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 35.41 0.14 0.40 8,640,824 Trade
SPLS Staples Inc. 8.50 -0.02 -0.28 1,673,386 Trade
TGT Target Corporation 53.20 0.06 0.11 1,540,145 Trade
CSCO Cisco Systems Inc. 34.21 0.25 0.74 5,361,450 Trade
VZ Verizon Communications Inc. 49.63 -0.01 -0.02 2,764,121 Trade
HPQ HP Inc. 17.33 0.12 0.70 1,994,611 Trade
ANF Abercrombie & Fitch Company 11.35 0.10 0.89 617,198 Trade
MU Micron Technology Inc. 28.88 2.41 9.10 68,937,715 Trade
BBRY BlackBerry Limited 7.10 -0.01 -0.14 837,176 Trade
JCP J.C. Penney Company Inc. Holding Company 5.55 0.05 0.82 4,415,307 Trade
FOXA Twenty-First Century Fox Inc. 31.65 0.32 1.01 3,761,409 Trade
BTAM Ben-Tam Inc 0.12 0.00 0.00 0

Comments

Emerging Growth

PixarBio Corp

PixarBio Corp is a specialty pharmaceutical/biotechnology company focused on pre-clinical and commercial development of novel neurological drug delivery systems for post-operative pain.

Private Markets

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…

Initial State

Initial State is an Internet of Things (IoT) data analytics & data management platform company. We turn sensor and event data into information that matters by making it easy to…