Market News: Fitbit, Hewlett-Packard, Molson Coors Brewing Company

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The stock markets in the United States gained today driven by reports regarding transactions in the beer industry and the increase of equity prices in the energy sector.

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In an interview with Bloomberg, George Schultze commented about the market trends and described that the selloff during the last few weeks in August as “draconian.” He added that the market was currently experiencing a “relief rally.”

When it comes to the issue whether the Federal Reserve would raise interest rates, Schultze commented, “If you asked most people in early August, they’d say it’s very likely the Fed would raise rates in mid-September, and I don’t think people will be surprised if they do.”

Today, the Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1% in August. According to the agency the gasoline index dropped while the other energy indexes have mixed results. The food index increased 0.2% last month. The index for all items climbed 0.1% excluding food and energy.


The Federal Reserve is considering many factors including the consumer price index, strength of the labor market, and the recent market volatility in making a decision whether to raise interest rates.

Some investors are speculating that policymaker would delay raising interest rates due to concerns regarding the slowdown of the China’s economy, which is expected to pressure global growth.

Meanwhile, Catherine Mann, the chief economist at the Organization for Economic Cooperation and Development (OECD) commented that the Federal Reserve should start increasing rates this week.
“Do it now to remove uncertainty facing emerging markets, but communicate more clearly the nature of the more gradual path, that’s the message,” said Mann.

U.S. Market

  • Dow Jones Industrial Average (DJIA) – 16, 739.75 (+0.84%)
  • S&P 500- 1,995.23 (+0.87%)
  • NASDAQ- 4,889.24 (+0.59%)
  • Russell 2000- 1,174.83 (+0.76%)

European Markets

  • EURO STOXX 50 Price EUR- 3,251.79 (+1.38%)
  • FTSE 100 Index- 6,229.21 (+1.49%)
  • Deutsche Borse AG German Stock Index DAX- 10,227.21 (+0.38%)

Asia-Pacific Markets

  • Nikkei 225- 18,171.60 (+0.81%)
  • Hong Kong Hang Seng Index- 21,966.66 (+2.38%)
  • Shanghai Shenzhen CSI 300 Index- 3,309.25 (+4.98%)

Stocks in Focus

The stock price of Fitbit increased almost 13% to $37.31 per share. Pacific Crest analyst Brad Erickson initiated an Overweight rating on Fitbit stock with a price target of $47 per share. According to him, Fitbit’s business is “growing ridiculously fast.”

Hewlett-Packard gained 5% to $28.45 per share after the company announced that it would eliminate 30,000 jobs over the next three years as part of its effort to reduce expenses by $2 billion annually.

The stock value Molson Coors Brewing Company surged nearly 14% to $82.70 per share. A report indicated that Anheuser-Busch InBev plans to acquire Molson’s joint-venture partner, SABMiller.


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