The stock markets in the United States continued to decline as investors were disappointed by the latest economic data. The Dow Jones Industrial Average (DJIA) dropped 1.40%; the S&P 500 fell 1.32% and the NASDAQ slid 1.59%.
The Conference Board Consumer Confidence index unexpected dropped from 93.4 to 86 in September. Economists were expecting a drop to 93.1.
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The expectations of consumers on business conditions declined from 20.8% to 18.6% while their prospects for the labor market fell from 17.8% to 15.2% over the next six months.
The S&P/Case Shiller composite index of 20 cities rose 0.6% in July, which was lesser than the 1% increase recorded in June.
Meanwhile, the Chicago Barometer Business also declined to 60.5 last month from 64.3 in August, according to a report from the Institute for Supply Management-Chicago. The consensus estimate for September was 61.5.
In an interview with Bloomberg, David Tepper of Appaloosa Management said the price-to-earnings ratios for U.S. equities are not high and junk bonds are at the mid-point point of fair value.
Tepper said, “The U.S. economy is pretty good, stocks are not at high multiples right now.” Last month, he commented that the bond market rally will start to end after the European Central Bank (ECB) unexpectedly decided to reduce the interest rates and to start repurchasing asset-backed securities and covered bonds.
During the interview, Tepper rejected the importance of the departure of Bill Gross departure from PIMCO. He said, “Who cares? Long term, it does not mean anything. The market is a market and it is bigger than anybody.”
- Dow Jones Industrial Average (DJIA)- 16,804.71 (-1.40%)
- S&P 500- 1,946.16 (-1.32%)
- NASDAQ- 4,442.09 (-1.59%)
- Russell 2000- 1,086.68 (-1.36%)
- EURO STOXX 50 Price EUR- 3,195.08 (-0.96%)
- FTSE 100 Index- 6,557.52 (-0.98%)
- Deutsche Borse AG German Stock Index DAX- 9,382.03 (-0.97%)
- Nikkei 225- 16,082.25 (-0.56%)
- Hong Kong Hang Seng Index- 22,932.98 (-1.28%)
- Shanghai Shenzhen CSI 300 Index- 2,450.99 (+0.13%)
Stocks in Focus
The stock price of Angie’s List Inc (NASDAQ:ANGI) surged more than 19% to $7.59 per share driven by the report that it is exploring strategic alternatives including a sale. The company previously announced that it entered into new $85 million credit agreement to strengthen its financial flexibility for investments.
The shares of Masimo Corporation (NASDAQ:MASI) rose nearly 13% to $24.02 per share after winning a $466.8 million jury verdict in a patent lawsuit against Koninklijke Philips NV (AMS:PHIA).
Portola Pharmaceuticals Inc (NASDAQ:PTLA) gained almost 16% to $29.32 per share after the company began an underwritten public offering of shares of its common stock to raise approximately $160 million.