Stocks closed lower today, following a choppy trading session, after the FOMC minutes, from the Fed’s latest meeting, failed to provide strong indications about more easing to revitalize the struggling economy.
Markets were dragged deeper into negative territory today, as the Fed’s FOMC minutes did not offer hope, since investors and financial markets, have been anticipating a more definitive signal of additional stimulus. According to the minutes, the Fed is open to potentially buying more bonds to stimulate the economy, but economic conditions may need to worsen for that move to happen. The Fed also reiterated that interest rates will remain low until at least through late 2014.
On the economic front, applications for U.S. home mortgages fell last week by 2.1%, thanks to a fall in refinancing activity, despite interest rates sitting at record lows. Also, The U.S. Commerce Department, released reports showing the trade deficit narrowed modestly in May, due in part to a rise in exports and cheaper oil oversees. The gap shrank 3.8% to $48.7 billion, compared to a revised $50.6 billion in April.
Have a good Wednesday night!
Market Indices/Statistics:
- Dow closed down 48.59 pts/-0.38% to 12,604.53
- S&P closed down 0.02 pts/-0.00% to 1,341.45
- Nasdaq closed down 14.35 pts/-0.49% to 2,887.98
- 9 of the 30 Dow stocks closed higher
- 4 of the 10 S&P 500 sectors closed up
- Energy was the most positive sector (+1.39%); Industrials was the most negative sector (-0.69%)
- The VIX ended down 0.77 at 17.95
- Oil is up $2.19 to $86.10
- Nat Gas is up $0.114 to $2.842
- Gold is down $4.00 to $1,575.70
- Euro vs. Dollar is down $0.0012 to $1.2237
- Dollar vs. Yen is up $0.33 to $79.73
Top Headlines:
Noble Energy (NBL, +$1.81/+2.18% to $84.87) announced that it has agreed to sell certain oil and natural gas properties in Western Oklahoma and the Texas Panhandle to Unit Corporation (UNT, +$0.86/+2.38% to $36.96) for $167 million.
According to sources, Abercrombie & Fitch Co (ANF, +$1.35/+4.12% to $34.12) is planning a large share buyback to attract investors and is also likely to cut back on its European expansion plans.
Reports indicate AMR Corp., the parent of bankrupt American Airlines, is considering a merger with a number of carriers including US Airways Group (LCC, +$0.21/1.51% to $14.12).
Hhgregg (HGG, -$4.20/-36.40 to $7.34) shares traded sharply lower after the electronics retailer cut its full-year outlook. Best Buy (BBY, -$1.77/-8.37% to $19.37) shares also fell on the news.
It has been reported that Yahoo! (YHOO, -$0.10/-0.63 to $15.80) continues its search for a new CEO. Reports indicate that Interim CEO, Ross Levinsohn, is leading the race as of now.
Earnings:
Marriott International (MAR, -$0.14/-0.37 to $38.03) reported Q2 adjusted EPS of $0.42 vs. estimates of $0.42; revenue was $2.78 billion vs. estimates of $2.81 billion.
Coming Thursday:
Economic Reports: Import Price Index (1.8% MoM decline expected) at 8:30 a.m.; Initial Jobless Claims (370K expected) at 8:30 a.m.; Continuing Claims (3.3M expected) at 8:30 a.m.; Monthly Budget Statement (-$64.5 billion expected ) at 2:00 p.m. Earnings: Fastenal (est.: $0.37)
Giuseppe Montefinese
Corporate Actions & Market Watch
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