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Stock Market News for June 17, 2013 - Market News
6/17/2013 9:29:00 AM
Markets slipped into the red following dismal reports on the home front coupled with investor concerns about the future of the Federal Reserve's bond buying program. Investors are hesitant to take any positions ahead of the all-important Federal Reserve policy meeting this week. Meanwhile, industrial production for the month of May came in flat. Financial sector was the biggest loser among the S&P 500 industry groups. Utilities stocks were the only gainers.
The Dow Jones Industrial Average (DJI) lost 0.7% to close the day at 15,070.18. The S&P 500 slipped 0.6% to finish Friday's trading session at 1,626.73. The tech-laden Nasdaq Composite Index fell 0.6% to end at 3,423.56. The fear-gauge CBOE Volatility Index (VIX) jumped 4.5% to settle at 17.15. Consolidated volumes on the New York Stock Exchange, American Stock Exchange and Nasdaq were roughly 5.5 billion shares, considerably lower than the 2013's average of 6.38 billion shares. Declining stocks outnumbered the advancers. For the 45% that advanced, 53% declined.
Markets were volatile last week following concerns over the Federal Reserve's bond buying program. The Dow lost 1.2%, the S&P 500 slipped 1% and the Nasdaq declined 1.3%, over the week. The Federal Reserve is buying bonds worth $85 billion every month to keep interest rates low. This program was implemented to boost borrowing, spending and investing to bring the country back on the road to recovery. The Fed's easy monetary policy has pushed major indices higher this year. But after Fed chairman Ben Bernanke's testimony on May 22, markets started losing their ground. Investors are of the view that if the Fed tapers the bond buying program, growth of the economy may be affected. The Federal Reserve's two-day policy meeting will be held on Tuesday. All eyes are fixed on the outcome of this meeting.
Meanwhile, according to Thomson Reuters and the University of
Michigan, the preliminary estimate of consumer sentiment dropped
to 82.7 in June from previous month's figure of 84.5. This was
considerably below the consensus estimate of 84.4. In the
previous month, the index was its highest level since July 2007.
On the other hand the U.S. Bureau of Labor Statistics reported
that Producer Price Index increased 0.5% in May. This was above
the consensus estimate of an increase of 0.1%.
The financial sector had a bad day and was the biggest loser
among the S&P 500 industry groups. The Financial Select
Sector SPDR (XLF) lost 1.3%. Stocks such as JPMorgan Chase &
), Goldman Sachs Group Inc (NYSE:
), Bank of America Corp (NYSE:
), Citigroup Inc (NYSE:
) and Wells Fargo & Co (NYSE:
) declined 1.9%, 1.8%, 1.1%, 2.1% and 1.9%, respectively.
BANK OF AMER CP (BAC): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
CENTERPOINT EGY (CNP): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
GOLDMAN SACHS (GS): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis Report
PUBLIC SV ENTRP (PEG): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
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