US close: Markets reverse gains to end in the red

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Sharecast News | 18 Oct, 2016

US stocks closed lower on Monday, as oil prices fell and investors took in some key economic data and a slew of corporate results.

The Dow Jones Industrial Average was last down 0.29% at 18,086.40, the S&P 500 lost 0.3% to 2,126.50 and the Nasdaq 100 was off 0.26% at 4,796.17.

Meanwhile, oil prices weakened after data from oil field service company Baker Hughes showed the number of active US oil rigs last week rose by four to 432.

Brent crude was last down 0.52% to $51.68 per barrel while West Texas Intermediate was lower by 0.52% to $50.09.

Shares in Bank of America surged 14.29% as it reported third quarter profit unexpectedly increased as expenses fell and bond trading rose.

Revenue rose 3% to $21.64bn, ahead of the $20.97bn anticipated by analysts.

US industrial production rose 0.1% in September following a revised 0.5% fall in August, according to the Federal Reserve. Analysts expected a 0.2% gain.

In contrast, the Empire State manufacturing index fell to -6.8 in October from -2 in September, which was below the consensus +1.

The new orders index edged up but remained negative at -5.6, suggesting an ongoing fall in orders, and the shipments index rose to -0.6.

Paul Sirani, chief market analyst at Xtrade, said news that industrial production has returned to growth is the latest encouraging piece of data to come out in recent weeks, while it was also a positive considering the strength of the dollar and China’s weakening trade demands.

“There’s more than one box to tick this week, though, and tomorrow’s consumer price index will be closely observed.

"Federal Reserve Chair Janet Yellen knows that she needs to cool off the world’s largest economy sooner rather than later, and anything better than expected tomorrow firms up the likelihood of a December hike, and also keeps a pre-election rate rise in the picture.”

Naeem Aslam, chief market analyst at Think Markets, said: “What we have today is very much negative data from the US and this is impacting the sentiment in the market. Investors are not thrilled that the Fed is going to increase the interest rate in December – as the odds are highly skewed towards this side.

“If you look at the economic data, the US empire state manufacturing number, it tells you that things are very feeble. The number fell to -6.8 which is really shocking and industrial production number just added the cherry on top by missing the forecast of 0.3% when the actual number printed 0.1%.”

September’s consumer price index will be published on Tuesday at 1330 BST.

Dow Jones - Risers

Johnson & Johnson (JNJ) $118.49 0.79%
Boeing Co. (BA) $134.00 0.37%
Verizon Communications Inc. (VZ) $50.43 0.30%
Chevron Corp. (CVX) $101.36 0.28%
International Business Machines Corp. (IBM) $154.77 0.21%
Unitedhealth Group Inc. (UNH) $134.13 0.16%
Cisco Systems Inc. (CSCO) $30.22 0.13%
Exxon Mobil Corp. (XOM) $86.54 -0.00%
Apple Inc. (AAPL) $117.55 -0.07%
3M Co. (MMM) $170.21 -0.07%

Dow Jones - Fallers

McDonald's Corp. (MCD) $112.39 -1.47%
Nike Inc. (NKE) $51.03 -1.14%
Home Depot Inc. (HD) $125.08 -1.01%
Merck & Co. Inc. (MRK) $61.52 -1.00%
Goldman Sachs Group Inc. (GS) $169.00 -0.89%
Procter & Gamble Co. (PG) $87.83 -0.68%
E.I. du Pont de Nemours and Co. (DD) $68.67 -0.54%
JP Morgan Chase & Co. (JPM) $67.17 -0.52%
Walt Disney Co. (DIS) $90.83 -0.51%
Pfizer Inc. (PFE) $32.50 -0.49%

S&P 500 - Risers

Hasbro Inc (HAS) $81.82 7.43%
United States Steel Corp. (X) $16.97 3.41%
Vulcan Materials Co. (VMC) $112.60 2.57%
Illumina Inc. (ILMN) $141.23 2.34%
Newmont Mining Corp. (NEM) $35.03 2.34%
FirstEnergy Corp. (FE) $32.23 2.28%
Martin Marietta Mtrl (MLM) $177.19 2.20%
Westrock Company (WRK) $47.60 1.88%
Public Service Enterprise Group Inc. (PEG) $41.57 1.64%
Vertex Pharmaceuticals Inc. (VRTX) $80.50 1.60%

S&P 500 - Fallers

Southwestern Energy Co. (SWN) $12.47 -3.33%
Chesapeake Energy Corp. (CHK) $6.34 -3.20%
HP Inc (HPQ) $14.04 -3.11%
Devon Energy Corp. (DVN) $41.77 -3.04%
Western Digital Corp. (WDC) $53.18 -3.03%
Endo International Plc (ENDP) $19.27 -2.97%
Cabot Oil & Gas Corp. (COG) $21.94 -2.75%
Yum! Brands Inc. (YUM) $86.73 -2.75%
Marathon Oil Corp. (MRO) $14.18 -2.74%
Helmerich & Payne Inc. (HP) $66.80 -2.74%

Nasdaq 100 - Risers

Illumina Inc. (ILMN) $141.23 2.34%
Vertex Pharmaceuticals Inc. (VRTX) $80.50 1.60%
Celgene Corp. (CELG) $99.64 1.16%
Alexion Pharmaceuticals Inc. (ALXN) $119.47 0.95%
Yahoo! Inc. (YHOO) $41.79 0.84%
T-Mobile Us, Inc. (TMUS) $46.52 0.63%
Liberty Media Corporation - Class A (LMCA) $28.12 0.57%
Akamai Technologies Inc. (AKAM) $54.94 0.51%
Biomarin Pharmaceutical Inc. (BMRN) $85.45 0.48%
Amgen Inc. (AMGN) $162.62 0.44%

Nasdaq 100 - Fallers

Western Digital Corp. (WDC) $53.18 -3.03%
Endo International Plc (ENDP) $19.27 -2.97%
Tractor Supply Company (TSCO) $65.54 -2.56%
Bed Bath & Beyond Inc. (BBBY) $40.42 -1.87%
Stericycle Inc. (SRCL) $74.19 -1.70%
Netflix Inc. (NFLX) $99.80 -1.65%
Liberty Global plc Series C (LBTYK) $30.47 -1.55%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $258.72 -1.53%
Whole Foods Market Inc. (WFM) $28.31 -1.43%
Regeneron Pharmaceuticals Inc. (REGN) $366.73 -1.33%

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