Wall Street Ends Lower As Taper Looms Large

Michael Teague |

Wall Street ended lower on Friday to cap a week during which indices fell four days out of five, as thin economic data left most of the focus on an emerging picture of a September date for the commencement of the Fed’s drawing down of $85 billion per month in bond purchases.

The Standard & Poor’s 500 index closed the week on a loss of 0.36 percent to 1,691.41 points, while the Dow Jones Industrial Average closed 0.47 percent lower at 15,425.51, and the NASDAQ was 0.25 percent off at 3,660.11.

Worries over comments made by Dallas Federal Reserve Chairman Richard Fisher late on Thursday to the effect that cutbacks to the Fed’s stimulus program would likely begin next month seemed to confirm an increasing sense of unanimity among top central bank officials regarding the future of economic stimulus, as the yield on 10-year Treasury notes dropped 0.27 percent to $2.58.

On a day of relatively light trading, tech stocks weighed on the S&P 500, with a number of companies coming up short including Juniper Networks (JNPR) , AT&T Inc. ($ATT), and Lam Research Company (LRCX) . J.C. Penney (JCP) ended the day nearly 6 percent lower under pressure from the ongoing kerfuffle related to Bill Ackman’s attempts to oust its former/current CEO Myron Ullman.



Basic materials stocks constituted a bright spot for the benchmark index, with industrial metals and minerals companies making up the bulk of the day’s best performers. Cliffs natural Resources (CLF) was up over 10 percent, Peabody Energy Corp. (BTU) was up nearly 8 percent, and United States Steel Corp. (X) was in tow, up over 4 percent.

Aluminum producer Alcoa ($AA) was the Dow’s only real success story of the day, up nearly 4 percent by the closing bell on a day that saw 25 of the index’s 30 components in the red.

On the NASDAQ, NPS Pharmaceuticals (NPSP) ended the day on a gain of 25 percent after the impact of a worse than expected quarterly earnings report was overridden by promising news about upcoming drug treatments. Otherwise, tech shares made for significant downward pressure on the exchange, as Apple (AAPL) dropped 1.4 percent, followed by NVIDIA (NVDA) , Microsoft (MSFT) and Cisco Systems (CSCO) .

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
AA Alcoa Inc. 34.73 -0.05 -0.14 381,119
AAPL Apple Inc. 137.23 0.30 0.22 4,144,555
LRCX Lam Research Corporation 119.06 -0.23 -0.19 278,744
NVDA NVIDIA Corporation 102.67 -1.74 -1.67 3,340,472
CSCO Cisco Systems Inc. 34.24 -0.03 -0.07 2,487,920
BTU Peabody Energy Corp n/a n/a n/a 0
JNPR Juniper Networks Inc. 28.09 -0.24 -0.85 262,680
X United States Steel Corp. 39.52 1.33 3.48 7,141,653
CLF Cliffs Natural Resources Inc 10.80 0.07 0.65 2,992,786
JCP J.C. Penney Company Inc. Holding Company 6.49 -0.15 -2.26 3,931,908
MSFT Microsoft Corporation 64.09 -0.14 -0.22 3,383,769
KJFI Comjoyful International Co 0.18 0.00 0.00 0

Comments

Emerging Growth

Broadway Gold Mining Ltd.

Broadway Gold Mining Ltd is engaged in the exploration of mineral resources. The Company owns a 100% interest in the Madison Gold and Copper Mine located in Southwestern Montana.

Private Markets

Santo Diablo Mezcal

Santo Diablo Mezcal has been created to capitalize on a boom sector of the beverage market currently full of many small unmemorable products by producing one sexy, household, easily recognizable…

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.