The stock markets in the United States declined after Dennis Lockhart, president of the Federal Bank of Atlanta stated that some discussion regarding tapering the $85 billion bond-buying program will take place next month during an interview with Bloomberg Radio.
His statement fueled speculations among investors that the Federal Reserve will reduce its stimulus by December, which is earlier than the projection of economists that policymakers will begin tapering in March next year.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
James Paulsen, chief investment strategist at Wells Capital Management opined that the idea that the Federal Reserve could start tapering in December was because of the improvement of the employment situation for the month of October.
He said, “The jobs report Friday, that’s really what changed the idea that we could have a December taper, and ever since then you’ve had more and more comments coming out of the Fed that perhaps it is on the table. Last night it was Fisher and now Lockhart. What he came out and said today isn’t earth-shattering but it does add to the momentum to the idea.”
Investors will evaluate the jobless-benefits claims this week, and the situation of the manufacturing sector in New York. Last month, the Department of Labor reported that American employers added more jobs than expected, and data from the Department of Commerce showed that the country’s economic growth grew faster at 2.8% in the third quarter.
- Dow Jones Industrial Average (DJIA)- 15, 751.60 (-0.20%)
- S&P 500- 1,767.81 (-0.23%)
- NASDAQ- 3,919.66 (0.0%)
- Russell 2000- 1,100.65 (-0.08%)
- EURO STOXX 50 Price EUR- 3,034.68 (-0.59%)
- FTSE 100 Index- 6,726.79 (-0.02%)
- Deutsche Borse AG German Stock Index DAX- 9,076.48 (-0.34%)
Asia Pacific Markets
- Nikkei 225- 14, 588.68 (+2.23%)
- Hong Kong Hang Seng Index- 22,901.41 (-0.73%)
- Shanghai Shenzhen CSI 300 Index- 2, 340.89 (+1.04%)
Stocks in Focus
The stock price of DISH Network Corp (NASDAQ:DISH) increased 6% to $50.35 per share after the satellite-television service provider reported better than expected financial results for the third quarter, and its chairman Charlie Ergen stated that its plan to acquire T-Mobile US (NYSE:TMUS) is not off the table.
Dean Foods Co (NYSE:DF) declined 7.66% to $18.20 per share after the company reduced its full year earnings forecast because the prices of dairy commodities are still high, which creates a more challenging situation than its previous expectation. The third quarter financial results of the company missed consensus estimates. Dean Foods reported $0.12 adjusted earnings per share from continuing operations compared with the estimated $0.14 adjusted earnings per share.
On the other hand, Sarepta Therapeutics Inc (NASDAQ:SRPT) declined 64% to $13.16 per share after U.S. regulators said that the company needs more data for applications of its experimental drug for the treatment of Duchenne muscular dystrophy.