Manufacturing In U.S. Shrank In August For Third Month

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U.S. manufacturing shrank for a third month in August in the longest decline since the recession ended in 2009, threatening to deprive the world’s largest economy of a driver of growth.The Institute for Supply Management’s factory index fell to 49.6 last month, the lowest since July 2009, from 49.8 in July, the Tempe, Arizona-based group said today. Economists in the Bloomberg survey projected an August reading of 50, which is the dividing line between expansion and contraction. Measures of orders and production dropped to three-year lows.Enlarge imageA worker reaches for glass to assemble a double-pane window frame at Crystal Windows & Doors IL Manufacturer in Chicago. The Institute for Supply Management’s U.S. factory index fell to 49.6 in August from 49.8 a month earlier, the Tempe, Arizona-based group said today. Photographer: Tim Boyle/Bloomberg2:57Sept. 4 (Bloomberg) -- Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ, talks about the Institute for Supply Management's manufacturing index and U.S. vehicle sales for August. The ISM's factory index fell to 49.6 last month, the lowest since July 2009, from 49.8 in July. (Source: Bloomberg)Stocks fell early on concern American factories, which sparked the U.S. expansion three years ago, are succumbing to a manufacturing slowdown that stretches from Asia to Europe. The data underscore Federal Reserve Chairman Ben S. Bernanke’s view that the economy is too weak to spur hiring and may require additional monetary stimulus.“Manufacturing has been one of the stalwarts of an otherwise lackluster recovery but it’s starting to show some cracks,” said Richard Moody, chief economist at Regions Financial Corp. in Birmingham, Alabama, who correctly forecast the index. “Until we get more clarity on the fiscal policy outlook here, more clarity on Europe and some signs on the course of China’s economy, manufacturing is just going to languish.”The Standard & Poor’s 500 Index, which had fallen as much as 0.7 percent, dropped 0.1 percent to 1,404.94 at the close inNew York as shares of Apple Inc. rallied. The yield on the benchmark 10-year Treasury note climbed to 1.57 percent from 1.55 percent on Aug. 31.

Automobile Sales

Demand for autos may prevent bigger declines in manufacturing. U.S. sales at Chrysler Group LLC, Ford Motor Co. and General Motors Co. rose more than analysts’ estimates last month, industry figures showed today. Chrysler deliveries increased 14 percent, while Ford’s rose 13 percent and GM’s climbed 10 percent.Estimates for the supply managers’ index from the 81 economists surveyed ranged from 48.7 to 51.5. A reading above 42.5 generally indicates an expansion in the overall economy, the ISM has said. The gauge averaged 55.2 in 2011 and 57.3 a year earlier.http://www.bloomberg.com/news/2012-09-04/ism-index-of-u-s-manufacturing-decreased-to-49-6-in-august.html

Mired Shares Await Word on Europe

By REUTERS

Published: September 4, 2012

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The Standard & Poor’s 500-stock index closed slightly lower on Tuesday as investors continued to await clarity on the European Central Bank’s plans to shore up heavily indebted countries, but the market ended off its lows on a rally in Apple shares.Equities were lower for much of the session, with industrial and material companies weak after a report showing that manufacturing contracted by its fastest pace in more than three years. Telecommunications and consumer staples, two groups that tend to outperform during periods of uncertainty, led on the day.Markets remain skittish ahead of the European bank’s meeting on Thursday, when the bank’s president, Mario Draghi, is expected to introduce plans to lower borrowing costs for countries like Spain and Italy, whose bond market troubles are the latest front in the region’s debt crisis.“We’re not going to get any definitive direction so long as everyone is waiting around on the Fed and E.C.B.,” Michael Vogelzang, president of Boston Advisors, said. “Things seem very soft right now, and until that changes, the market may have a hard time getting out of the range we’ve been in.”On Friday, the Federal Reserve Board chairman, Ben S. Bernanke, disappointed investors by declining to signal any imminent stimulative action to bolster sluggish growth, though he kept the door open for further easing down the line.Apple rose 1.5 percent to $674.97 and helped erode broader losses. Earlier, the tech giant distributed invitations to an event in San Francisco on Sept. 12, setting the stage for what is widely expected to be the release of the iPhone 5.The Dow Jones industrial average was down 54.90 points, or 0.42 percent, at 13,035.94. The Standard & Poor’s 500-stock index was down 1.64 points, or 0.12 percent, at 1,404.94. The Nasdaq composite index was up 8.09 points, or 0.26 percent, at 3,075.06.In company news, Valeant Pharmaceuticals International agreed to buy Medicis Pharmaceutical for $2.6 billion in cash. Valeant shares climbed 14 percent to $57.58 on the New York Stock Exchange while Medicis surged 38 percent to $43.65.About 57 percent of companies traded on the New York Stock Exchange closed up; almost three-fifths of Nasdaq-listed shares ended higher.Interest rates were slightly higher. The Treasury’s benchmark 10-year note fell 8/32, to 100 15/32, and the yield rose to 1.57 percent from 1.55 percent late Friday. The bond market was closed on Monday in observance of Labor Day.

McDonald’s plans to open vegetarian-only restaurants in India

(McDonald’s Corp./ Associated Press ) - This undated image provided by McDonald’s Corp. shows an item available in it’s soon to open vegetarian-only restaurants in India. The company already offers menu items that cater to local tastes, such as the Maharaja Mac, which is a Big Mac except with chicken patties instead of beef.

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By Associated Press, Updated: Tuesday, September 4, 8:54 PM

NEW YORK — McDonald’s Corp., the fast food chain that brought the hamburger to the world, is opening what may be its first vegetarian-only restaurants.The world’s biggest hamburger chain said Tuesday that the locations in India will serve only vegetarian food because of customer preferences in the region. The company could not immediately say when the restaurants would open or how many there would be.http://www.washingtonpost.com/business/mcdonalds-plans-to-open-vegetarian-only-restaurants-in-india/2012/09/04/3b5274f2-f6f4-11e1-a93b-7185e3f88849_story.html