Geopolitical Strife Drags Down Equity Markets
Today's financial recap and tomorrow's financial outlook.
However, a spate of negative news soured the mood, and the S&P 500 (INDEXSP:.INX) finished down 0.5% on the day.
Russia's Central Bank took markets by surprise by raising interest rates by 50 basis points in an effort to stem inflation risk and supports its currency in the wake of Western sanctions.
Ukraine remains tense to say the least. Russian authorities claimed that Ukraine fired artillery into Russia with an intent to kill law enforcement officers. Ukrainian officials denied the allegations.
The Pentagon also said Russia was preparing to send separatists sophisticated rocket systems as early as today.
In Gaza, US Secretary of State Kerry pressed for a ceasefire, but fighting continued and the tragic death toll rose again.
Israel officially rejected a ceasefire, and the Palestinian Fatah movement declared Friday a "day of rage".
In financial news, earnings were generally on the weak side.
Amazon.com (NASDAQ:AMZN) had a rough day, declining 9.7% on its disappointing second-quarter earnings and third-quarter operating guidance reported Thursday afternoon..
Online radio company Pandora (NYSE:P) joined Amazon in the doldrums, dropping 10.3% on its second-quarter loss.
And insurance giant Chubb (NYSE:CB) dropped 3.4% on its disappointing second-quarter numbers, which were impacted by weather-related losses, among other issues.
On the plus side, there were some earnings winners today, including Lear (NYSE:LEA) and LyondellBasell (NYSE:LYB).
Fast food chain El Pollo Loco (NASDAQ:LOCO) had a big first day, pricing its IPO at $15 and trading sharply higher to finish at $24.03.
On the deal front, British broadcast company BSkyB agreed to buy Sky Italia and Sky Deutscheland from 21st Century Fox (NASDAQ:FOXA) for $9 billion.
Monday's Financial Outlook
Quite a few companies will release earnings on Monday, including Cummins Engine (NYSE:CMI), Tyson Foods (NYSE:TSN), and Jacobs Engineering (NYSE:JEC). However, none are expected to move the market.
June Pending Home Sales will be released at 10:00 a.m. ET.
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.
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.
Daily Recap Newsletter