Markets

Midday Update: Stocks Extend Losses After Bearish Economic Data, Hawkish Comments From Dudley

Stocks were lingering near their session lows Monday as Wall Street digests more bearish economic data from China overnight. Losses have been broad-based, with a seventh consecutive day in the red for the shares of biotech companies was weighing on the Nasdaq Composite index while the S&P 500 was down for a fifth day in a row following more losses for mining and energy stocks as industrial metals and crude oil continue their skids.

Economic data from the U.S., along with hawkish comments this morning from New York Fed President William Dudley amplified the negative tone, with Dudley saying the Federal Reserve will likely raise rates yet this year while pending home sales plummeted 1.4% in August, missing estimates for a 0.5% gain.

Additionally, the Dallas Fed manufacturing index improved to a negative 9.5 reading this month from negative 15.8 in August, missing expectations for a climb to a negative 9.0 reading.

Personal consumption and income data also were mixed. Spending rose a slightly better-than-expected 0.4% in August while income improved just 0.3% versus expectations for a 0.4% gain.

European equities suffered significant losses, with a steep sell-off for Glencore plc driving the major benchmark indices more than 2% lower. The Anglo-Swiss commodity giant lost more than $4.5 billion in value today after analysts warned that falling commodity prices, coupled with the company's crippling debt, could ultimately leave the company's stock worthless.

The sell-off coupled with an 8.7% contraction in China's industrial profits fueled today's heavy losses in Europe that spilled into the U.S. before today's opening bell.

Crude oil was down $1.10 to $44.60 per barrel. Natural gas was up 6 cents to $2.69 per 1 million BTU. Gold was down $11.30 to $1,134 per ounce, while silver was down 58 cents to $14.54 per ounce. Copper was down 4 cents to $2.25 per pound.

Among energy ETFs, the United States Oil Fund was down 1.77% to $14.45 with the United States Natural Gas Fund was up 2.32% to $12.36. Among precious-metal funds, the Market Vectors Gold Miners ETF was down 3.15% to 13.55 while SPDR Gold Shares were down 1.01% to $108.70. The iShares Silver Trust was down 3.33% to $13.92.

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

NYSE Composite Index down 194.34 (-1.97%) to 9,662.91

Dow Jones Industrial Average down 265.33 (-1.63%) to 16,049.34

S&P 500 down 40.75 (-2.11%) to 1,890.59

Nasdaq Composite Index down 116.36 (-2.48%) to 4,570.14

GLOBAL SENTIMENT

Nikkei 225 Index down 1.32%

Hang Seng Index closed

Shanghai China Composite Index closed

FTSE 100 Index down 2.46%

CAC 40 down 2.76%

DAX down 2.12%

NYSE SECTOR INDICES

NYSE Energy Sector Index down 2.80%

NYSE Financial Sector Index down 2.12%

NYSE Healthcare Sector Index down 2.20%

UPSIDE MOVERS

(+) MEG (+22.42%) Received a $14.50 per share offer from Nexstar Broadcasting ( NXST )

(+) OGXI (+12.15%) Announced positive Phase 3 Synergy trial data

(+) BLDP (+8.55%) Seals $6 mln deal to develop fuel cell engines in China

DOWNSIDE MOVERS

(-) VSTM (-50.62%) Stopped enrolling patients in COMMAND study of VS-6063

(-) HUN (-22.79%) Identified trends that are expected to negatively impact Q3 earnings

(-) JAGX (-0.81%) Signed a crofelemer manufacturing and supply agreement with Glenmark Pharmaceuticals

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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