Markets

Mid-Day Update: Wall Street Spooked By Shutdown Threats, Erases Williams-Fueled Gains

The major market averages surrendered mid-morning gains and were headed toward fresh lows for the year as an impending government shutdown coupled with heightened volatility continued to plague Wall Street.

Panic selling erupted midday after President Donald Trump warned that the government would be shutdown for "a very long time" if Senate Democrats vote against funding for a border wall.

Share prices raced higher when NY Fed President John Williams assured Wall Street that the economy is strong and the Federal Reserve listens to the financial markets when making policy decisions. The Dow was up by nearly 400 points, led by gains in component stocks Nike ( NKE ) following the sportswear retailer's strong quarterly results.

Williams' effort to jawbone stocks higher quickly fizzled, however, as the Dow and S&P ran into resistance at Thursday's highs. While the Dow was underpinned for a while by Nike, the S&P 500 and Nasdaq turned negative as the bearish bias that cost both indices 5% and 6.5%, respectively, this week resurfaced. The Dow at last look also moved into the red.

Data released Friday morning was mixed as third-quarter GDP was revised down to 3.4% from 3.5%, initially, and durable goods orders (both nominal and ex-transportation) were both below consensus.

And while personal income increased by a less-than-expected 0.2%, spending was up 0.4% versus the consensus estimate for a 0.3% gain. Additionally, consumer confidence improved this month according to the University of Michigan consumer sentiment survey.

A rush of short-covering into the close propped up European bourses lifting most of the major indices into the green. Led by Lufthansa, Fresenius and Covestro, Germany's DAX was one of the top performers with a 0.21% gain over Thursday's close.

Crude oil was up $0.03 to $45.91 per barrel. Natural gas was up $0.18 to $3.76 per 1 million BTU. Gold was down $7.20 to $1,260.70 an ounce, while silver was down $ 0.16 to $14.70 an ounce. Copper was down $0.02 to $2.67 per pound.

Among energy ETFs, the United States Oil Fund was down 0.07% to $9.71 with the United States Natural Gas Fund up 2.23% to $30.77. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 0.79% to 20.56 while SPDR Gold Shares was down 0.25% to $118.91. The iShares Silver Trust was down 0.72% to $13.75.

Here's where the markets stand at mid-day:

US MARKETS

NYSE Composite Index was down 22.27 points (-0.20%) to 11,188.32

Dow Jones Industrial Index was down 174.47 points (-0.80%) to 22,690.22

S&P 500 was down 24.89 points (-0.99%) to 2,441.73

Nasdaq Composite Index was down 128.17 points (-1.96%) to 6,400.12

GLOBAL SENTIMENT

FTSE 100 was up 9.24 points (+0.14%) to 6,721.17

DAX was up 22.72 points (+0.21%) to 10,633.82

CAC 40 was up 1.92 points (+0.04%) to 4,694.38

Nikkei 225 was down 226.39 points (-1.11%) to 20,166.19

Hang Seng Index was up 129.89 points (+0.51%) to 25,753.42

Shanghai China Composite Index was down 20.02 points (-0.79%) to 2,516.25

NYSE SECTOR INDICES

NYSE Energy Sector Index was up 20.27 points (+0.22%) to 9,245.33

NYSE Financial Sector Index was down 6.74 points (-0.26%) to 6,870.97

NYSE Healthcare Sector Index was up 23.98 points (+0.17%) to 14,789.03

UPSIDE MOVERS

(+) MICT (+131.86%) Merging with Brookfield Interactive and ParagonEx to form a new company

(+) CDXC (+15.30%) Announced global commercial partnership with Nestle for Tru Niagen

(+) NKE (+6.31%) Reported better-than-expected Q2 results

DOWNSIDE MOVERS:

(-) TCON (-45.38%) TRC105 trial missed primary endpoint

(-) PRGO (-26.53%) Received $1.87 billion Irish tax bill

(-) CAMP (-7.45%) Beat Q3 EPS estimates but issued soft Q4 guidance

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

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


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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