Stock Market News for December 18, 2013 - Market News
18 Dezember 2013 - 4:06PM
Zacks
Benchmarks ended in negative
territory on Tuesday, as investors cautiously awaited the outcome
of the Federal Open Market Committee meeting to gain further
insights into the Fed’s next move. The two-day policy meet is
expected to decide on the future of the Fed’s stimulus measures.
The two-year budget deal also sailed through a test vote in the
Senate, indicating that it may receive final approval later this
week. The materials sector was the only gainer among the S&P
500 industry groups while financials incurred maximum loses.
For a look at the issues currently facing the markets, make sure to
read today’s Ahead of Wall Street article
The Dow Jones Industrial Average (DJI) lost about 0.1% to close the
day at 15,875.26. The S&P 500 declined 0.3% to finish
yesterday’s trading session at 1,781. The tech-laden Nasdaq
Composite Index decreased 0.7% to end at 4,023.68. The fear-gauge
CBOE Volatility Index (VIX) rose 1.1% to settle at 16.21.
Consolidated volumes on the New York Stock Exchange, American Stock
Exchange and Nasdaq were roughly 5.9 billion shares. Declining
stocks outnumbered the advancers. For 52% shares that declined,
only 44% advanced.
The two-day policy meeting of the FOMC started yesterday. Some
market watchers are of the view that the Fed will indicate when it
will begin tapering its stimulus program at the end of this
meeting. Upbeat November nonfarm payrolls data, followed by last
Tuesday’s bipartisan budget deal in Washington increased investor
expectations that this will occur soon.
Meanwhile, a two-year budget deal cleared a Senate procedural vote
yesterday. This indicated that the proposal will be passed by a
simple majority in the Democratic-controlled chamber later in the
week. Coming to voting numbers, the Senate voted in favor of
limiting debate and passing the measure by 67 votes against 33. The
results also exceeded the minimum requirement of 60 votes. The
results also clearly negated Republican objections to higher
short-term government spending.
Twelve of the Republicans joined fifty-three Democrats along with
two independents in support of the tentative two-year budget deal.
The deal is expected to make an automatic spending cut of $60
billion and reduce deficit by as much as $23 billion. The agreement
aims at avoiding another government shutdown over October 1, 2015,
and also promises to end three years of political conflicts and
fiscal instability in Washington.
Soon after the Senate voting, prominent Senate Republican Mitch
McConnell indicated that signs of a debt limit battle were
imminent. He said: "I doubt if the House or for that matter the
Senate is willing to give the president a clean debt ceiling
increase". Senate Majority Leader Harry Reid said he "can't
imagine" that Republicans would clash once again over the debt
ceiling following the tedious struggle on the same issue which
resulted in a sixteen-day government shutdown.
According to the U.S. Department of Labor, the Consumer Price Index
(CPI) for the month of November remained unchanged. This was in
contrast to the consensus estimate of 0.1% increase. The all items
index rose 1.2% in the last twelve months. The index for all items
less food and energy increased 0.2%, higher than the 1.0% increase
over the twelve months till October. The food index rose 1.2% over
the past twelve months, while energy declined 2.4%.
The materials sector was the only gainer among the S&P 500
industry groups. The Materials SPDR (XLB) gained 0.7%. Stocks such
as Monsanto Company (NYSE:MON), E I Du Pont De Nemours And Co
(NYSE:DD), The Dow Chemical Company (NYSE:DOW), Praxair, Inc.
(NYSE:PX), and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)
gained 1.3%, 0.6%, 1.4%, 0.2%, and 0.9%, respectively.
The financials sector incurred maximum loses among the S&P 500
industry groups. The Financials SPDR (XLF) lost 0.7%. Stocks such
as Wells Fargo & Co (NYSE:WFC), JPMorgan Chase & Co.
(NYSE:JPM), Berkshire Hathaway Inc. (NYSE:BRK.B), Bank of America
Corp (NYSE:BAC), and Citigroup Inc. (NYSE:C) decreased 0.9%, 1.2%,
0.3%, 0.4%, and 0.4%, respectively.
BANK OF AMER CP (BAC): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
CITIGROUP INC (C): Free Stock Analysis Report
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
FREEPT MC COP-B (FCX): Free Stock Analysis Report
JPMORGAN CHASE (JPM): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
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