Apple shares lose steam going into close after unveiling new products and services
US stocks ended in the red on Tuesday, 09 September 2014 at Wall Street. Equity indices spent the entire session in the red with the early pressure coming from the financial sector. The second-largest group by market cap slumped out of the gate amid broad weakness in top-weighted components. Losses were further pressured by stocks in utilities and telecom sectors.
The Dow Jones Industrial Average dropped 97.55 points, or 0.6%, to 17,013.87. The Nasdaq Composite shed 40 points, or 0.9%, to 4,552.29. The S&P 500 closed 13.1 points, or 0.7%, at 1,988.44.
Eight out of ten sectors ended in the red. Consumer staples and healthcare sectors were only winners.
Bank of America, Citigroup and JPMorgan Chase lost between 1.3% and 1.5%, while the financial sector acted as a drag on the market throughout the session.
Fluctuation in Apple Inc's shares contributed to the choppy session on Wall Street, as the tech group is the heaviest weighted stock on the S&P 500 and Nasdaq. Apple unveiled iPhone 6, ApplePay and Apple Watch and shares rose as high as 3.5%, but lost ground after the event and closed lower.
Also Read
Among other stocks, McDonald's shares fell 1.5% after the fast-food restaurant chain said global comparable sales fell 3.7% in August and blamed several headwinds for the decline. The company warned that problems with a supplier in China will hurt third-quarter results.
Shares of Annie's rose 38%, on the heels of a similar late-session rally after General Mills offered to buy the organic-foods company for $820 million in cash.
Early, tepid short covering gave way to more technical selling pressure.Focus is on the currency markets this week, where the U.S. dollar index has hit a 14-month high, while the Euro currency has slumped to a 14-month low. Diverging economies and monetary policies in the U.S. and the European Union are prompting their currencies to trend in opposite directions.
The strong U.S. dollar has been a bearish outside market force working against most of the raw commodity sector recently, including gold and silver. The deflating Euro currency has also been a negative for raw commodities, due to the concerns in the EU regarding the potential for sustained deflationary consumer and producer price pressures.
Economic data at Wall Street was limited to the Job Openings and Labor Turnover Survey for July, which indicated job opening decreased to 4.673 million from 4.675 million.
On the geopolitical front there have been no major, markets-moving developments the past several days. The Russia-Ukraine cease-fire appears to be generally holding. New sanctions against Russia are set to be implemented by the European Union this weekmostly eliminating the ability of Russian businesses to raise capital in Europe.
Bullion prices ended the U.S. day session modestly lower on Tuesday, 09 September 2014 at Comex. Gold hit a three-month low on Tuesday. Gold dropped for a second session on Tuesday on expectations that the Federal Reserve may tighten monetary policy sooner than expected.
Gold for December delivery slid $5.80, or 0.5%, to settle at $1,248.50 an ounce. December silver fell 4 cents at $18.84 an ounce.
U.S. crude-oil futures held on to modest gains on Tuesday, 09 September 2014 at Nymex ahead of supply data expected to show a drawdown in crude inventories and as prices clawed back from multi-month lows in the previous session.
Light, sweet crude futures for delivery in October rose 9 cents, or 0.1%, to settle at $92.75 a barrel on the New York Mercantile Exchange.
The moves came ahead of a weekly supply update from the American Petroleum Institute, due late Tuesday, and the more closely watched report from the Energy Information Administration, due Wednesday. U.S. commercial crude-oil stocks are expected to have fallen 1 million barrels during the week ended 5 September 2014.
The yield on the 10-year Treasurys rose 3 basis points to 2.5%, its highest since the beginning of August on a closing basis.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while the Wholesale Inventories report for July (consensus 0.5%) will cross the wires at 10:00 ET.
Powered by Capital Market - Live News