The stock markets in the United States ended the trading session with mixed results today. The Down Jones and the SP 500 declined while the NASDAQ and Russell 2000 gained.
The markets worldwide dropped primarily due to concern regarding China’s growth and a potential political crisis in Greece. China announced that some of its lower-rated bonds are no longer usable as collateral for certain short-term loans, which ignited a selloff in riskier debt that spread to government notes and equities. China’s stock market declined more than 4% today.
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In a telephone interview with Bloomberg, Steve Bombardiere, an equity trader at Conifer Securities LLC commented, “This seems like a knee-jerk reaction with China.We’ve had a run up, the market is certainly thinning out as we get closer to the end of the year and any move is going to be a little exaggerated.”
On the other hand, Chad Morganlander, a money manager at Stifel Nicolaus said, “Effectively the sell-off in Asia has led to broad-based selling across the globe. This short-term decline is thematic of the concern about global growth as well as a potential concern about Federal Reserve action next week.”
- Dow Jones Industrial Average (DJIA) – 17,800.87 (-0.29%)
- S&P 500- 2,059.41 (-0.04%)
- NASDAQ- 4,766.16 (+0.54%)
- Russell 2000- 1,184.90 (+1.52%)
- EURO STOXX 50 Price EUR- 3,162.77 (-2.69%)
- FTSE 100 Index- 6,529.47 (-2.14%)
- Deutsche Borse AG German Stock Index DAX- 9,793.71 (-2.21%)
- Nikkei 225- 17,813.38 (-0.68%)
- Hong Kong Hang Seng Index- 24,485.83 (-2.34%)
- Shanghai Shenzhen CSI 300 Index- 3,106.91 (-4.49%)
Stocks in Focus
The stock price of Lululemon Athletica inc. (NASDAQ:LULU) gained more than 6% to $47.68 per share today. The stock was upgraded from “Market Perform” to “Outperform” by Wells Fargo Securities analyst Paul Lejuez.He also raised his price target for the stock in the range of $50-$54 per share.
In a note to investors, Lujuez noted that Lululemon improved its supply chain and merchandise margins near an inflection point and the management will be able to refocus on the company’s growth story.
T-Mobile US Inc (NYSE:TMUS) declined more than 8% to $25.93 per share after the company announced its public offering of approximately 17.4 million shares of mandatory convertible stock with a liquidation preference of $50 per share.
The shares of Spirit Airlines Incorporated (NASDAQ:SAVE) plummeted more than 12% to $73.80 per after the company expected to generate lower profits in the fourth quarter. Its adjusted operating margin for the quarter is expected to be around 18% to 19%.