Closing Update: What the Fed Giveth, The Fed Taketh Away; Stocks Spooked by Fed-Taper Warning From Bullard and George

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Just two days after the FOMC decided to keep the fiscal spigot open, comments from regional Fed Presidents reignited investors' anxiety about an imminent tapering of the $85 billion per month asset purchase program.

Although the Dow Jones Industrial will still close the week on the plus side, it shed more than 100 points today on comments from Fed Presidents James Bullard and Esther George hinting that an October tapering is still on the table. Although Bullard and George are both very conservative regarding monetary stimulus, their remarks still caught equities off guard after the markets had reached record highs Wednesday on the expectation that a taper was on hold until there was further economic evidence of a rebound.

The only economic data was the Atlanta Fed Business Inflation Expectation. According to business owners in the Atlanta Fed region, unit prices are expected to increase 1.9% in September, down slightly from 2.0% in August.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was down 1.18% at 15,451.85

S&P 500 was down 0.73% at 1,709.76

Nasdaq Composite Index was down 0.39% at 3,774.73

GLOBAL SENTIMENT

FTSE 100 was down 0.44%

Nikkei 225 was down 0.16%

Hang Seng Index was up 1.67%

Shanghai China Composite Index was up 0.29%

UPSIDE MOVERS:

FEYE The stock price nearly doubled from its 15.2 million IPO price of $20 per share.

VRNM BASF offered $4 per share for the company for a total acquisition cost of $62 million.

FUEL Artificial intelligence company, Rocketfuel, launches 4 million share IPO at $29 per share

DOWNSIDE MOVERS:

BBRY Released dismal Q2 earnings just before the close. Revenue of $1.6 billion was nearly half of consensus estimates of $3.1 billion

DRI Reported that fiscal Q1 earnings fell 38% to $0.53 from $0.85 the year earlier, also missing the $0.71 average Capital IQ analyst estimate

RNA Phase III clinical study of drisapersen for the treatment of Duchenne Muscular Dystrophy didn't meet the primary endpoint



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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