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T3's Take 3: Biotech Spooks the Market for the Third Day in a Row


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

Today on T3 Live

Are you busy November 6-8?

We hope you'll consider joining us in Miami, Florida for the first annual T3 Live Finance Festival.

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Distinguished speakers include T3 Live's Scott Redler, David Kotok, Chief Investment Officer of Cumberland Advisors, and Jeff Saut, Chief Investment Officer of Raymond James.

Click here to see our full agenda and lineup of 30+ speakers

US Markets

The S&P 500 had another wild day. The index rose in early trading before sharply dropping to an intraday low of 1871.91, coming within close range of the August 24 low of 1867.01.

Then, the index surged into the close to finish at 1884.05, up 0.1%.

For the third day in a row, intraday weakness in the biotechnology sector preceded softness in the broader markets. The NASDAQ Biotechnology Index ETF (IBB) fell 0.4%, while the S&P Biotech ETF (XBI), which includes small and mid-cap biotech stocks, fell 4.2%.

Economic data was mixed today.

The S&P/Case-Shiller Home Price Index showed a 5% year-over-year increase in home prices in July, which missed the 5.2% consensus by a small margin.

The cononsumer confidence index impressed with a reading of 103, beating expectations of 96.8.

World Equity Markets

Asian shares were hammered today on concerns about the Chinese economy. The Shanghai Composite closed down 2% after a drop in energy and commodity related stocks.

Yesterday, economic data showed Chinese industrial profits declined by 8.8% in August .

The Nikkei tumbled 4.1% today as investors sold off companies with exposure to China. Kobe Steel, one of Japan's largest steel producers, dropped 11.1%, while construction equipment maker Komatsu fell 4%. Softbank lost 6.4% after Yahoo (YHOO) said it would spin off its 15% stake in Alibaba (BABA). 

Australia's ASX slumped 3.8% from the commodity slump. The Korean Kopsi closed down 0.2%. 

European shares were also lower today despite a small rebound in auto, mining, and oil stocks. The German DAX declined 0.4%, while the French CAC dropped 0.3%. Investors were primarily focused on developments in the Volkswagen (VW) saga, including evidence that the company cheated to receive tax breaks in the US. Glencore, soared 16% after Citigroup (C) released a note stating that yesterday's sell-off was overdone. 

Tech Slump

Apple (AAPL) shares finished down 3.0% today, despite receiving positive analyst coverage. Stern Agee initiated coverage on the stock with a Buy rating and $150 target price.

Yesterday, Apple announced that it sold over 13 million iPhone 6s units over the weekend, which failed to impress investors.

Netflix (NFLX) was down with the broader market despite announcing a new partnership with Virgin Airlines that would allow flyers to use the service during flights. Shares closed down 1.1%

Tesla (TSLA) fell 0.7% ahead of tonight's launch of its Model X vehicle.

The tech-heavy NASDAQ Composite fell 0.6% today.
Wednesday's Financial Outlook

US economic data for tomorrow will include MBA mortgage applications, ADP employment change, ISM Milwaukee, Chicago purchasing manager, and DOE oil reports.

Overseas economic data includes German retail sales & employment report, Britain's GDP, euro-zone CPI, Canadian GDP, Chinese manufacturing & non-manufacturing, and Caixin PMI.

Paychex (PAYX) will release earnings before the open.
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