Decreasing Stocks with Global Economic Decline- S&P 500 Index (INDEXSP: .INX), The Dow Jones industrial average (INDEXDJX: .DJI), The Nasdaq composite (INDEXNASDAQ: .IXIC) – Stock in Focus J.P. Morgan Funds (NYSE:JPM), Royal Caribbean Cruises (NYSE:RCL), Carnival (NYSE:CCL) and the Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH)

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By Thomas Copeland on September 3, 2014 Intl News

There has been a huge downfall in economic growth all over the world; crude oil prices recently dropped by 3 percent, which affected oil producers’ stocks. Small companies experienced gains and the dollar went higher than euro after short-term interest rates increased.

The CIO of BMO Private Bank Chicago, Jack Ablin said that this presents how strong the U.S. is against global declines.

There was a 1.09 point drop in the S&P 500 Index (INDEXSP: .INX) that became 2,002.28. There was a decrease of 30.89 points in The Dow Jones industrial average (INDEXDJX: .DJI) down to 17,067.56.

The NASDAQ composite (INDEXNASDAQ: .IXIC) went up by 17.92 points which was 0.4 percent to 4,598.19.

There were two reports that came out on Tuesday that showed positive signs of economic growth in the U.S. The first was the Institute for Supply Management, which said that the manufacturing gauge came up to 59 the previous month which was the highest since 2011. The second was the Commerce Department report that stated the 1.8 percent construction spending in July which was the largest increase in the past two years.

Anastasia Amoroso of the J.P. Morgan Funds (NYSE:JPM) stated that the economic expansion is clear but it hasn’t hit the stock market as yet. She said this was because the signs of growth increased the likeliness for the Federal Reserve to shift short-term interest rates.

Amoroso continued to say that the economy is moving towards higher rates therefore a stronger economic drive may slow down the market.

On Thursday, the European Central Bank will meet and U.S. employment reports for the last month will go public on Friday. The S&P Index (INDEXSP: .INX) has increased by 8 percent this year due to better hiring and increased corporate profits.

Germany’s DAX rose 0.3 percent and the CAC-40 of France and the FTSE 100 of Britain went flat. The euro continued to decline and reached $1.313 compared to the U.S. currency. Economic reports have shown the recent decline of the European economy thus affecting the euro.

Oil prices brought down shares of both oil and gas companies. U.S. crude fell $3.08 to a value of $92.88 per barrel. This was the lowest price it hit since the year started.

The Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) is going to purchase Prestige Cruises International in a $3 billion deal. This made the Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH)’s stock move up by 11 percent. Analysts predicted that the deal will help the Norwegian Cruise Line Holdings Ltd. (NASDAQ:NCLH) compete with other bigger competitors like Royal Caribbean Cruises (NYSE:RCL) and Carnival (NYSE:CCL).

Exelixis Inc. (NASDAQ:EXEL) had a major dip in its value, almost by half of its current value, when the failure of its prostate cancer treatment did not meet its goals. Shares of the company went down by 55 percent, from $22.29 to $1.85.

The bond prices of the U.S. government fell and long-term interest rates peaked. There was an increase of 2.41 percent on the 10-year note yield from last Friday.
Gold dropped by $22.40 or about 1.7 percent reaching a value of $1,265/ounce. Silver dropped 34 cents to $19.152 an ounce while Copper was constant at $3.155 per pound.