Because the sun has to shine eventually...
Stocks flat amid US and China data
The Dow Jones Industrial Average closed down 10 points on Thursday at 13,165
US stocks dawdled between small gains and losses with investors unable to decide what to focus on: incremental encouraging news about the US economy or incremental negative news about China and elsewhere.
The Dow Jones Industrial Average fell 10.45 points - just 0.08%. It has barely budged for most of the week, rising between Monday and Wednesday but only by small fractions of a percent. The relative quiet is partly due to a lack of major developments in the European debt crisis or decisive news on the US economy. Another reason is simply because traders like to clear out for holidays in August.
"I think there are more active managers in the Hamptons than there are in Manhattan," said Hugh Johnson, chairman and chief investment officer of Hugh Johnson Advisers in Albany, New York.
David Abuaf, chief investment officer of Hefty Wealth Partners, was not in the Hamptons: he was in his office in Auburn, Indiana. And he, also, was watching the markets languish.
"There has been nothing systemically consistent, either good news or bad news," Mr Abuaf said. "So a lot of professional asset managers are saying: 'I don't know where I want to put my money, but if I don't invest now then my clients are going to start demanding their money back.'"
The Dow closed at 13,165.19. It was down about 51 points at its lowest and up 23 at its highest, meaning it had a spread of about 74 points throughout the day. The average spread for the year so far is much higher, about 134 points, according to Dow Jones Indexes.
Changes in the other indexes were equally underwhelming. The Standard & Poor's 500 was virtually flat, rising 0.58 points to 1,402.80. The Nasdaq edged up 7.39 to 3,018.64.
The trendless market was a product of conflicting news about the world economy.
In the US, the government reported that the trade deficit fell to the lowest level in 18 months, which is generally considered good for the economy. In June, the US enjoyed lower prices for the oil it brought in and higher sales of the cars, pharmaceuticals and industrial machinery it shipped out.
But the report also brought a troubling sign that China, which grew even through the global recession and afterwards, cannot prop up world markets forever. US exports to China dropped more than 4%. Separately, China reported that growth slowed in auto sales and factory output. Another emerging-market giant, India, reported lower industrial output for the third time in four months.
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