Conflicting economic data once again has U.S. stock markets searching for direction. The National Association of Home Builders/Wells Fargo Housing Market Index climbed to 44 this month from 41 in April, another sign that the housing market is improving. On the flip side, manufacturing production fell 0.4% in April, and industrial output dropped 0.5%, which was lower than the 0.2% drop forecast by economists. Stocks edged lower in early trading before rallying and then settling in for modest gains. As of 3:15 p.m. EDT the Dow Jones Industrial Average and the S&P 500 have gained about 0.2% each.
Alcoa Inc (NYSE:AA) is down 0.8% as investors fear that weak demand and low aluminum prices will only get worse. Europe piled onto the weak U.S. manufacturing data by announcing a 0.2% decline in France’s GDP and just 0.1% growth in Germany in Q1. These should be two of the healthier economies in Europe, so if they’re not growing, then Europe as a whole will continue to struggle. Alcoa Inc (NYSE:AA) is dependent on macro growth from the U.S., Europe, and China, so today’s numbers should leave investors feeling queasy at best.
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In the flight from risky stocks, investors have pushed shares of consumer staple The Procter & Gamble Company (NYSE:PG) 1.4% higher to lead the Dow today. At an investor conference yesterday, CFO Jon Moeller hinted that new products could obsolete entire product categories and give the company an advantage over competitors. The Procter & Gamble Company (NYSE:PG) saw organic sales growth of just 3% in the fiscal third quarter. Management had expected more, and it hopes to change that with a new line of products. For now, investors see the stock’s juicy 3.1% dividend yield as a reason to buy in uncertain economic times.
The article Mixed Economic Data Gives Investors Little Direction originally appeared on Fool.com and is written by Travis Hoium.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble.
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