Market volatility causes half of Thursday’s gains given back.
Earnings disappointments were the primary cause for the declines as the warm feelings about ECB QE faded.
Particularly notable was a weak earnings report from economically sensitive UPS where the company reported earnings of only $1.25 vs $1.47 expected. It’s significant since the company cited slow domestic business as the reason. Dow heavyweight McDonald’s fell on earnings and outlook which crimp’s consumer spending.
This might mean that the economy isn’t as rosy as those prone to “happy talk” would have you believe.
To wit economic data released Friday included: China PMI came in better at 49.8 vs 49.5; Chicago Activity Index was negative at -0.05 vs