Closing Update: Stocks Spurned as Budget Deal Raises Taper Odds

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The equity markets are limping into the close again today after news of a bipartisan budget deal, one that still faces a vote, ignited jitters that the Federal Reserve has room to choke off some liquidity. After stabilizing earlier this afternoon, the sell-off in the Dow Industrial gained momentum into the close as traders positioned themselves defensively before tomorrow's pivotal economic data. Equities were also weighed down by year-end window dressing and competition from the Treasury market with the 10-year note luring yield-hungry investors.

Global markets were lower in sympathy with the U.S. as the impact from higher U.S. rates could interrupt the fragile EU economic rebound as well as send emerging markets reeling. Investors are also frustrated by ECB Mario Draghi's reluctance to consider non-traditional methods, such as quantitative easing, to provide liquidity to European markets.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was down 129 (-0.8%) to 15,843

S&P 500 was down 20 (-1.1%) to 1,782

Nasdaq Composite Index was down 56 (-1.4%) to 4,003.81

GLOBAL SENTIMENT

FTSE 100 was down 0.24%

Nikkei 225 was down 0.62%

Hang Seng Index was down 1.71%

Shanghai China Composite Index was down 1.49%

UPSIDE MOVERS

MA, Announces a 10-for-1 stock split, a 83% increase in its quarterly dividend to $1.10 per share and plans for a $3.5-bln stock buyback program.

AAL Upgraded by JP Morgan to Overweight from Neutral with a price target of $37.

CYTR Released encouraging results from a phase 2b clinical trial investigating the efficacy and safety of its aldoxorubicin cancer treatment

DOWNSIDE MOVERS

OPK Falls in reaction to an unfavourable Seeking Alpha article

GEVO Plans to sell an undisclosed number of common stock units and senior note units.

LH The stock was downgraded by analysts at Canaccord Genuity to a Hold from a Buy and the price target cut to $91 from $115 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.

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


This article appears in: Investing , Commodities

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