The major headlines in the stock market today include: the ECB's about to release its balance sheet - which is quite scary, Spain is about to request a full-fledged bailout, and disappointing motor vehicle sales follow an unexpectedly good manufacturing report.
Here's a closer look.
Perhaps the most troubling news from overseas is the record unemployment of 11.4% in the Eurozone. Spain and Greece continue to have unemployment above 25% and Spain's youth unemployment is above 50%. "Youth unemployment, especially if prolonged, threatens to harm the self-esteem and economic potential of young people now and in the future," Jonathan Todd, a spokesman for the European Commission, said in a statement on Monday after the release of joblessness figures. "This could also pose a serious threat to social cohesion and increase the risk of political extremism," he said. "E.U. institutions and governments, businesses and social partners at all levels need to do all they can to avoid a "lost generation,' which would be an economic and social disaster."
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Another manufacturing report by London-based Markit showed that manufacturing activity in the U.S. came in at 51.1 in September and averaged 51.4 in the third quarter, both three-year lows. While the U.S. manufacturing numbers continue to be stagnant they are better than recent manufacturing reports from overseas. China's purchasing mangers' index barely budged, inching up to 47.9 in September from 47.6 last month and was the 11 straight month manufacturing contracted in China. Manufacturing in the Eurozone measured by Markit's PMI contracted for the 14th consecutive month with a reading of 46.1.
The Dow Jones was down 52 points, or 0.39%, and the S&P 500 was down 0.86 points, or 0.06% as of noon.
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