Comments from Federal Reserve Bank of Chicago President
Charles Evans spooked the market on Tuesday and re-introduced the
idea that the central bank could begin tapering its bond-buying
program in September.
Speaking to reporters, Evans said that "I would clearly not
rule" out the possibility that the current quantitative easing
program will be scaled back at the September FOMC meeting.
Market jitters about how the U.S. economy will perform in the
absence of record stimulus led to a decline in risk assets on the
The Dow Jones Industrial Average fell 93 points, or 0.60
percent, to close at 15,519.
The S&P 500 lost 10 points, or 0.57 percent, to 1,697.
The Nasdaq fell 27 points, or 0.74 percent, to 3,666.
traded lower along with the stock market
on Tuesday. Late in the afternoon, NYMEX crude futures were down
1.12 percent to $105.37. Brent crude contracts had lost 0.54
percent to $108.11. Natural gas was trading very slightly down at
last check at $3.32.
Precious metals were also lower on the session. COMEX gold
futures fell 1.47 percent to $1,283.20. Silver contracts lost a
little more than 1 percent to $19.51. Copper was last trading up
0.16 percent to $3.1730.
The grains complex was lower on Tuesday with the exception of
wheat. Corn futures were down around 0.27 percent while wheat
contracts climbed 0.81 percent. Movers in soft commodities
included coffee and orange juice. Coffee futures fell 1.46
percent while orange juice concentrate contracts were down 1.51
Amazon's Jeff Bezos buys the Washington Post.
Long-term Treasury prices rose modestly on the day. Heading
into the closing bell, the iShares Barclays 20+ Year Treasury
Bond ETF (NYSE:
) was up 0.26 percent to $105.97.
Yields were as follows on Tuesday afternoon: The 2-Year Note
yield was 0.31 percent and the yield on the 5-Year Note was
sitting at 1.39 percent. The 10-Year Note and 30-Year Bond were
yielding 2.64 percent and 3.73 percent, respectively.
Near the close of equities, the U.S. dollar was down
moderately. The PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, had lost 0.27 percent to $22.07.
The closely watched EUR/USD pair was last trading up 0.35
percent to $1.3305. Other movers included the USD/JPY, which fell
0.67 percent, and the AUD/USD, which climbed 0.83 percent.
Short-selling interest in Herbalife rises.
Volatility and Volume
The CBOE Volatility Index jumped on Tuesday as the market
declined. Late in the day, the VIX was up around 8.50 percent to
Volume remained very light as many on Wall Street are on
Summer vacation. Around 67 million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 67
Shares of Fossil Group (NASDAQ:
were up more than 18 percent
near the close after the company released better-than-expected
fiscal Q2 earnings results.
Interactive Intelligence Group (NASDAQ:
) continued its run-up on Tuesday, adding around 14 percent,
after reporting a profit for its fiscal second-quarter.
DealerTrack Technologies (NASDAQ:
) jumped better than 10 percent after its fiscal second-quarter
A bullish note from analysts at Cowen & Co. may have
triggered a rally in shares of PBF Energy (NYSE:
). The stock was last trading up around 10 percent on the
Shares of Himax Technologies (NASDAQ:
) have been the subject of volatile moves and heavy trading in
recent weeks. The stock jumped more than 9 percent on Tuesday on
no major news.
McDermott International (NYSE:
plunged in the wake
of very weak second-quarter results. The stock was last trading
down more than 20 percent late on Tuesday.
Retailer American Eagle (NYSE:
) after the company delivered a profit warning for its fiscal
second-quarter. The stock fell more than 12 percent on the
Despite reporting a higher profit for its fiscal
third-quarter, investors were disappointed with results from
AECOM Technology (NYSE:
). The stock fell almost 17 percent on the session.
Biotech firm Tesaro (NASDAQ:
) saw its shares lose more than 9 percent on Tuesday. The reason
for the move was not readily apparent.
EXCO Resources (NYSE:
) fell more than 9 percent on the day after the company's fiscal
second-quarter earnings results failed to impress investors.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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