Closing Update: Bloodbath in Equities As FOMC Continues to Weigh on Markets

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The bloodbath in the equities market in reaction to yesterday's FOMC announcement resulted in a 300+ point drop in the Dow and the largest two-day sell-off in the stock market this year. The Dow blew through technical supports including the 10 day and 50 day moving averages within minutes of the open.

The flurry of economic data was mixed starting with initial jobless claims, rising by a greater than expected rate to 354K versus estimates of an increase to 340K for the week ended June 15; the June PMI increased to only 52.2 against consensus of a gain to 52.7; and May leading economic indicators improved only 0.1% vs estimates of a 0.2% increase, and down from the 0.6% gain the month prior. Bullish economic data included May existing home sales which soared 5.18M from 4.97M in April, and the June Philly Fed index which improved to 12.5 from -5.2 the month prior, and significantly better than the consensus of -1.0.

Wednesday's sell-off in US stocks spilled into the European session where equities across the continent posted triple-digit losses and their steepest losses in 18 months. Weak manufacturing data from China took its toll on auto and mining companies as well as other large exporters to Asia.


Crude oil (NMN: CLQ2) was down $3.30 to $94.94 per barrel. Natural gas (NMN: NGU12) was down $0.08 to $3.90 per 1 million BTU. Silver (CNS: SIU2) was down $2.02 to $19.60 an ounce. Copper (CNS: HGU2) was down $0.10 to $3.05 per pound.

Among energy ETFs , the United States Oil Fund ( USO ) was down 3.36% to $33.60 with the United States Natural Gas Fund ( UNG ) was down 1.85% to $20.66. Amongst precious-metal funds, the Market Vectors Gold Miners ETF (NAR: XX:GMI) was down 7.51% to $24.53 while SPDR Gold Shares ( GLD ) were down 5.44% to $123.49. The iShares Silver Trust ( SLV ) was down 7.67% to $19.01.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index (DJI:DJIA) was down 353.87 (-2.34%) to 14,758.32

S&P 500 ( SPX ) was down 40.74 (-2.50%) to 1,588.19

Nasdaq Composite Index (NASDAQ: COMP) was down 78.57 (-2.28%) 3,364.63

GLOBAL SENTIMENT

FTSE 100 (UK:UKX) was down 189.31 (-2.98%) to 6,159.51

DAX (DX:DAX) was down 268.60 (-3.28%) to 7,928.48

CAC 40 (FR:PX1) was down $140.41 (-3.66%) to 3.698.93

Nikkei 225 (TYO: JP:100000018) was down 230.64 (-1.74%) to 13.014.58

Hang Seng Index (HSI: HK:HSI) was down 604.02 (-2.88%) to 20,382.87

Shanghai China Composite Index (SHA: CN:000001) was down 59.26 (-2.76%) to 2.084.02

UPSIDE MOVERS

DRRX - FDA approves New Drug Application for its investigational product POSIDUR

GME - Microsoft eliminates its restrictions on using and sharing games on its new Xbox One.

XIDE - California Superior Court permits Exide to resume operations at its Vernon California plant

DOWNSIDE MOVERS

KGC - Weakness in the gold sector a result of the rising dollar following the FOMC announcement on Wednesday.

PHM - Housing sector hit by rising Treasury yields after the 10 year yield hit a 2 year high of 2.48%

EBIX - Merger between Ebix and affiliate of Goldman Sachs terminated after US Attorney in Georgia opened an investigation regarding allegations of intentional misconduct.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Commodities

Referenced Stocks: GLD , SLV , SPX , UNG , USO

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As of 4/24/2015, 04:15 PM


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