Stocks opened lower, as expected, with industrial production data doing nothing to lift the gloom.
The blue-chip index, the S&P 500, was off four points at 2,079 after 45 minutes trading, while its mid-cap-focused baby brother the S&P 400 was down a point at 1,458.
The small-cap measure, the Russell 2,000, was down three points at 1,126.
Industrial production in March fell 0.6%, having done likewise the month before.
“Following a 0.6% decline in February, which we felt was dominated by warmer than usual weather depressing utilities output, a small bounce in activity, or at least a smaller decline in overall industrial production looked a sensible forecast, backed up by a slight bounce in the manufacturing ISM index,” suggested Dutch finance house ING.
“Utility production fell less than in February, but still by a sizeable 1.2% MoM [month-on-month], while mining (for which read in large part - shale extraction) fell at an accelerated pace of 2.9% (-1.0% in Feb) and manufacturing also accelerated its decline falling by 0.3% MoM, with particularly large fall (-1.6% MoM) in motor vehicles and parts. If that were not bad enough, even the February figures saw some small downward revisions,” ING added.
“Put all this together and the case for an April rate hike is non-existent, with prospects for a June hike hanging in the balance and needing a meaningful pick up in activity data over the coming months. We still prefer the idea that the Fed will keep policy unchanged until 3Q16,” wrote Rob Carnell, ING's chief international economist.
Downbeat though the mood is, a number of stocks are providing sharp relief, not least Great Basin Scientific Inc (NASDAQ:GBSN), which was up 93% at $5.26 after a first quarter trading update late in the afternoon yesterday.
The molecular diagnostics company revealed revenue had risen 59.4% to $731,422 from a year earlier, while the customer base of revenue-generating customers more than doubled to 222.
Ariad Pharmaceuticals, Inc (NASDAQ:ARIA) climbed 46 cents to $7.25 after presenting updated data from a phase 1 / 2 trial of its investigational tyrosine kinase inhibitor, brigatinib, in patients with advanced malignancies, including anaplastic lymphoma kinase positive non-small cell lung cancer.
“The updated data from the Phase 1/2 trial of brigatinib show a one year overall survival rate of 100% in crizotinib-naive patients, and 81% in patients with prior crizotinib treatment,” stated Rafael Rosell, MD., director, of the Cancer Biology & Precision Medicine Programme Catalan Institute of Oncology.
Sector peer Cellectar Biosciences Inc (NASDAQ:CLRB) slumped by almost a third to $2.10, as it priced a share issue at $2.13. The company is seeking to raise $7mln to use for working capital purposes and to continue the development of CLR 131, its treatment of multiple myeloma.
Market preview
Markets are lacking that Friday feeling after some pedestrian Chinese gross domestic product data.
The People's Republic's economy grew at its slowest pace in seven years during the first quarter, rising 6.7% year-on-year. While most economies would be more than happy with that sort of growth rate, markets have come to expect more from China – although in this case the growth rate was in line or even slightly higher than economists had been expecting.
Nevertheless, the S&P 500, which closed at 2,083 last night, is expected to open at just below 2,080.
The Dow, according to spread-betting quotes, is set to open around 17,907, down almost 20 points.
If those prognostications prove correct, US markets would only be following the example of European markets, which are having a drab end to the week.
Some investors were doubtless taking money off the table ahead of the Opec meeting this weekend and the G20 meeting today.
Domestically, focus is likely to be on results from banking giant Citigroup (NYSE:C).