Housing Data and Fed Minutes Send Wall Street Lower

Michael Teague |

Equities.com’s George Brooks began the Wednesday by asking if the market could shake off the disappointing housing data that was released ahead of the opening bell, and he got his answer from Wall Street in the form of a resounding “no.” The Department of Commerce’s report on housing starts for the month of January showed that new construction had contracted by 16 percent during the period, the latest in a series of indications that the US economic recovery may be in question.

While the housing news could reasonably be explained by the extremely harsh US winter, it was exacerbated by the release of the minutes from the previous month’s Federal Open Market Committee meeting. Investors were unnerved by what appears to be considerable disunity among board members, who are now confronted with the delicate balancing act of keeping interest rates low while simultaneously implementing further reductions to Treasury spending, sending stocks significantly lower across the board.

The Day’s Results

●     Standard & Poor’s 500: -0.65 percent to 1828.75

●     Dow Jones Industrial Average: -0.56 percent to 16,040.56

●     NASDAQ: -0.82 percent to 4,237.95

Equities.com’s Top Stories

●     Andrew Klips has the details of the $690 million Signet Jewelers Ltd. (SIG) acquisition of rival Zale Corp. (ZLC) .

●     Small-cap biotech firm Chelsea Therapeutics International (CHTP) added nearly 25 percent on the day after the FDA approved its blood pressure treatment, Northera. Senior Editor Joel Anderson has the story.

●     Senior Editor Jacob Harper takes a look at the inflating bubble that is micro-cap IT provider/daily deals site LiveDeal (LIVE) , a company whose stock is approaching six-bagger status in 2014 alone.

●     Benjamin Cox, managing director of the commodities exploration research firm Oreninc discusses HudBay Minerals Inc.’s (HBM) attempt to buy out Augusta Resource Corporation (AZC) .

●     Upstream oil and gas service provider Nabors Industries (NBR) ended the day over 13 percent higher after beating EPS expectations for its fourth-quarter of 2013, thanks in large part to huge strides in international operations. Senior Editor Michael Teague has the specifics.

●     In case you missed it on Tuesday, Jacob Harper chimed in with an interesting piece on the ostensibly dismal future of the payday loan industry.

On the S&P 500

The day’s selling activity hit a number of sectors, with United States Steel Corp. (X) off by 7 percent, while mega drug manufacturer Pfizer Inc. (PFE) was off by over one percent. Financials were hit particularly hard, with Citigroup (C) , JPMorgan Chase (JPM) , and Bank of America (BAC) down substantially on heavy trading as well.

On the Dow

Verizon (VZ) and Chevron (CVX) were the only real signs of life among the Dow Industrials, 24 of whose components ended the day in the red. Boeing Co. (BA) , Home Depot (HD) , and Merck & Co. (MRK) joined JPMorgan and Pfizer as the day’s biggest losers.

 

On the NASDAQ

Despite the impressive 25 percent gains for Chelsea Therapeutics, it was a sad day for the exchange, and tech shares unequivocally led the way down. Microsoft (MSFT) , Intel (INTC) , Groupon (GRPN) and Plug Power Inc. (PLUG) all suffered heavy losses. Generic drug-maker Mylan ($MYL), provided a lonely counterpoint, joining the big-pharma rally with gains of nearly 6 percent.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
NBR Nabors Industries Ltd. 16.62 -0.08 -0.48 6,242,708
CVX Chevron Corporation 115.81 0.64 0.56 5,771,551
HBM Hudbay Minerals Inc (Canada) 7.05 -0.15 -2.08 734,736
INTC Intel Corporation 35.76 0.06 0.17 16,326,925
C Citigroup Inc. 60.04 -0.11 -0.18 22,804,941
JPM JP Morgan Chase 85.49 0.37 0.43 14,567,202
LIVE Live Ventures Incorporated 17.86 -0.63 -3.41 117,250
SIG Signet Jewelers Limited 98.72 0.67 0.68 1,782,235
VZ Verizon Communications Inc. 51.49 0.36 0.70 10,101,462
BAC Bank of America Corporation 23.09 0.14 0.61 130,590,406
X United States Steel Corp. 36.06 -1.31 -3.51 16,775,691
HD Home Depot Inc. (The) 133.39 0.86 0.65 5,174,577
PFE Pfizer Inc. 31.70 0.76 2.46 29,350,843
BA Boeing Company (The) 156.49 1.10 0.71 2,707,872
MRK Merck & Company Inc. (new) 61.23 1.11 1.85 10,516,352
GRPN Groupon Inc. 3.87 -0.02 -0.51 14,430,059
MYL Mylan N.V. 36.51 0.45 1.25 6,118,816
MSFT Microsoft Corporation 61.97 0.96 1.57 27,349,356
PLUG Plug Power Inc. 1.43 -0.10 -6.54 4,702,993
AHNR Athena Silver Corp 0.06 -0.04 -38.14 436

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