Wall Street Braces for Budget Battle, Stocks Drop Again

Michael Teague |

Stocks ended lower heading into the weekend as investors held their breath amid what promises to be a chaotic partisan battle in Washington DC over the federal budget.

The Standard & Poor’s 500 index was off 0.41 percent, closing the day at 1,691.75 points, while the Dow Jones Industrial Average ended 0.46 percent lower to 15,258.24, and the NASDAQ lost 0.15 percent to 3,781.59.

Friday’s economic data points consisted of the Department of Commerce’s consumer spending index that showed Americans spending more money in August for the fourth consecutive month, bolstered by a sharp 0.4 percent rise in personal income. At the same time, the University of Michigan’s index of consumer sentiment dropped significantly from July’s reading of 82.1 to an August reading of 77.5, half a basis point shy of expectations.

 J.C. Penney suffered the S&P 500’s most heavily traded loss on the day, hemorrhaging another 13 percent of its share price amid serious doubts about the company’s future. The company dropped about 30 percent during the week.



Major chemicals manufacturers Air Products & Chemicals Inc. (APD) and Dow Chemical Group (DOW) also ended the day lower, along with others in the basic materials sector, such as Cliff’s Natural Resources (CLF) and United States Steel Corp. (X) . On the upside, Nike (NKE) gained nearly five percent after releasing another strong earnings report.

Tech shares kept the Dow lower, with the index’s three worst performers being Cisco Systems (CSCO) , Intel Corporation (INTC) , and IBM Corp. (IBM) taking heavy losses.

Shipping stocks ran ashore on the NASDAQ after what had looked to be an incredible week. NewLead Holdings Ltd. (NEWL) dropped nearly 20 percent, followed by FreeSeas Inc. (FREE) and DryShips Inc. (DRYS) . Apple (AAPL) created some pressure by shedding nearly 1 percent.

Former smartphone leader BlackBerry (BBRY) ended the day up 1 percent after releasing a third-quarter earnings report earlier in the day that showed the company besting what were admittedly dismal analyst expectations. The company is expected to be taken private in the near future by Canadian investment firm Fairfax Holdings Ltd.

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
APD Air Products and Chemicals Inc. 161.57 -0.01 -0.01 696,157 Trade
FREE FreeSeas Inc n/a n/a n/a n/a
DRYS DryShips Inc. 4.15 0.29 7.51 4,340,741 Trade
INTC Intel Corporation 44.62 -0.01 -0.02 22,420,003 Trade
IBM International Business Machines Corp 150.51 1.54 1.03 5,676,495 Trade
AAPL Apple Inc. 169.98 -0.17 -0.10 16,262,447 Trade
CSCO Cisco Systems Inc. 36.50 0.60 1.67 26,897,844 Trade
X United States Steel Corp. 27.85 0.57 2.09 9,045,508 Trade
CLF Cliffs Natural Resources Inc 6.17 0.04 0.65 5,643,735 Trade
BBRY BlackBerry Limited n/a n/a n/a n/a
MJDS Mojo Data Solutions Inc 0.00 0.00 0.00 0

Comments

Emerging Growth

Margaux Resources Ltd.

Margaux Resources Ltd is a Calgary based resource company. The Company is focused on its Jersey Emeral Tungsten-Zinc property located in the southeast portion of British Columbia.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

The Green Organic Dutchman

The Green Organic Dutchman Ltd. ("TGOD") produces farm grown, organic cannabis for medical use. The company grows its high quality organic cannabis in small batches using craft growing, all natural…