Market News: Facebook, Fiat Chrysler Automobiles, MCG Capital

Market News: Facebook, Fiat Chrysler Automobiles, MCG Capital
market news

The stock markets in the United States declined after the Federal Reserve confirmed its decision to end the bond-buying program, an indication that the country’s economic growth is on a stable direction.

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Policy makers stated that labor market conditions “improved somewhat further” and a range of indicators suggest that the “under-utilization of labor resources is gradually diminishing.”

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The Federal Reserve also reiterated its commitment to maintain low interest rates for a considerable time, which is expected by a majority of economists.

In a telephone interview with Bloomberg Anthony Valeri, a market strategist at LPL Financial LLC commented, “The statement was a little bullish on the economy and if anything, on the hawkish side, just because of the nod to the improvement in the labor market.”


Valeri added, “The expectation going in was the Fed would probably be dovish to minimize market reaction but instead they’re optimistic, which has resulted in slightly higher bond yields and equities down here.”

The Federal Reserve indicated that energy prices would probably affect the inflation, and maintained its previous statement that the “the likelihood of inflation running persistently below 2 percent has diminished somewhat.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 16,974.31 (-0.18%)
  • S&P 500- 1,982.31 (-0.14%)
  • NASDAQ- 4,549.23 (-0.33%)
  • Russell 2000- 1,147.56 (-0.17%)

European Markets

  • EURO STOXX 50 Price EUR- 3,022.42 (-0.45%)
  • FTSE 100 Index- 6,453.87 (-0.81%)
  • Deutsche Borse AG German Stock Index DAX- 9,082.81 (+0.16%)

Asia-Pacific Markets

  • Nikkei 225- 15,553.91 (+1.38%)
  • Hong Kong Hang Seng Index- 23,819.87 (+1.27%)
  • Shanghai Shenzhen CSI 300 Index- 2,451.38 (+1.44%)

Stocks in Focus

The stock price of Facebook Inc (NASDAQ:FB) declined more than 6% to $75.86 per share despite reporting better than expected financial results for the third quarter. CEO Mark Zuckerberg stated that the social network giant will continue its aggressive spending on new technologies. The company’s CFO David Wehner also emphasized that the company will incur higher expenses than normal over the next quarters due to significant investments in acquisitions and engineering talents.

The shares of Fiat Chrysler Automobiles NV (NYSE:FCAU) closed %10.85 per share, up more than 11% driven by its announcement regarding its plan to spin off Ferrari, its luxury sports unit.

MCG Capital Corp (NASDAQ:MCGC) surged more than 18% to $3.60 per share after the company announced its intention to repurchase $75 million worth of its common stock through a modified Dutch auction tender offer.


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