The stock markets in the United States declined today except NASDAQ as investors evaluate the recent rally before the meeting of the Federal Reserve, and the release of another batch of corporate earnings.
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Last week, technology giants Alphabet, the parent holding company of Google; Amazon.com, and Microsoft led the market rally after reporting quarterly earning that exceeded the expectations of Wall Street analysts.
In an interview with Bloomberg, Thomas Garcia, head of equity trading at Thornburg Investment Management commented, “There are some pretty big earnings this week, so people will be watching what companies say about the third quarter. He added that investors will also pay attention to corporate outlooks.
Furthermore, Mr. Garcia said investors are “not expecting the Fed to move,” but everyone will weigh the language of the Fed to determine whether policymakers are still on track to raise interest rates this year. The central bank is expected to discuss a potential rate hike during their meeting this week.
The People’s Bank of China reduced its interest rates last week while the European Central Bank (ECB) indicated its intention to boost stimulus to support economic growth.
Today, the U.S. Department of Commerce reported that the sales of new homes declined 11.5% to 468,000 units in September. Economists polled by Bloomberg expected a 549,000 sales rate.
Mike Englund, chief economist at Action Economics, commented, “We assume credit availability remains a major problem for the market. We see a broad, slow but positive growth pace for the housing sector.”
The purchases of existing homes increased 4.7% to 5.55 million units at an annual rate in September. Further improvement in the market is necessary to support the U.S. economic growth amid the slowing growth overseas.
- Dow Jones Industrial Average (DJIA) – 17, 623.05 (-0.13%)
- S&P 500- 2,071.18 (-0.19%)
- NASDAQ- 5,034.70 (+0.06%)
- Russell 2000- 1,159.02 (-0.60)
- EURO STOXX 50 Price EUR- 3,414.60 (-0.33%)
- FTSE 100 Index- 6,417.02 (+0.42%)
- Deutsche Borse AG German Stock Index DAX- 10,801.34 (+0.06%)
- Nikkei 225- 18,947.12 (+0.65%)
- Hong Kong Hang Seng Index- 23,116.25 (-0.15%)
- Shanghai Shenzhen CSI 300 Index- 3,589.26 (+0.50%)
Stocks in Focus
The stock price of Apple declined more than 3% to $115.28 per share. A class action lawsuit was filed against the company in connection wit the Wi-Fi Assist feature integrated into the iOS 9.
Chesapeake Energy dropped almost 9% to $7.13 per share.There is no other major reason for the decline aside from the decline of crude oil prices and the weakness of the energy sector.
JetBlue Airways climbed almost 5% to $26.21 per share before the release of earnings tomorrow. Analysts expect the company to post strong earnings of $0.57 per share and $1.68 billion in operational revenue, a 10.2% growth year-over-year.