Wall Street Hiccups After FOMC Minutes

Michael Teague |

Stocks ended significantly lower on Wednesday as existing home sales jumped 6.5 percent to a four-month high, and the released minutes of the Fed’s July Open Market Committee meeting indicating more or less unanimous agreement among central bankers on the need to reduce stimulus spending.

Still, the minutes from last month’s meeting ultimately gave little guidance to the possible timing for such a move, as an agreement over the need to reduce spending was tempered by concerns that September would be too soon to do so. Markets and financial media have been frenetically speculating when “tapering” could begin over the last few months, though the Fed has repeatedly and clearly stated the inflation and unemployment targets that it considers would adequately reflect the improvements it would like to see before asset and securities purchases can be reduced.

The Standard & Poor’s 500 ended 0.58 percent lower to close at 1,642.80, with the Dow Jones Industrial Average off by 0.7 percent to 14,897.55, while the NASDAQ dropped 0.38 percent to 3,599.79.

The volatile trading session saw stocks open lower, then rally significantly before eventually shedding gains as the yield on 10-year Treasury bonds jumped nearly 1.5 percent to $2.85.



On the S&P 500, Staples Inc. (SPLS) ended the day on a hefty 15 percent loss after its second quarter earnings report saw the company come up shy on profit expectations as well as reduced guidance for the remainder of the year. Brick-and-mortar services stocks were the biggest drag on the index overall, with significant losses for PetSmart Inc. (PETM) , J.C. Penney Company Inc. (JCP) , Target Corp. (TGT) and Abercrombie & Fitch Co. (ANF) .

All of the Dow’s components were in the red for the second time this week, with tech shares among the biggest losers, as Hewlett-Packard (HPQ) , Intel Corporation (INTC) , and Verizon Communications Inc. (VZ) all ended the day significantly lower.

Tech and Services shares were also lower on the NASDAQ, with Cisco Systems (CSCO) , Micron Technology (MU) , BlackBerry (BBRY) , Comcast ($CMCS), DIRECTV Inc. (DTV) and Twenty-First Century Fox Inc. (FOXA) all dropping on heavy trading.

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
INTC Intel Corporation 40.43 0.34 0.85 18,335,672 Trade
SPLS Staples Inc. n/a n/a n/a 0 Trade
TGT Target Corporation 61.76 1.33 2.20 6,053,790 Trade
CSCO Cisco Systems Inc. 34.25 0.50 1.48 24,361,352 Trade
VZ Verizon Communications Inc. 49.53 0.32 0.65 16,259,580 Trade
HPQ HP Inc. 22.02 0.06 0.27 8,621,009 Trade
ANF Abercrombie & Fitch Company 13.76 0.36 2.69 1,584,058 Trade
MU Micron Technology Inc. 41.50 0.19 0.46 36,293,718 Trade
BBRY BlackBerry Limited n/a n/a n/a n/a
JCP J.C. Penney Company Inc. Holding Company 3.61 0.12 3.44 9,996,114 Trade
FOXA Twenty-First Century Fox Inc. 27.50 0.13 0.47 8,879,892 Trade
BTAM Ben-Tam Inc 0.09 0.00 0.00 0

Comments

Emerging Growth

Beleave Inc.

Beleave Inc is a biotech company. The Company is engaged in the production of medical marijuana under the Marihuana for Medical Purposes Regulations outlined by Health Canada.

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

Quants Inc

Quants, Inc, a California Corporation, develops, markets and operates financial technology platforms and alternative investment products offering sophisticated risk management since 2010. The Company has primarily sharpened its focus with…