Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Stocks Continue Post-FOMC Slide


Today's financial recap and tomorrow's financial outlook.

The S&P 500 (INDEXSP:.INX) fell for the second day in a row after Wednesday's all-time highs on the back of the Fed's announcement that it would not be tapering its QE program.

While there were no economic data reports today, it certainly wasn't a slow day. Shares of Apple (NASDAQ:AAPL) rose early as news reports of strong demand for the company's new iPhone 5S made the rounds, but they sold off into the close and finished down more than 1%.
In earnings news, Darden Restaurants (NYSE:DRI), operator of several dining chains including Red Lobster and Olive Garden, announced fiscal first-quarter results that were below Wall Street's expectations. The company also announced layoffs and cost cuts aimed at improving earnings.

But the big mover today was Canadian smartphone maker BlackBerry (NASDAQ:BBRY), which fell 17% after announcing preliminary second-quarter results. The company now expects revenues of $1.6 billion, which is 43% below the analysts' consensus forecast of $3 billion. BlackBerry also said that it would lay off 4,500 workers and continue to explore strategic options, such as a sale.

In fixed income news, the 10-year US Treasury yield tightened.

However, interest-rate-sensitive stocks like utilities, metals, and junk bonds sold off, possibly due to fear that the strong action on Wednesday marked a near-term bottom for yields.
Over on the political front, the House of Representatives passed a spending bill that avoided a government shutdown and eliminated funding for the Affordable Care Act (a.k.a. Obamacare). However, ACA spending may be restored next week by the Senate.

Tomorrow's Financial Outlook

At 8:30 a.m. ET on Monday, the Chicago Fed National Activity Index will be reported. The consensus currently stands at -0.05. Twenty-eight minutes later at 8:58 a.m. ET, the Markit US Preliminary PMI will be released, with economists expecting a reading of 54.
Also note that three major domestic monetary policy players will be giving speeches on Monday: Atlanta Fed President Lockhart will speak at 9:20 a.m. ET, New York Fed President Dudley will speak at 9:30 a.m. ET, and Dallas Fed President Fisher will speak at 1:30 p.m. ET. Given this week's controversial decision not to taper QE, market participants may be listening extra closely to their statements.
Readers should also watch for an announcement from Apple regarding iPhone sales, as this information could most certainly move the Nasdaq Composite (INDEXNASDAQ:.IXIC).

Disclosure: Minyanville Studios, a division of Minyanville Media, has a corporate relationship with BlackBerry.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos