A perceived fallout from the impact of higher global interest
rates on emerging markets reverberated throughout the financial
markets for a second day on Friday. U.S. equities sustained heavy
losses, driving the Dow Industrials down nearly 2%, below its
50-day moving average to a five-week low. The S&P 500 slid 2%,
dropping below pivotal support at 1,800 and shedding 2.6% for the
week, while the Nasdaq reversed all of last week's gains, closing
more than 2% lower Friday and down 1.7% this week.
Besides emerging-market malaise, worries about slower Chinese
growth undermined stocks again Friday following Thursday's report
of a decline in China's ISM index to below the 50 expansionary
level. Currency devaluations in Argentina, the flight-to-safety
from the U.S. dollar into the Japanese yen, and political turmoil
in Turkey and Ukraine were also blamed for the defensive tone of
the equity market.
The anxiety gripping emerging markets overshadowed positive
earnings today from Bristol Meyers Squibb (
) and Honeywell (
), both of which closed lower despite beating earnings estimates.
Industrials also suffered heavy losses with Dow components General
), Boeing (
) and 3M (
) leading blue-chips deep into negative territory. The CBOE
Volatility Index (VIX), known as the stock market's "fear gauge,"
shot up nearly 30% Friday.
Here's where the markets stand at the close:
Dow Jones Industrial Index was down 318 (-1.97%) at 15,879
S&P 500 was down 38 (-2.1%) at 1,790
Nasdaq Composite Index was down 90 (-2.2%) at 4,128
FTSE 100 was down 1.62%
Nikkei 225 was down 1.94%
Hang Seng Index was down 1.25%
Shanghai China Composite Index up 0.60%
ARIA Upgraded to Outperform from Market Perform at BMO Capital
Markets, with its price target lifted to $14 from $8.
JNPR Reported Q4 EPS of $0.43, better than expectations of $0.37
UPI Reported a 14% jump in fiscal third-quarter sales and
forecast even stronger revenue growth for the current quarter
BSDI Biodelivery and partner and Endo Pharmaceuticals (ENDP)
reported positive top-line results from its pivotal phase 3
efficacy study of BEMA buprenorphine
KSU Reported Q4 EPS of $1.03, missing the analyst consensus of
$1.10 on Cap IQ
ATOS Priced 5.8 million units for $2.40 per unit for gross
proceeds of approximately $14 million
CBLI Oppenheimer downgraded the stock to Perform from
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