Markets

Close Update: Stocks Trim Early Losses Tied to ISM

Wall Street staged an impressive comeback off the day's lows when stocks retreated on the back of a weaker-than-expected ISM manufacturing index and sell-off in the technology and utility sectors. The S&P 500 flirted with 1,900 soon after the open before steadily climbing higher for its third consecutive higher close. The Dow Jones Industrial Average trimmed most of its triple-digit losses recorded just after the open, but fell short of a positive close due to losses in component stocks Caterpillar ( CAT ) and Verizon ( VZ ).

Despite premarket gains, stocks fell back after the open on hawkish comments from Richmond Fed President Jeffrey Lacker and a miss on the ISM that put U.S. manufacturing on the brink of contraction. The ISM overshadowed upbeat data on construction spending and initial jobless claims, driving the Nasdaq Composite to Wednesday's 4,559 low with selling amplified by losses in Apple ( AAPL ) and chipmaker stocks.

Commodities were defensive as well with gold dropping close to $2 per ounce, industrial metals all lower, and oil returning early gains to close 33 cents lower at $45.02 per barrel.

Friday's calendar includes the crucial September payroll report which many believe could play a pivotal role in the Federal Reserve's decision this month whether or not to raise interest rates. Non-farm payrolls are expected to increase 203,000 with the jobless rate staying at 5.1%.

Also on tomorrow's calendar is August factory orders, forecast to decline by 1.3%.

There is also a heavy speaking schedule from members of the Federal Reserve starting with Boston Fed President Eric Rosengren , followed by Philadelphia President Patrick Harker (who recently replaced dove Charles Plosser), Minneapolis President Narayana Kocherlakota, Cleveland Fed President Loretta Mester, Vice Chairman Stanley Fischer, and St. Louis President James Bullard.

Here's where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was down 12.69 points (-0.08%)

S&P 500 was up 3.79 points (+0.20%)

Nasdaq Composite Index was up 6.92 points (+0.15%)

GLOBAL SENTIMENT

FTSE 100 was up 0.18%

Nikkei 225 was up 1.92%

Hang Seng Index was up 1.41%

Shanghai China Composite Index was up 0.48%

UPSIDE MOVERS

(+) PACB (+48.91%) Launched a new nucleic acid sequencing platform, the Sequel System

(+) XOMA (+43.67%) Announced a development and commercialization agreement with Novartis ( NVS ) for anti-transforming growth factor-beta antibody program

(+) SRPT (+22.33%) Reported positive eteplirsen data

(+) TYL (+10.17%) Acquires New World Systems Corp for $670 mln in cash and stock

(+) SOL (+8.11%) Repurchases $36 million of convertible notes

DOWNSIDE MOVERS

(-) CROX (-14.04%) Cut Q3 revenue outlook below consensus forecasts

(-) DNKN (-12.24%) Issued FY15 guidance that is below Wall Street estimates, could be impacted by Hurricane Joaquin in Northeast locations

(-) MNKD (-4.05%) Announced third round of layoffs

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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