Monday got off to a fairly flat start and traded that way throughout the day. In the last hour, all hell seemed to break loose, leaving the Dow Jones and Nasdaq 100 indices lower. By close of play the Dow Jones Industrial Average had lost almost 1%. The Nasdaq 100 fared slightly better, losing just short of 0.5%. Internet, technology and telecommunication stocks were definitely out of favour, as were pharmaceuticals and airlines. March personal income and expenditure economic data was released today, in line with expectations at 0.4%. However, income and spending were lower than during the first two months of 2002.
Tuesday saw the release of the consumer confidence index data. The actual figures were lower than those released in March, but still above analyst expectations. I nvestors seemed to be inspired and proceeded to snap up the recently out of favour technology stocks. At close of play the Dow Jones was up by almost 1.5% and the Nasdaq 100 up by almost 2.5%, on the back of the tech buying spree. Other data released today was the Chicago purchasing managers index which actually went down from last month. But, the index is still above the 50% level and this indicates that the manufacturing sector is growing.
Wednesday saw the Dow Jones move from massively in the red to solidly in the black by more than 1%. The Nasdaq 100 fell by almost 1%. Figures out from the Institute of Supply Management Index showed a fall since March although the figure was still above 50% and this means expansion of the sector. Within the same index the new orders index also fell, as did the employment index. The prices paid index actually increased. All of the data released indicates a strong Gross Domestic Product growth of around 4%.
Thursday was a bad day for technology stocks and therefore the Nasdaq 100, and a good day for the Dow Jones, making it three in a row. By close of play the Dow Jones had increased by just short of 0.5%. The Nasdaq 100 fell by almost 3.5%. Economic data released today indicated uncertainty on the jobs front. Whilst unemployment claims fell, the figures for lay offs increased. It was good news from factory orders though. Orders rose by 0.4% which was 0.4% more than expected.
Friday saw more economic data on unemployment. The number of people unemployed rose to a level not seen in 8 years and knocked the confidence of investors. The data from non farm payrolls rose in April but not by the level expected. The unemployment rate grew to 6% which was more than the expected 5.8%. Following the news, the Dow Jones fell by almost 1%. The Nasdaq 100 slipped by another almost 3%. Yet again, technology stocks were the culprit.