S&P 500 index edged up 0.36 or 0.02% to 2,102.48 and the Nasdaq Composite Index rose 16.63 or 0.3% to 5,012.61.
Crude oil in New York increased 20 cents to $51.84 a barrel and gold slipped $3.90 to $1,200.70 an ounce.
Builders FirstSource, Inc
) surged 55.1% or $3.80 to $10.70 after the building products maker agreed to acquire its rival and privately held professional building materials supplier ProBuild Holdings LLC for $1.63 billion in cash.
The transaction is expected to close in the second-half of this year.
The Habit Restaurants, Inc
) gained 1.8% or 57 cents to $31.57 after restaurant and bar operator priced its 5 million shares offering at $30.96 per share.
JetBlue Airways Corporation
) soared 6.1% or $1.16 to $20.20 after the airline said traffic in March climbed 9.2% to 3,537,850 passengers and load factor jumped 2.4 percentage point to 87.2%.
In London trading, FTSE 100 index fell 0.4% or 27.08 to 7,062.69 and in Frankfurt the DAX index slid 0.3% or 32.40 to 12,342.33.
In Paris, CAC 40 index rose 0.2% or 12.17 to 5,252.63.
Dassault Aviation SA
jumped 2.1% to €1200 after the France-based civil and military aircrafts maker secured an order to supply 36 Rafale aircrafts to defense ministry of India in a substantial deal worth $20 billion.
Henkel AG & Co KGaA
fell 0.4% to €114.70 after the Germany-based specialty detergents maker forecasted organic sales for the fiscal 2015 between 3% and 5% and adjusted return on sales 16%.
The company said adjusted earnings per share for the year to increase about 10%.
Orad Hi Tec Systems Ltd
surged 35.8% to €5.45 after the Israel-based electro-optical, video services provider agreed to buy the U.S.-based Avid Technology Inc for €5.67 per share in cash.
The transaction is expected to close in June.
Shares of Orad Hi-Tec Systems Ltd surged 35.8% to €5.45.
Stocks in Tokyo edged lower after domestic core machinery orders in February declined and China reported worst trade data in nearly a year. Genky Stores, drug retailer, said nine-month net income doubled.
Stocks in Tokyo declined after a weeklong rally on the weaker than expected domestic machinery orders and China reported worst trade data in a year.
Seasonally adjusted core machine orders in February dropped 0.4% to 835.6 billion yen followed by 1.7% decline in January, the Cabinet Office said today.
On a yearly basis, core machine orders climbed 5.9% from 1.9% increase in the previous month.
In February, orders in manufacturing sector increased 0.9% to 355.2 billion yen but non-manufacturing orders slumped 3.6% to 476.9 billion yen.
Total orders, including domestic and exports, decreased 1.4% to 2,474.5 billion yen.
China’s customs agency said exports declined 15% in March and imports fell 12.7% on the rising yuan and slowing domestic demand.
The surprise contraction in China’s trade dragged March month surplus to $3.1 billion, sharply lower than the expected surplus of $45.4 billion.
Rising financing and labor cost eroded China’s manufacturing sector advantage and companies in Vietnam, India and other Asian countries begin to take bite out of various industries.