Markets

Midday Update: Post-Fed Rally Extinguished by Another Sell-Off for Oil, Energy Stocks

Wall Street has surrendered its early gains, with the post-FOMC rally extinguished by another supply-related sell-off for energy stocks. West Texas Intermediate crude oil was down more than 2% in recent commodities trade, again dragging shares of energy companies sharply lower, followed by heavy losses for materials and consumer stocks. The Dow Jones Industrial Average was posting a triple-digit loss led by losses for component company Caterpillar ( CAT ) along with declines for financial stocks after their big run-up yesterday afternoon.

After the Federal Reserve showed its hand Wednesday with a 25 basis point increase in U.S. interest rates, also offering up a cautious approach toward future increases, today's economic data was largely ignored by investors despite a sizable miss for the Philadelphia Fed business outlook survey. Analysts were expecting a slight decline in the index to a 1.2 December reading from 1.9 during November, but the index instead plummeted to a negative 5.9 reading, the third time in four months that the index fallen into negative territory.

Tther economic data Thursday was mixed: initial jobless claims fell 11,000 to 271,000; the current account deficit swelled to $124.1 billion during Q3 from $111.1 billion in the prior quarter; and leading economic indicators edged 0.4% higher in November, beating expectations for a 0.2% rise.

European equities held onto most of their overnight gains, catching the tail-end of Wednesday's U.S. rally to close higher today. Germany's DAX soared 2.5% on gains for health care and financial stocks, while European bond yields fell 3 to 9 basis points.

Crude oil was down 74 cents to $34.87 per barrel. Natural gas was up 5 cents to $2.00 per 1 million BTU. Gold was down $24.50 to $1,052.20 per ounce, while silver was down 53 cents to $13.72 per ounce. Copper was down 3 cents to $2.04 per pound.

Among energy ETFs, the United States Oil Fund was down 1.91% to $10.79 with the United States Natural Gas Fund was down 0.70% to $7.11. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 5.36% to 13.41 while SPDR Gold Shares were down 1.90% to $100.80. The iShares Silver Trust was down 2.89% to $13.10.

Here's where the U.S. markets stood at mid-day:

NYSE Composite Index down 116.48 (-1.13%) to 10,151.35

Dow Jones Industrial Average down 175.68 (-0.99%) to 17,573.41

S&P 500 down 23.07 (-1.11%) to 2,050.00

Nasdaq Composite Index down 45.86 (-0.90%) to 5,025.27

GLOBAL SENTIMENT

Nikkei 225 Index up 1.59%

Hang Seng Index up 0.79%

Shanghai China Composite Index up 1.81%

FTSE 100 Index up 0.68%

CAC 40 up 1.14%

DAX up 2.57%

NYSE SECTOR INDICES

NYSE Energy Sector Index down 2.34%

NYSE Financial Sector Index down 1.08%

NYSE Healthcare Sector Index down 0.71%

UPSIDE MOVERS

(+) RWLK (+119.50%) Veterans Affairs Dept to cover exoskeleton systems

(+) MNRK (+37.83%) Offered $18.57 per share from Towne Bank ( TOWN )

(+) P (+13.69%) Will pay 15% more in royalties for 2016-2020 period

(+) ETAK (+10.64%) Unveils executive changes as part of a restructuring plan

(+) FDX (+3.23%) Beat Q3 EPS and revenue estimates

DOWNSIDE MOVERS

(-) TK (-58.92%) Board oks plan to cut quarterly dividend by 90%

(-) PIR (-15.80%) Missed Q3 sales estimates, beat EPS, but lowered FY16 guidance

(-) WB (-11.01%) Fiscal Q1 results miss estimates

(-) PII (-9.43%) Slashed its entire growth expectation for 2015 earnings and cut its sales guidance growth range by more than half, partly due to the unusually warm weather

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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