Seeking Alpha

Treasurys gain, stocks slump after big ISM miss

  • Gotta be the weather. The January ISM misses estimates by a mile, slumping to 51.3 vs. 56 expected and 57 in December. It's the lowest print since May 2013.
  • New Orders dove to 51.2 from 64.4, Production 54.8 from 61.7, Employment 52.3 from 55.8, Backlogs 48 from 51.5. On the rise are Prices to 60.5 from 53.5, with natural gas among those noted as headed higher.
  • Among the comments: "Poor weather impacted outbound and inbound shipments," "Good finish to 2013, but slow start to 2014, mostly attributed to weather," "We have experienced many late deliveries during the past week due to the weather shutting down truck lines."
  • Full report
  • Weather or not, the economic slowdown meme is on center stage. In the red before the report, Treasury prices reverse higher, TLT +0.4%, TBT -1%. The 10-year Treasury yield is now lower by two basis points to 2.63%.
  • Treasury ETFs: TBT, TLT, TMV, IEF, TBF, PST, EDV, TTT, TMF, ZROZ, SBND, TLH, IEI, DLBS, TYO, DTYS, VGLT, UST, UBT, TBX, TLO, VGIT, GSY, DTYL, LBND, SCHR, TYD, TENZ, ITE, TYBS, FIVZ, TBZ, DFVL, DLBL, DFVS, TYNS
  • Stocks slide to session lows, the S&P 500 -0.8%.
  • S&P 500 ETFs: SPY, SH, SSO, SDS, IVV, SPXU, UPRO, VOO, RSP, RWL, EPS, BXUB, TRND, SFLA, BXUC, BXDB
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Comments (18)
  • Guardian3981
    , contributor
    Comments (2090) | Send Message
     
    I have ordered products the past month, nothing was ever delayed more then a day.
    3 Feb, 10:29 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11166) | Send Message
     
    So much bull. The real inclement weather started in January not December. December was just normal winter weather, excuses, excuses. A backlog of 10 months of autoes at dealers didn't happen in 1 month. We call this stuffing the channel.
    4 Feb, 02:39 AM Reply Like
  • Hendershott
    , contributor
    Comments (1587) | Send Message
     
    The weather will warm up soon. Spring is coming.
    3 Feb, 10:30 AM Reply Like
  • june1234
    , contributor
    Comments (2701) | Send Message
     
    Weather has been fine out west this winter. It was 80 in Tucson other day. California's dealing with a drought.
    3 Feb, 11:38 AM Reply Like
  • Cliff Hilton
    , contributor
    Comments (1759) | Send Message
     
    Even my sales are down here in Southeast Texas. Snow and ice.
    3 Feb, 10:38 AM Reply Like
  • Bouchart
    , contributor
    Comments (780) | Send Message
     
    We have bad weather every year around this time. It's what winter does best. And analysts can't predict that?
    3 Feb, 10:41 AM Reply Like
  • mitrado
    , contributor
    Comments (2005) | Send Message
     
    Good. That's what you get for the globalised slavery markets. Now go sell your products to the aliens, cause earthlings don't have enough money to buy anything other than food and lodging.
    3 Feb, 10:47 AM Reply Like
  • mostserene1
    , contributor
    Comments (3353) | Send Message
     
    Aliens aren't exactly dumb. They land in Switzerland to buy Rolexes, and Cuba for cigars. But they visit the USA for our women, and to probe some unlucky guys.
    3 Feb, 10:56 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (889) | Send Message
     
    Recommend decaf from now on.
    3 Feb, 10:57 AM Reply Like
  • june1234
    , contributor
    Comments (2701) | Send Message
     
    Market barely noticed a big miss in ISM number and china data
    3 Feb, 11:15 AM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    Yes, it must be the weather. Curious why that 'explanation' only works when the numbers disappoint?
    3 Feb, 11:40 AM Reply Like
  • Robin Heiderscheit
    , contributor
    Comments (1955) | Send Message
     
    weather is overused but it IS the weather in this case . . . possibly worst winter ever so far in center of the country
    3 Feb, 11:43 AM Reply Like
  • Dave chiodo
    , contributor
    Comment (1) | Send Message
     
    Do the folks who do the 'estimating' not look out the window or watch TV weather before making their forecasts/wild guesses?
    3 Feb, 12:16 PM Reply Like
  • Brad Johnson
    , contributor
    Comments (78) | Send Message
     
    Every time its "weather", do these shills really believe that winter is some sort of one-time event that has never happened before?
    3 Feb, 12:28 PM Reply Like
  • RS055
    , contributor
    Comments (2886) | Send Message
     
    "There will be growth.... in the spring"
    - Chauncy Gardner
    3 Feb, 12:32 PM Reply Like
  • JillKennedy
    , contributor
    Comments (78) | Send Message
     
    Wall Street reminder: Nobody knows anything:
    http://bit.ly/1kFGPVu
    3 Feb, 01:26 PM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    I knew this was coming. Blame it on the weather. But in N'Awlins? And a great deal of the increase is from depletion of savings. Not what booms are made of.
    3 Feb, 07:12 PM Reply Like
  • Peace Maker
    , contributor
    Comments (2) | Send Message
     
    I will not worry so much. Innovation and new technology will tremendously improve productivity. Global buying interest in USD will continue to support the US stock market.
    4 Feb, 02:10 AM Reply Like
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