The stock markets in the United States gained today except the Dow Jones Industrial Average (DJIA), down by 0.01%. The S&P 500 rose 0.17%, the NASDAQ climbed 0.32% and the Russell 2000 gained 1.06%.
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According to Bloomberg, the value of U.S. equities declined approximately $744 billion since October 8 due to investors’ concern regarding the slowdown of the global economic growth.
The U.S. stock markets experienced the worst three day selloff since 2011, which was caused by the decline of equities of energy companies amid lower oil prices. The Brent crude oil dropped 4.2%, its lowest level in four years. Yesterday’s selloff was primarily impacted by the decline of airline stocks due to Ebola concerns. Today, airline stocks rebounded 6.1%.
John Canally, an economic strategist at LPL Financial told Bloomberg, “Yesterday’s late-day selloff was bordering on the irrational. There was no news or earnings, and thin trading. It’s encouraging that the first few earnings reports we’ve gotten have been solid.” He emphasized that earnings would “ultimately drive stock performance.”
[drizzle]U.S. Markets
- Dow Jones Industrial Average (DJIA) – 16,319.37 (-0.01%)
- S&P 500- 1,877.84 (+0.17%)
- NASDAQ- 4,227.17 (+0.32%)
- Russell 2000- 1,060.41 (+1.06%)
European Markets
- EURO STOXX 50 Price EUR- 3,000.99 (+0.09%)
- FTSE 100 Index- 6,392.68 (+0.42%)
- Deutsche Borse AG German Stock Index DAX- 8,825.21 (+0.15%)
Asia-Pacific Markets
- Nikkei 225- 14,936.51 (-2.38%)
- Hong Kong Hang Seng Index- 23,047.97 (-0.41%)
- Shanghai Shenzhen CSI 300 Index- 2,446.56 (-0.34%)
Stocks in Focus
The stock price of Burberry Group plc (OTCMKTS:BURBY) (LON:BRBY) declined more than 4% to $45.01 per share in New York. The largest luxury-goods manufacturer in the United Kingdom warned that a more difficult environment is expected to result in a slight downward pressure on its retail /wholesale margin. Burberry reported that its revenue for first-half of fiscal 2014 increased 14% to £1.1 billion.
Citigroup Inc (NYSE:C) rose more than 3% to $51.47 per share after the company reported better than expected third-quarter earnings results. Citigroup reported that its net income increase to $1.07 per share from $1.00 in the year-ago quarter. Its revenue was $19.6 billion compared with the $19 billion consensus estimate.
The shares of Iliad SA (EPA:ILD) gained more than 9% to €171.10 after the company decided to abandon its efforts to acquire a majority stake in T-Mobile US Inc (NYSE:TMUS). Deutsche Telekom AG (ETR:DTE), the parent company of T-Mobile refused to entertain Iliad’s new offer.
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