The markets in the United States dropped today as investors saw data showing a slowdown down in home prices. Share prices of companies in the industrial sector were hit hard today.
Commenting on the market trends, Bill Stone, chief investment strategist at PNC Wealth Management told Bloomberg, “You’re sitting up at all-time highs and you do have a geopolitical situation remaining out there that’s weighing on the market. We got on balance in the U.S. with some good economic numbers. It continues to tell the story of a snap back in second quarter GDP.”
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Last week, Federal Reserve Chairperson Janet Yellen stated that accommodative monetary policy, increasing property and equity prices, and the improving global economy should lead to above-trend growth. She also emphasized the need to create more jobs to put Americans back to work.
Today, data showed that the sales of existing homes rose 4.9% to an annualized rate of 4.89 million for the month of May, up from 4.66 million in April. Home prices climbed at the slowest rate in more than two years. Separately, Markit Economics reported that the U.S. manufacturing expanded to 57.5% in June from 56.4% last month.
Lawrence Creatura, a portfolio manager at Federated Investors Inc. commented, “We came through a period where investors believed that the housing market was weather-affected and that hypothesis was viewed with suspicion. He added that the numbers today were positive, but “no single data point is enough to redefine the health of the housing market. According to him, “It’s only after you’ve seen a series of data that you can be confident that the trajectory of the industry has changed.”
- Dow Jones Industrial Average (DJIA)- 16,936.68 (-10.4 points)
- S&P 500- 1,962.80 (-0.07 points)
- NASDAQ- 4,368.59 (+0.55 points)
- Russell 2000- 1,184.03 (+0.09 points)
- EURO STOXX 50 Price EUR- 3,282.58 (-0.60%)
- FTSE 100 Index- 6,800.56 (+0.36%)
- Deutsche Borse AG German Stock Index DAX- 9,920.92 (-0.66%)
- Nikkei 225- 15,369.28 (+0.13%)
- Hong Kong Hang Seng Index- 23,804.81 (-1.68%)
- Shanghai Shenzhen CSI 300 Index- 2,134.11 (-0.12%)
Stocks in Focus
The stock price of FMC Corporation (NYSE:FMC) declined nearly 5% to $71.10 per share after the company updated its second quarter and full year earnings outlook indicating that the prolonged winter weather in North America and drought in Brazil negatively impacted its sales. The herbicide and pesticide manufacturer now expects its second quarter adjusted earnings to be around $0.95 to $1.05 per share while its full-year adjusted earnings to be in the range of $4.10 to $4.30 per share.
Shares of Integrys Energy Group Inc (NYSE:TEG) rose more than 12% to $68.35 per share. The increase was driven by the report that Wisconsin Energy Corporation (NYSE:WEC) agreed to acquire Integrys for $5.7 billion in stock and cash. The stock price of Wisconsin Energy fell more than 3% to $45.27 a share.
MICROS Systems (NASDAQ:MCRS) gained over 3% to $67.98 per share. Oracle Corporation (NYSE:ORCL) agreed to acquire MICROS for $4.6 billion as part of its strategy to boost its growth. The acquisition came after Oracle posted disappointing fourth quarter results. Shares of Oracles rose to $41.10 a share today.