The stock markets in the United States declined primarily due to a selloff in retail sales amid reports on corporate mergers today. Macy’s led the selloff in the retail industry as investors were disappointed with its quarterly financial performance.
Currently, investors are evaluating the potential impact of higher interest rate in the United States. The Federal Reserve is likely to raise interest rates in December since the labor market recorded a robust growth last month. Traders forecasted a 68% probability for December rate hike.
The Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More
In an interview with Bloomberg, Veronika Pechlaner, an investment manager at Ashburton Investments commented, “Rate expectations for December have ticked up quite a bit. After the initial weakness following the payroll print, the market is taking it in its stride, and that’s good news. It’s going to be a wait-and-see development for the market where the positive seasonal trend is fighting with specific action around rates.”
On the other hand, James Gaul, a portfolio manager at Boston Advisors said that market appears to be quiet because there are “no obvious catalysts right now” and the earnings season is almost over. He added, “There’s a lot of news behind us and not a lot of potentially market-moving news ahead of us in the short term. Today might just be a little bit of a digestion day.”
- Dow Jones Industrial Average (DJIA) – 17, 702.22 (-0.32%)
- S&P 500- 2,075.00 (-0.32%)
- NASDAQ- 5,067.02 (-0.32%)
- Russell 2000- 1,179.29 (-0.71%)
- EURO STOXX 50 Price EUR- 3,448.42 (+0.67%)
- FTSE 100 Index- 6,297.20 (+0.35%)
- Deutsche Borse AG German Stock Index DAX- 10,907.87 (+0.70%)
- Nikkei 225- 19,691.39 (+0.10%)
- Hong Kong Hang Seng Index- 22,352.17 (-0.22%)
- Shanghai Shenzhen CSI 300 Index- 3,833.65 (+0.01%)
Stocks in Focus
The stock price of Macy’s plummeted nearly 14% to $40.44 per share. The largest department store operator in the United States reported earnings of $0.36 on $5.87 billion in revenue, down from $6.19 billion in the same period last year. Macy’s recorded the most revenue decline since 2010.
Boston Scientific declined more than 4% to $18.01 per share. The company’s Watchman left appendage closure device, which is used to close a portion of the heart where deadly blood clots can form, failed to obtain extensive reimbursement coverage from Medicare.
Molson Coors Brewing Company gained more than 4% to $92.19 per share. The company plans to acquire full control of the Miller and Coors brands globally for $12 billion. Molson Coors CEO Mark Hunter said the acquisition will provide significant incremental scale and take the company in a number of new markets.