Stock Market News for September 03, 2014 – September 3, 2014 …
Benchmarks began September mostly in the red after a drop in crude oil prices impacted the energy sector. The day’s upbeat manufacturing data was overshadowed by the fall in crude prices. The S&P 500 lost initial gains, but was able to settle above the 2k mark.
For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) declined 0.2% to close at 17,067.56. The Standard & Poor 500 (S&P 500) had hit an intraday record high of 2006.15, before dropping 0.05% to settle at 2,002.28. The tech-laden Nasdaq Composite Index closed at 4,598.19; gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) went up 2.3% to settle at 12.25. A total of 5.2 billion shares were traded on Tuesday, more than the last five-day average of 4.4 billion. Decliners outpaced advancing stocks on the NYSE. For 51% stocks that declined, 46% advanced.
Shares of energy companies were hit hard due to a fall in crude oil prices. On Tuesday, Brent crude oil prices plunged almost 3% to $100.34 a barrel due to weak demand outlook. Brent crude oil futures touched its lowest level in 15 months on Tuesday.
Demand for oil took a beating following discouraging Chinese and European economic data. While two measures of China’s factory output lost momentum in August, manufacturing sector across the 18-nation Eurozone slowed down last month. Indications of soft economic growth in China and Europe weighed on an U.S oil market already hit by oversupply.
A stronger dollar was also cited to be one of the reasons behind this fall in crude oil prices. The dollar touched its highest level against yen this year. The dollar gained strength as investors speculated that strong economic growth in U.S. will compel the Federal Reserve to raise federal funds rates sooner than expected in next year.
The Energy Select Sector SPDR (XLE) was the biggest loser among the S&P 500 sectors. The sector declined 1.3% yesterday. Key energy stocks from the sector such as Halliburton Company (HAL – Analyst Report), EOG Resources, Inc. (EOG – Analyst Report), Exxon Mobil Corporation (XOM – Analyst Report) and Schlumberger Limited (SLB – Analyst Report) decreased 0.2%, 1.9%, 0.9% and 1.4%, respectively. Overall, 4 out of 10 sectors of the S&P 500 ended in the red.
The rise in ISM Manufacturing Index failed to boost investor sentiment. The Institute for Supply management reported its August PMI had increased 1.9 percentage points from July’s reading of 57.1% to 59%. The increase was ahead of the consensus estimate of 56.9%. This is the index’s highest reading since Mar 2011. Additionally, the New Orders Index jumped 3.3% to 66.7%. The Production Index also increased by 3.3% to 64.5%.
The final Markit reading of US Manufacturing Purchasing Managers Index was at 57.9 in August, up from 55.8 in July. However, it was lower than the preliminary reading of 58.0.
Separately, the US Census Bureau of the Department of Commerce reported construction spending of $981.3 billion in July, up 1.8% from revised June estimate of $963.7 billion. This increase in the payout by builders on residential and nonresidential structures was more than the consensus estimate of an increase by 1%.
Staples, Inc. (SPLS – Analyst Report) climbed 8.1% after a rating upgrade. Staples gained the most among the S&P 500 components. On the other hand, Wynn Resorts Ltd. (WYNN – Analyst Report) turned out to be the worst performer among the S&P 500 components. Shares of Wynn Resorts dropped 4.1% due to a decrease in gambling revenues in Macau for the month of August.
The Home Depot, Inc. (HD – Analyst Report) was the worst performer among the Dow components. Shares of the home improvement company dropped 2% following an investigation of stolen credit card data from the company.
Shares of Apple Inc. (AAPL – Analyst Report) closed at an all-time high of $103.3, up 0.8% as investors anxiously await the release of iPhone 6 on Sep 9. Tesla Motors, Inc. (TSLA – Analyst Report) too closed at an all-time high of $284.12, up 5.4%.
On the mergers and acquisition front, Dollar General Corporation (DG – Analyst Report) raised its bid to buy Family Dollar Stores Inc. (FDO – Analyst Report). Dollar General increased its offer price to $80 per share, more than the previous offer of $78.5. Shares of both Dollar General and Family Dollar Stores gained 0.6% and 0.5%, respectively.
Link to original –
Stock Market News for September 03, 2014 – September 3, 2014 …
See which stocks are being affected by Social Media
