Questionable index or not - the Dow closed yesterday near its 6 month low, as stocks continue to feel the pressure from the Chinese market sell-off, and a continued decline in commodities. The energy sector continues to be the worst performer, and global macroeconomic growth concerns continue to weigh on investors. The good news: global stock markets steadied today, and 75% of S&P 500 companies beat earnings estimates last week. (CNBC)
Businesses are slowly starting to accelerate their spending, boosting orders for long-lasting manufactured goods and indicating they may be shaking off the rough start to the year. New orders for durable goods-which encapsulate a diverse range of products ranging from toaster ovens to aircraft carriers (all those designed to last at least three years) rose a seasonally adjusted 3.4% in June, the first rise since March. One more piece of positive data for the Fed to digest this week. (WSJ)
General Motors is poised to spend $5bn on development of a new family of vehicles to push into emerging markets, deepening its partnership with China's SAIC Motor. The cars will be under the Chevrolet brand, and will be manufactured in China, Brazil, India, and Mexico. GM estimates that almost 90% of the growth in worldwide passenger car sales in the next 15 years is expected to come from emerging markets. (FT) Rival Ford reported EPS of $.47 / share this morning on quarterly revenue of $37bn, handily beating estimates.