Stock markets in the United States went back to the downside after regaining from a three-day losing streak yesterday. It seems investors are still weighing and cautious about reports that the Federal Reserve will start cutting its quantitative easing (QE) or bond-buying program. Investors also retrieved their investments from exchange-traded funds (ETFs), according to Bloomberg.
Chris Bouffard, chief investment officer of Mutual Fund Store commented, “It’s been a combination of tapering and just trying to digest the new highs. It’s been a slow news week. It’s just a matter of the normal digestion process and people trying to get comfortable with how quickly and how far we’ve come.”
On the other hand, Michael Strobaek, chief investment officer of Credit Suisse in Zurich, opined that the “fundamental environment remains attractive, but the markets are overbought in the wake of the recent rally.” Global stocks climbed to a five-year high. Credit Suisse perceived limited upside in the near future and that the combination of a positive outlook and a further supportive monetary policy seemed hugely priced in the markets.
Meanwhile, President Barack Obama said unemployment and economic growth are still major concerns during a press conference today.
U.S. Markets
- Dow Jones Industrial Average (DJIA)- 15, 421 (-0.50%)
- S&P 500- 1,691 (-0.38%)
- NASDAQ- 3,659 (-0.25%)
- Russell 2000- 1,049 (+0.01%)
European Markets
- EURO STOXX 50 Price EUR- 2,825 (+0.31%)
- FTSE 100 Index- 6,583 (+0.82%)
- Deutsche Borse AG German Stock Index DAX- 8,338 (+0.24%)
Asia Pacific Markets
- Nikkei 225- 13,615 (+0.07%)
- Hong Kong Hang Seng Index- 21,807 (+0.70%)
- Shanghai Shenzhen CSI 300 Index- 2,286 (+0.41%)
Stocks In Focus
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) gained as much as 7.5% to $9.92 per share, its highest level this month after Reuters reported that the Canadian smartphone manufacturer is considering the idea of seeking a buyer to take the company private, based on information from unidentified sources. The company also announced that the U.S. Department of Defense granted BlackBerry with the Authority to Operate (OTA) on its networks after its devices, the BlackBerry Q10 and BlackBerry Z10, met stringent security requirements.
The stock price of Cliffs Natural Resources, Inc (NYSE:CLF) reached as high as $24.75 per share, an increase of 11% driven by an improvement in China’s production data (+9,7%) for month of July. Earlier this month, the company reached a tentative agreement with United Steelworkers Union for a new three-year labor contract.
GAP, Inc (NYSE:GPS) declined by nearly 3% to around $44.20 per share after the company reported disappointing sales performance. Its same store sales increased by 1 percent; lower than the consensus estimate of Wall Street analysts.
JC Penney Company (NYSE:JCP) dropped by more than $5.78 to $12.87 per share after the board of directors of the company rejected the decision of Bill Ackman, one of the largest shareholders of the company, to search for a new CEO to replace Mike Ullman. Yesterday, the stock price of the company surged as high as $13.33 per share. Today, Perry Capital disclosed his acquisition of a 7.26% stake in the department store chain. The hedge fund urged the board of the company to be proactive and take immediate steps to improve the operational and financial management of the company.
The stock value of Ubiquiti Networks, Inc (NASDAQ:UBNT) rose by almost 25% to $26.40 per share after the company posted positive financial results. The company reported $101.1 million revenue, up by 7% and $0.33 earnings per share, an increase of 10%. The earnings results of the company beat the expectations of Wall Street analyst at $93.3 million revenue and $0.27 earnings per share.
