Breaking News
0

US STOCKS-Wall St falls after Fed statement, energy shares tumble

Stock MarketsNov 09, 2018 03:00
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. US STOCKS-Wall St falls after Fed statement, energy shares tumble

* S&P extends losses, Dow goes negative after Fed decision

* Energy index tumbles as U.S. crude oil enters bear market

* Bank stocks end higher as yields rise

* Dow up 0.04 pct, S&P falls 0.25 pct, Nasdaq down 0.53 pct

(Updates to close, adds commentary)

By Sinéad Carew

NEW YORK, Nov 8 (Reuters) - The S&P 500 and Nasdaq closed slightly lower on Thursday after a Federal Reserve statement, and energy stocks were the biggest drag on the S&P as U.S. crude oil prices fell.

The U.S. central bank said after its two-day meeting that strong job gains and household spending were keeping the economy on track but business investment "moderated from its rapid pace earlier in the year," creating a possible drag on future economic growth. from the comment about business investments, the Fed statement was largely as expected and suggested to investors that the Fed's next rate hike would be in December. But some investors had hoped for a change in tone after October's market sell-off.

"The Fed has recognized that there is one part of the economy that is slowing a little bit, but it is not deterring them from their 'gradual increase' language. Not yet anyway,” said Jamie Cox, managing partner at Harris Financial Group, Richmond, Virginia.

"There is really nothing to point to what the market had hoped, that there would be a more dovish stance. So I think this is more of what we call a hawkish hold.”

The Dow Jones Industrial Average .DJI rose 10.92 points, or 0.04 percent, to 26,191.22, the S&P 500 .SPX lost 7.06 points, or 0.25 percent, to 2,806.83 and the Nasdaq Composite .IXIC dropped 39.87 points, or 0.53 percent, to 7,530.89.

The three indexes had all risen 2 percent in the previous day's session due to a relief rally once the U.S. midterm congressional elections were in the rearview mirror.

Quincy Krosby, chief market strategist at Prudential Financial (NYSE:PRU) in Newark, New Jersey said companies were holding off on spending because of uncertainty over a U.S.-China trade war.

"A slowdown in business spending can slow the underpinning of the stock market,” Krosby said. "Is the Fed data-dependent or is it maintaining a rigid schedule for rate hikes in 2019? What would cause the Fed to pause? It's clear from this statement today that they're looking at anything that could potentially slow the economy."

The S&P bank index .SPXBK ended the day with a 0.4 percent gain as U.S. Treasury yields rose because bank profits benefit from rising rates. stocks were the S&P's biggest drag with a 2.2 percent drop as U.S. crude oil futures CLc1 confirmed a bear market, falling more than 20 percent from their Oct. 3 high as investors focused on swelling global crude supply, which is increasing more quickly than many had expected. O/R

The Wall Street Journal reported that Saudi Arabia's top government-funded think-tank is studying the possible effects on oil markets of a breakup of OPEC in a story citing unnamed people familiar with the matter. issues outnumbered advancing ones on the NYSE by a 1.26-to-1 ratio; on Nasdaq, a 1.18-to-1 ratio favored decliners.

The S&P 500 posted 33 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 76 new highs and 81 new lows.

On U.S. exchanges 7.23 billion shares changed hands compared with the 8.43 billion average for the last 20 sessions.

US STOCKS-Wall St falls after Fed statement, energy shares tumble
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email