U.s. Stocks fell early, taking out lows of friday, as the S&P Index traded below its 200-day average (1905) for the first time in two years. Gold prices ended higher by $8.30, settling at $1,230 an ounce, helped by a combination of a softer dollar on the day, better China export data overnight.
U.s. Stocks fell early, taking out lows of friday, as the S&P Index traded below its 200-day average (1905) for the first time in two years. Gold prices ended higher by $8.30, settling at $1,230 an ounce, helped by a combination of a softer dollar on the day, better China export data overnight.
U.s. Stocks fell early, taking out lows of friday, as the S&P Index traded below its 200-day average (1905) for the first time in two years. Gold prices ended higher by $8.30, settling at $1,230 an ounce, helped by a combination of a softer dollar on the day, better China export data overnight.
Index Up/Down % Last DJ Industrials -223.16 1.35% 16,320 S&P 500 -31.33 1.64% 1,874 Nasdaq -62.58 1.46% 4,213 Russell 2000 -3.54 0.37% 1,049
Equity Market Recap U.S. stocks fell early, taking out lows of Friday, as the S&P Index traded below its 200-day average (1905) for the first time in two years (selling exacerbated into the end of the day). Transport stocks were lower (outside of rails) led by weakness in airlines (Ebola fears/slowing economy overseas); financials were stronger into earnings this week (most of the major banks/regionals report this week), while health-care shares slumpedgroups that stood out to downside today: airlines (Bloomberg airline index falls over 6% most since August last year6 th straight daily shop), energy as oil prices keep falling with Saudi Arabia saying earlier they were comfortable with markedly lower oil prices for an extended periodchemicals fall, led by WLK, LYB, HUN and EMN(it was broad based selling into the close) VIX up 8% over 23 S&P traded to its lowest level since May before bouncing, while the Russell 2000 Index, which has drastically underperformed other averages (-8% YTD vs. S&P up 3%), outperformedNasdaq huge swings (down as much as -1.4% before turning positive in the afternoonthen negative again as semis still weigh on group, as well as high-beta plays). Overall quiet and late volume due to holiday, to pick up with earnings going forward (tomorrow WFC, JPM, C, INTC, CSX). You can look at stock stories below broken down by sector, but it was a broad macro based pullback for major averages late day as technicals breaking down (and many charts)
Commodities Gold prices ended higher by $8.30, settling at $1,230 an ounce, helped by a combination of a softer dollar on the day, better China export data overnight, and as a defensive play given the volatility in the stock market over the past week Oil prices finished lower, but well off worst levels (were down 2% at bottom), with WTI crude closing at $85.74 (low of day $84.07 per barrel), while Brent fell over $1.00 to $88.68 (low $87.93 4-year low), amid oversupply and slowing demand; global growth slowdown concerns having a negative effect on energy prices/stocks (OXY, APA, MRO, DVN, BHI, HAL at lows)
Currencies U.S. dollar weaker, as the dollar index (DXY) dropped about -0.40 to 85.54 (held around that level for most of the afternoon); it was the first drop in the dollar in three days, after Fed officials said a worldwide economic slowdown may delay interest-rate increases, damping demand for the U.S. currency (so overall cautious tone from Fed officials of late, especially with them noting the concerns of a global slowdown made in last weeks Minutes); the euro was higher at 1.2681, while the dollar fell against the yen to 107.35
Bond Market Bond market was closed due to Columbus Day Holiday
Sector News Breakdown Consumer Retailers; JCP names HD executive Marvin Ellison as next CEO (shares also downgraded to sell with $5 target at UBS); LULU cautious mention at ITG; SHLDs K-Mart offers free credit monitoring after Cyber-attack; VFC positive mention in Barrons Auto movers; suppliers BWA, DLPH, GNTX mentioned positively in Barrons over the weekend; LAD cuts forecast for both Q3 and year EPS view (weighs on ABG, SAH, AN, PAH); Fiat Chrysler trades in New York, moving to NYSE today from Milan stock exchange (FCAU); CTB upgraded to buy at SunTrust (and defends shares of GT); TSLA downside momentum remains Building Material/Products: Barclays upgraded TILE and USG to Overweight citing its preference for commercial building products exposure and the company's strong cash flows (downgrades MAS to Equal-weight) Quiet news in restaurant space/consumer staples ahead of earnings season (watch for effects of stronger dollar on future earnings); Leisure/Casinos names underperform early
Energy Oil service stocks cannot get a lift, with shares of HAL, BHI, WFT falling (names down between 10%-15% over the last 5 trading days); energy space in general remains down, though the heavily beaten offshore drillers (RIG, NE, ESV, DO) with relief rally, but overall, just another mess of a day for energy stocks with GDP, APA, MRO, APC, APA, ROSE down day after day Pipelines; TRGP and Targa Resources Corp. agreed to buy APL and ATLS for a total of about $7.7 billion, including debt; holders of Atlas Pipeline will receive $1.26 in cash and 0.5846 units of Targa Resources Partners for each unit they own, a value of $38.66. Atlas Energy will spin off some assets before its acquired by Targa Resources for $1.87B http://goo.gl/nRavfZ Coal producer ACI guides Q3 adjusted Ebitda to $70M-$74M above est. $68.4M
Financials Financials outperformed, with strength in large cap banks (BAC, C, WFC) ahead of earnings this week, starting with JPM, WFC and C tomorrow morning group will become focus this week, with many of the large cap and regional banks reporting this week CME falls after Wells Fargo downgraded to market perform calling the valuation fair, but not expecting multiple expansion DRL jumps after winning $229M Puerto Rico tax refund
Healthcare Ebola leveraged stocks remain volatile after reports a Texas health worker has contracted Ebola after treating a Liberian who died of the disease at a Dallas hospital last week; shares of protective suit makers (LAKE/APT), as well as vaccine names (TKMR, BCRX, CMRX) still active; an experimental Canadian-made Ebola vaccine will begin a clinical trials Monday in what officials are calling a promising development (NLNK), Bloomberg reported Stock movers; VRTX upgraded to Overweight at Piper citing likely approval of the company's Kalydeco; ALNYs investigational RNAi therapeutic, patisiran (ALN-TTR02), demonstrated effectiveness as a treatment for patients with familial Amyloidotic polyneuropathy (FAP) who have transthyretin (TTR)-mediated amyloidosis; STE offered to buy Britains Synergy Health Plc for about $1.9 billion http://goo.gl/m5ZYTm BMY, PCYC and JNJ in agreement to evaluate safety, tolerability, preliminary efficacy of BMYs investigational PD-1 immune checkpoint inhibitor Opdivo (Lymphoma combo); NSPH received 510(k) clearance from the FDA for its Verigene EP Nucleic Acid Test
Industrials & Materials Transports; rails in focus, report in WSJ that CP approached CSX about merging the two rails http://goo.gl/13nnuU shares of NSC, KSU rallied; airlines lagged the transport index (UAL) Industrial products; RW Baird downgraded DOV and PH to neutral as softening energy prices are likely to impact future growth; GE to acquire Milestone Aviation for $1.775B Metals & Mining; iron ore prices rose $3.93, or 4.9%, to $84.17 per ton, according to a price index compiled by Metal Bulletin. (Bloomberg) its biggest advance since Oct. 2012 (lifts CLF, VALE, RIO, as well as metal sentiment in general); CLF cut to Neutral at JPM, cutting tgt to $5; Gold miners mixed despite a bounce in gold prices earlier; shares of NEM, GG, ABX mixed Grain prices rise, with corn up 11c to session high $3.45 on short covering - US harvest delays - RTRS (biggest gains since January) helps ag names (DE, CAT, AGCO)
Technology, Media & Telecom Top movers; AAPL has remained immune (thus far) to the recent market volatility, holding up as iPhone 6 and 6 Plus set to be available in 36 additional countries by end of October and available in China as of Oct 17; WSJ reported Iliad scraps plan to buy TMUS (http://goo.gl/D3US1F) ; CRM Dreamforce software conference all week Semis lower; Pacific Crest downgraded shares of FSL, ONNN and SLAB due to evidence of inventory corrections at distributors (also lowering estimates on several names); says top picks are AVGO, INTC, MXIM, RFMD, SWKS and SYNA (semis remained weak overall after Friday pullback following MCHP lower guidance note INTC reports tomorrow night) SOX index down 13% this month alone (so far) High growth tech sold off early, with shares of DATA, DWRE, FEYE, PANW, SPLK falling; high tech, security and software related names weak (CSOD, QLIK down); GPRO now down about 18% since last Tuesday in high-beat sell-off (pares losses in afternoon)
NTCT to merge with communications unit of DHR in $2.6B deal http://goo.gl/19joZ3 (DHR holders will receive ~62.5M shares of NTCT common stock and own ~60% of the company) Internet movers mostly to downside as momentum plays remain under pressure amid recent sell-off; shares of SFLY fell on reports Silver Lake failed to reach a deal to acquire and combine SFLY w/Snapfish http://goo.gl/C0ia0y ; GPRO downward momentum continues (down as much as 16% from highs) group pared early losses (NFLX, EBAY, YELP lowerFB higher) Movers; WDAY upgraded to Outperform at Northland ($100 tgt); HIVE falls on lower guidance
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