US close: Stocks end in the red as IMF cuts growth forecasts
US stocks ended in the red on Tuesday as the International Monetary Fund downgraded its US growth forecasts and investors digested comments from a Federal Reserve official who suggested interest rates should be hiked.
The Dow Jones Industrial Average and the S&P 500 ended down 0.5%, while the Nasdaq closed off 0.2%.
At the same time, oil prices rose despite Iran and Libya continuing to increase production in the wake of OPEC’s agreement last week to limit output. West Texas Intermediate gained 0.8% to $49.19 a barrel and Brent crude was up 0.8% to $51.32.
The IMF on Tuesday cut its 2016 estimate for US gross domestic product to 1.6% from the 2.2% it predicted in July. However, it forecast global growth would remain steady at 3.1% this year, due to a rebound in emerging and developing economies.
Meanwhile, Richmond Fed President Jeffrey Lacker said he would have voted in favour of an interest rate hike at the September policy meeting if he had been able to vote.
"I would have dissented," Lacker told reporters in Charleston, West Virginia, where he gave a speech on the economic outlook.
The Fed last month decided to keep rates at between 0.25% and 0.50% as it waits for further evidence of improvement in inflation and the economy. The central bank indicated that it expects one rate increase this year.
On the company front, Deutsche Bank’s US-listed shares reversed the previous day’s decline as worries about the lender’s financial state and legal troubles receded.
On Friday, US shares in the lender surged after a media report suggested its fine from the US Department of Justice could be reduced from $14bn to $5.4bn. On Monday, the Wall Street Journal said talks between the two were ongoing and no settlement has been reached.
Darden Restaurants also advanced after the operator of Olive Garden reported first quarter earnings that exceeded analysts’ estimates.
Summit Therapeutics surged after saying it has entered into an exclusive license and collaboration agreement with Sarepta Therapeutics.
In currency markets, the pound slumped to a 31-year low against the dollar as UK Prime Minister Theresa May’s pledge to trigger Article 50 by March continued to weigh on the currency.
S&P 500 - Risers
Hartford Financial Services Group Inc. (HIG) $43.78 +3.01%
Salesforce.Com Inc. (CRM) $72.63 +2.99%
Signet Jewelers Ltd (SIG) $77.82 +2.77%
Northern Trust Corp. (NTRS) $69.83 +2.47%
Bed Bath & Beyond Inc. (BBBY) $44.00 +2.35%
SunTrust Banks Inc. (STI) $44.73 +2.19%
State Street Corp. (STT) $71.35 +2.19%
Navient Corporation (NAVI) $14.64 +2.16%
Keycorp (KEY) $12.41 +2.14%
Urban Outfitters Inc. (URBN) $35.42 +1.81%
S&P 500 - Fallers
Newmont Mining Corp. (NEM) $34.25 -10.10%
United States Steel Corp. (X) $17.52 -6.41%
Diamond Offshore Drilling Inc. (DO) $16.60 -4.60%
Dr Pepper Snapple Group Inc. (DPS) $86.86 -4.30%
AES Corp. (AES) $11.95 -4.17%
Dollar Tree Inc (DLTR) $76.43 -3.90%
Transocean Ltd. (RIG) $9.52 -3.35%
Murphy Oil Corp. (MUR) $29.87 -3.24%
Iron Mountain Inc (New) (IRM) $35.39 -3.09%
PPL Corp. (PPL) $32.90 -3.09%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $162.27 +0.75%
Apple Inc. (AAPL) $113.00 +0.43%
American Express Co. (AXP) $63.91 +0.16%
JP Morgan Chase & Co. (JPM) $66.60 +0.14%
Pfizer Inc. (PFE) $33.72 +0.12%
Walt Disney Co. (DIS) $92.59 +0.11%
Johnson & Johnson (JNJ) $118.82 +0.01%
Dow Jones I.A - Fallers
3M Co. (MMM) $171.68 -1.92%
E.I. du Pont de Nemours and Co. (DD) $66.88 -1.42%
Verizon Communications Inc. (VZ) $51.26 -1.20%
Chevron Corp. (CVX) $101.27 -1.15%
Nike Inc. (NKE) $52.14 -1.01%
McDonald's Corp. (MCD) $113.50 -0.99%
United Technologies Corp. (UTX) $101.43 -0.98%
Exxon Mobil Corp. (XOM) $86.25 -0.92%
Caterpillar Inc. (CAT) $87.51 -0.87%
International Business Machines Corp. (IBM) $156.46 -0.73%
Nasdaq 100 - Risers
JD.com, Inc. (JD) $27.49 +5.29%
Bed Bath & Beyond Inc. (BBBY) $44.00 +2.35%
Akamai Technologies Inc. (AKAM) $54.64 +1.73%
TripAdvisor Inc. (TRIP) $64.42 +1.69%
Skyworks Solutions Inc. (SWKS) $76.59 +1.67%
Alexion Pharmaceuticals Inc. (ALXN) $123.41 +1.04%
Biomarin Pharmaceutical Inc. (BMRN) $95.13 +0.84%
Check Point Software Technologies Ltd. (CHKP) $78.18 +0.79%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $38.05 +0.71%
Symantec Corp. (SYMC) $25.25 +0.56%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $76.43 -3.90%
Stericycle Inc. (SRCL) $77.34 -3.03%
Mattel Inc. (MAT) $30.21 -1.82%
Fastenal Co. (FAST) $41.45 -1.68%
Xilinx Inc. (XLNX) $53.06 -1.61%
NetApp Inc. (NTAP) $34.85 -1.44%
Incyte Corp. (INCY) $94.17 -1.43%
Mondelez International Inc. (MDLZ) $43.16 -1.42%
Regeneron Pharmaceuticals Inc. (REGN) $397.20 -1.40%
Kraft Heinz Co. (KHC) $88.02 -1.19%