New York Manufacturing Index Falls More Than Expected; Stocks Edge Slightly Higher – September 15, 2010

Markets edged higher Wednesday as the S&P 500′s 200 day moving average eclipsed 1115 but below the 1130 threshold considered by many analysts as a target level that could trigger buying. August industrial production grew for the twelfth month out of the last fourteen to the tune of 0.2%, less than the 0.6% growth posted in July. The New York region manufacturing index, a key indicator, also fell to 4.1 from 7.1, below the expected 6.4. After yesterday’s positive day, tech stocks declined thanks to bearish comments by analysts. Gains were also tempered by declines in energy shares due to the fall in crude oil prices. Major movers today were Chevron (CVX) with a decrease 0.8% to $78.88, and Kraft Foods (KFT), who saw a 1.3% increase after announcing an expected additional $1 billion in global sales by 2013 while their North America operations continue to struggle. The Dow Jones and S&P 500 increased 46.24 points to 10572.73 and 3.97 to 1125.07, respectively. The NASDAQ rose similary, up 11.55 points to 2301.32. The price of oil decreased to $75.65 per barrel. Gold decreased to $1267.30 per ounce for the day.

Word on the Street

• Stocks head higher on positive industrial production growth for August.
• Gains are tempered by a higher than expected drop in the New York area manufacturing rate.
• Following their $20 billion acquisition of Cadbury earlier this year, Kraft Foods (KFT) announces anticipated increases of worldwide chocolate and biscuit sales by 2013.
• The World Trade Organization rules that Boeing (BA) benefited from federal subsidies, but to a lesser extent than their European competitors.
• Microsoft (MSFT) releases the beta of Internet Explorer 9 with a focus on competing better with Mozilla Firefox and Google Chrome (GOOG).
• Toys R Us announces they will open 600 pop-up stores featuring classic FAO Schwarz toys to gear up for the coming holiday season.
• Tim Warner Cable’s (TWX) CFO foresees a loss of subscribers this quarter due to the depressed housing market.
• Rumors predict Apple (AAPL) will soon announce a newspaper subscription service for iPads.
• Japan continues to unload yen in an effort to halt the currencies relentless climb.

Interesting Tidbits

• Think twice before splurging for these delicious milkshakes – you’ll save money and calories.
• Check out this list of the top food towns in America. Hungry yet?
• After Reggie Bush voluntarily relinquished his Heisman Trophy after sanctions for NCAA violations, the Heisman committee announces the 2005 trophy will remain vacant.

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