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Stocks Continue Post-FOMC Slide

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

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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

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No positions in stocks mentioned.

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