Closing Update: Stock Sell-Off Continues Fifth Day as GDP Seen Raising Odds For Early-2014 Taper

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Stocks ended near their worst levels of the day after Q3 GDP growth and upbeat jobs data raised expectations that the Fed will start considering a gradual end to QE at the start of 2014. Selling pressure triggered by the 3.6% print in Q3 GDP was moderated, however, but the possibility that tomorrow's non-farm payrolls and consumer sentiment data might provide a less-optimistic outlook on the economy. In addition, the details of GDP included an inventory glut expected to pressure GDP to below 2% in the current quarter. Large caps were hardest hit, especially financials and other interest-rate sensitive stocks, after the GDP data elevated the benchmark 10-year Treasury yield to a high of 2.88% today.

Europe limped into the close as well, undermined by the continued weakness in U.S. stocks and central bank activity. Today's meeting of the European Central Bank and Bank of England ended without an adjustment to either country's interest rates, as was expected. But hopes that the ECB would introduce non-traditional stimulus measures to boost the EU-zone economy were dashed when Mario Draghi dismissed the immediate need for monetary stimulus. European bourses are expected to open lower again tonight in sympathy with their U.S. counterparts and before the pivotal U.S. jobs report.

US MARKETS

Dow Jones Industrial Index was down 68 (-0.4%) to 15,821

S&P 500 was down 7.78 (-0.4%) to 1,785

Nasdaq Composite Index was down 4.48 (-0.1%) to 4,033

GLOBAL SENTIMENT

FTSE 100 was down 0.18%

Nikkei 225 was down 1.50%

Hang Seng Index was down 0.07%

Shanghai China Composite Index was down 0.21%

UPSIDE MOVERS

MFRM Reported Q3 EPS of $0.55, beating the Capital IQ consensus by $0.01.

UNXL Positive Seeking Alpha article that anticipates improved production will counter recent volatility on an SEC investigation earlier this year.

MEI The company reported adjusted Q2 2014 income was $19.8 million, or $0.51 per share, compared with $5.0 million, or $0.13 per share, a year ago.

DOWNSIDE MOVERS

JCP Hedge-fund manager J. Kyle Bass has reportedly sold his stake in the company.

TITN Fiscal Q3 diluted earnings dropped to $0.27 from $0.66 the year earlier, missing the $0.49 estimate. Sales rose to $588 million from $582.1 million but missed consensus of $615 million.

WTSL On Wednesday, Wet Seal reported Q3 sales of $127.7 mln, down from $135.5 mln last year and the adjusted loss was $0.12 per share, vs. a year ago loss of $0.11 per share.



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.

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This article appears in: Investing , Commodities

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