The stock markets in the United States rebounded today after experiencing sell-off over the past two days. September is historically the worst month for the S&P 500, which declined 3.8% during the previous two trading sessions, according to Bloomberg.
Stephen Carl, a principal and head equity trader at Williams Capital Group commented, “China’s going to be closed the next few days, and that means there won’t be this negative lead-in to markets in the morning so that will be a nice reprieve.”
Carl also noted that investors will certainly continue to talk about the issue as to when the Federal Reserve would raise the interest rates. According to him, “With the recent volatility in the market situation overseas, people don’t have much conviction on when it will be.”
China’s currency devaluation ignited concerns regarding the global economic growth, which resulted to a stock market selloff around the world that wiped out $5.7 trillion in equity market values.
Teis Knuthsen, CIO of private banking unit at Saxo Bank A/S said, “Volatility will stay high for a while. China is still making people panic, and a lot of us are concerned that we’ll break the lows from last week. But many companies are starting to look very cheap now, and the market will eventually find a support level, especially if the Fed doesn’t raise rates this month.”
Today, the ADP Research Institute reported that the U.S. economy created 190,000 jobs in August, below the 200,000 estimated by economists polled by Bloomberg. The Department of Labor is scheduled to release its jobs report on Friday.
- Dow Jones Industrial Average (DJIA) – 16,058.85 (-2.84%)
- S&P 500- 1,948.85 (+1.83%)
- NASDAQ- 4,749.98 (+2.46%)
- Russell 2000- 1,140.44 (+1.10%)
- EURO STOXX 50 Price EUR- 3,198.86 (+0.32%)
- FTSE 100 Index- 6,083.31 (+0.41%)
- Deutsche Borse AG German Stock Index DAX- 10,048.05 (+0.32%)
- Nikkei 225- 18,095.40 (-0.39%)
- Hong Kong Hang Seng Index- 20,934.94 (-1.18%)
- Shanghai Shenzhen CSI 300 Index- 3,365.83 (+0.11 %)
Stocks in Focus
The stock price of Biogen climbed 3.64% to $303.14 per share after the Patent Trial and Appeal Board of the USPTO rejected the petition of Kyle Bass to review its patent on Tecfidera, its top-selling drug for multiple sclerosis.
Vera Bradley gained more than 27.23% to $13.26 per share. The company reported financial results for the second quarter that exceeded the expectations of Wall Street analysts. Its earnings were $0.15 per share on $120.7 million revenue. Analysts expected the company to deliver earnings of $0.11 per share on $114.99 million revenue.
Ariad Pharmaceuticals plummeted 17.21% to $7.53 per share due to the report that Baxalta abandoned its negotiations regarding a takeover bid. The companies disagreed on the acquisition price, and Baxalta received negative feedbacks from investors regarding its proposed takeover of Ariad.