After experiencing seven consecutive days of gains, the stock markets in the United States halted its positive move due to the decline of material producers, as investors continue to monitor the potential action of the Federal Reserve regarding the reduction of $85 quantitative easing or bond repurchase programs. Investors also continue to weigh the ongoing situation in Syria.
In an interview with Bloomberg, Ryan Larson, head of U.S. equity trading at RBC Global Asset Management, commented that the slight decline of trading in the stock markets is not surprising. He said, “It shouldn’t be too surprising to see a modest pullback after the strong moves we’ve seen so far this month. With data light over the next several sessions, potential headlines regarding Syria and the much anticipated FOMC meeting next week will garner much of the attention.”
Data from the Labor Department indicated that the number of people who applied for jobless claims in the United States last week declined to its lowest level since 2006. The jobless claims dropped to 292,000 for the week ending September 2, however, the condition of the jobs market did not change because the decline in filings for unemployment benefits was caused by a computer-network glitch.
Millan Mulraine, director of U.S. rates research at TD Securities in New York, projected that a stronger growth in the jobs market is approaching. She said, “Stronger job growth may be on the horizon. When we start seeing improvement in the labor market, I think that will provide another tailwind for confidence, and spending, going forward.”
Meanwhile, the Federal Reserve is expected to provide details regarding its plan to reduce its quantitative easing. The majority of economists projected that the Feds will reduce its bond buying activity to $75 billion.
With regard to the issue in Syria, United States Secretary of State, John Kerry is in Geneva to discuss the diplomatic resolution recommended by the Russia government for Syria to give up its chemical weapons. Syrian President Bashar-al Assad said an agreement should be a “two-way-street” and demanded that the United States government stop arming rebels and drop its threat against his country. However, in his telephone conversation with the head of the Syrian opposition that a U.S. military strike is still on the table.
- Dow Jones Industrial Average (DJIA)- 15,309 (-0.11%)
- S&P 500- 1,683 (-0.31%)
- NASDAQ- 3,717 (-0.02%)
- Russell 2000- 1,051 (-0.38%)
- EURO STOXX 50 Price EUR- 2, 862 (-0.05%)
- FTSE 100 Index- 6,588 (+0.01%)
- Deutsche Borse AG German Stock Index DAX- 8,494 (-0.02%)
Asia Pacific Markets
- Nikkei 225- 14, 387 (-0.26%)
- Hong Kong Hang Seng Index- 22, 953 (+0.07%)
- Shanghai Shenzhen CSI 300 Index- 2, 507 (+0.99%)
Stocks In Focus
The stock price of The Walt Disney Company (NYSE:DIS) rose by 2.44% to $65.49 per share after reporting its plan to increase its shares repurchase program to around $6 billion to $8 billion next year. Disney’s chief financial officer, Jay Rasulo, said the entertainment company will secure a loan to finance a portion of its shares buyback.
The shareholders of Dell Inc. (NASDAQ:DELL) approved the $24.9 billion buyout proposal of Mr. Michael Dell and Silver Lake. According to a person briefed about the voting process of the PC maker, 65% of the shares voted approved in favor of the offer. The result was not surprising given the fact that activist investor Carl Icahn admitted defeat in its fight against the proposal.
“I am pleased with this outcome and am energized to continue building Dell into the industry`s leading provider of scalable, end-to-end technology solutions. As a private enterprise, with a strong private-equity partner, we`ll serve our customers with a single-minded purpose and drive the innovations that will help them achieve their goals,” said Mr. Dell in a statement.
Lululemon Athletica inc. (NASDAQ:LULU) plummeted by 5.40% to $65.29 a share after the company reduced its earnings guidance for 2013. The company indicated that it is experiencing “short-term pains” caused by late deliveries of its products for the full season after tightening its sewing standards to improve the quality of its products.
Meanwhile, the stock value of Pandora Media Inc (NYSE:P) rose by more than 12% to $23.97 per share after the company appointed Brian McAndrews to lead the company as CEO, president and chairman in an effort to increase its revenue and strengthen competition against rivals.