US close: Markets end lower as investors digest Fed meeting, economic data


US close: Markets end lower as investors digest Fed meeting, economic data

Fri, 22 September 2017
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US close: Markets end lower as investors digest Fed meeting, economic data

(ShareCast News) - Stocks finished lower on Thursday, as traders tried to work out the implications of the US central bank's policy announcement on Wednesday, despite a raft of better-than-expected readings on the economy.
The Dow Jones Industrial Average closed down 0.24% at 22,359.23, the S&P 500 was off 0.3% at 2,500.60, and the Nasdaq 100 finished 0.65% softer at 5,934.91.

Overnight, the Fed stood pat on interest rates, as expected, while Chair Janet Yellen confirmed the central bank will start winding down its $4.5trn balance sheet in October and suggested that one more rate increase is likely by the end of the year.

Analysts appeared to be somewhat in agreement that the Federal Open Market Committee delivered a 'hawkish' surprise with regards to expectations for an interest rate hike in December, but a 'dovish' surprise in terms of its medium-term outlook.

In her post-meeting press conference Fed chief Janet Yellen appeared to downplay the downtrend in core inflation year-to-date and appeared to put forth an explanation for the divergence between market-pricing for Fed hikes and rate-setters' own projections.

Commenting on the Fed's decisions, analysts at Goldman Sachs led by Jan Hatzius said: "The near-term message from the FOMC was hawkish, with 12 out of 16 participants projecting a third 2017 rate hike, upgrades to the GDP and employment forecasts, and continued skepticism from Chair Yellen about the significance of the weaker-than-expected core inflation numbers.

"We have consequently upgraded our subjective probability of a rate hike in December from 60% to 75%."

In economic news, the Philly Fed's regional manufacturing gauge jumped rose from a reading of 18.9 for August to 23.8 in September (consensus: 17.0).

Initial jobless claims fell by 23,000 to 259,000 during the week ending on 16 September, according to the Department of Labor.

On the corporate front, carbon materials group Calgon Carbon rocketed 62.12% after the company agreed to be bought by Japanese chemical manufacturer Kuraray Co for $1.1bn.

Also high on the Big Board, shares of Transocean and Seadrill were down 7.06% and 22.26% respectively, with the former having received a contract termination notice from Chevron for the Discoverer Clear Leader rig.

AMD was also in the market spotlight, finishing 2.4% lower after CNBC reported it was building a custom processor for Tesla's autonomous autopilot for cars.

Dow Jones - Risers

General Electric Co. (GE) $24.75 1.77%
Goldman Sachs Group Inc. (GS) $231.29 0.65%
JP Morgan Chase & Co. (JPM) $95.03 0.45%
Intel Corp. (INTC) $37.20 0.35%
United Technologies Corp. (UTX) $114.50 0.35%
Visa Inc. (V) $105.31 0.32%
Home Depot Inc. (HD) $159.19 0.32%
Cisco Systems Inc. (CSCO) $32.70 0.31%
Boeing Co. (BA) $256.15 0.23%
Chevron Corp. (CVX) $116.47 0.09%

Dow Jones - Fallers

Procter & Gamble Co. (PG) $92.64 -1.86%
Apple Inc. (AAPL) $153.39 -1.72%
Johnson & Johnson (JNJ) $131.75 -1.10%
Verizon Communications Inc. (VZ) $48.94 -1.09%
Microsoft Corp. (MSFT) $74.21 -0.97%
Coca-Cola Co. (KO) $45.40 -0.83%
Exxon Mobil Corp. (XOM) $79.90 -0.82%
Nike Inc. (NKE) $53.19 -0.69%
Wal-Mart Stores Inc. (WMT) $80.01 -0.61%
McDonald's Corp. (MCD) $159.03 -0.53%

S&P 500 - Risers

Anadarko Petroleum Corp. (APC) $48.49 8.21%
Sl Green Realty Corp. (SLG) $101.13 3.49%
Best Buy Co. Inc. (BBY) $53.95 2.59%
Alliance Data Systems Corp. (ADS) $215.76 2.56%
Marathon Oil Corp. (MRO) $12.74 2.50%
Vornado Realty Trust (VNO) $75.63 2.44%
Equifax Inc. (EFX) $98.25 2.34%
Tenet Healthcare Corp. (THC) $15.92 2.25%
Public Service Enterprise Group Inc. (PEG) $46.22 2.19%
CF Industries Holdings Inc. (CF) $35.96 2.19%

S&P 500 - Fallers

Transocean Ltd. (RIG) $9.08 -7.06%
Diamond Offshore Drilling Inc. (DO) $13.09 -5.28%
United States Steel Corp. (X) $24.66 -4.38%
Southwestern Energy Co. (SWN) $5.83 -3.64%
Allergan plc (AGN) $202.69 -3.50%
Clorox Co. (CLX) $131.33 -2.98%
Kroger Co. (KR) $20.22 -2.79%
Nvidia Corp. (NVDA) $180.76 -2.73%
Zimmer Biomet Holdings Inc (ZBH) $113.06 -2.72%
Urban Outfitters Inc. (URBN) $22.74 -2.70%

Nasdaq 100 - Risers

American Airlines Group (AAL) $46.29 1.92%
Netflix Inc. (NFLX) $188.78 1.76%
Shire Plc Ads (SHPG) $155.36 1.28%
Discovery Communications Inc. Class C (DISCK) $20.30 1.15%
Seagate Technology Plc (STX) $32.72 1.05%
Biomarin Pharmaceutical Inc. (BMRN) $93.42 0.92%
Cintas Corp. (CTAS) $137.45 0.68%
Analog Devices Inc. (ADI) $84.24 0.66%
Discovery Communications Inc. Class A (DISCA) $21.35 0.42%
Baidu Inc. (BIDU) $238.92 0.40%

Nasdaq 100 - Fallers

JD.com, Inc. (JD) $42.98 -3.29%
Mercadolibre Inc. (MELI) $281.87 -2.87%
Nvidia Corp. (NVDA) $180.76 -2.73%
NetEase Inc. Ads (NTES) $277.62 -2.09%
Symantec Corp. (SYMC) $33.04 -2.02%
Tesla Inc (TSLA) $366.48 -1.99%
Electronic Arts Inc. (EA) $118.02 -1.93%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $219.74 -1.83%
Apple Inc. (AAPL) $153.39 -1.72%
Idexx Laboratories Inc. (IDXX) $155.76 -1.72%