Closing Update: Stocks Lower as Renewed Ukraine Tensions Trigger Late Sell-Off
Nervous investors bailed out of equities late Tuesday as worries of a Russian invasion of Ukraine amplified early pressure tied to strong factory orders. The late sell-off, triggered by a comment on raised risks of an invasion from Poland's foreign minister Radoslaw Sikorski, came on the heels of a report from NATO confirming that 8,000 more Russian troops have amassed on the Russia/Ukraine border.
With markets already defensive after strong reports renewed concerns U.S. economic strength will give the Federal Reserve the ammunition to hike rates sooner than expected, the selling tied to geo-political pressures met with little resistance. As a result, the Dow Jones Industrial Average slid to an 11-week low, shedding nearly 200 points before the feeding frenzy stalled.
Stocks opened in the red despite upbeat earnings with worries about the impact bullish data will have on Fed overpowering upbeat sentiment. Wall Street shrugged off the downward revision to the July services PMI to 60.8 from 61.0, but sold off on a stronger-than-expected 1.1% surge in June factory orders that erased a 0.6% revised decline in May. This data was followed by a much better-than-expected gain in the ISM non-manufacturing index to 58.7 from June's 56.0. The combination spooked investors and kept equities in negative territory for the entire session.
Here's where the markets stand at the close:
Dow Jones Industrial Index was down 139 points (-0.8%) at 16,429
S&P 500 was down 19 points (-1%) at 1,920
Nasdaq Composite Index was down 31 points (-0.7%) at 4,352
FTSE 100 was up 0.07%
Nikkei 225 was down 1.00%
Hang Seng Index was up 0.20%
Shanghai China Composite Index was down 0.15%
(+) CHGG Reports a narrower-than-expected Q2 loss
(+) NBTF To be acquired by Peoples Bancorp ( PEBO ) for approximately $109 million
(+) GIGA Net sales were up 50% from Q1 2014
(+) MWA Upgraded by Brean to Buy from Hold
(-) WAG Report suggests company may not pursue corporate inversion
(-) CRR Rosetta Resources ( ROSE ) dropped use of its products and the impact could harm future results.
(-) AMSC Missed Q1 revenue estimates, issues disappointing guidance
(-) ENZY Misses earnings and revenue estimates, EPS guidance below street consensus