Dow -0.38%  16,370.96  /  -62.13 
Nasdaq -0.34%  4,805.76  /  -16.58 
S& P -0.41%  1,953.03  /  -8.02

 

 

U.S. stocks closed down on Monday as many investors put off making big bets ahead of the Federal Reserve' s policy meeting this week and others worried about weak economic data from China.

Stocks are expected to stay volatile ahead of a Federal Reserve announcement scheduled for Thursday after a two-day meeting at which it will decide whether or not to make its first interest rate increase since 2006.

" There' s absolutely no conviction up or down. Everybody' s waiting on the Fed. The Fed' s sitting around singing that tune ' Should I stay or should I go now. If I stay it will be trouble. If I go it will be double' ," said David Spika, global investment strategist for the GuideStone Funds, in Dallas, Texas citing lyrics from a popular song by The Clash.

The Fed has said it will raise rates when it sees a sustained economic recovery with emphasis on jobs and inflation but while the jobs market has improved inflation has been held down by weak oil prices.

A broad group of economists polled by Reuters last week bet on a September move by a slim margin economists at banks that deal directly with the Fed, known as primary dealers, picked December as more likely and traders of short term interest rate futures were giving a rate rise this week only a one-in-four chance.

Stocks have been volatile since China devalued its currency in August. The S& P 500 has had moves of at least 1 percent in more than 10 sessions since Aug. 20.

" Because of the volatility in the market and the conflicting data points on the U.S. economy, it' s really difficult to get a firm handle on what the Fed' s likely to do," Spika said.

Trading was slow with about 5.4 billion shares changing hands on U.S. exchanges, below the 8-billion daily average for the previous twenty sessions, according to Thomson Reuters data.

Also weighing on stocks was data showing China' s investment and factory output in August missed forecasts, raising chances China' s third-quarter economic growth may dip below 7 percent for the first time since the global crisis.

" China continues to be a concern as investors look for a bottom in regard to the country, even though the government has a lot of room to stimulate growth," said Chris Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Florida.

The Dow Jones industrial average .DJI fell 62.13 points, or 0.38 percent, to 16,370.96, the S& P 500 .SPX lost 8.02 points, or 0.41 percent, to 1,953.03 and the Nasdaq Composite .IXIC dropped 16.58 points, or 0.34 percent, to 4,805.76.

Nine of the 10 major S& P sectors fell, led by the materials index .SPLRCM. Utilities .SPLRCU rose 0.23 percent while the energy index .SPNY fell 0.8 percent as U.S. crude oil prices settled down 1.4 percent.

Apple (AAPL.O) shares ended up 0.96 percent at $115.31 after it said iPhone pre-orders were on track to beat last year' s first-weekend record.

NYSE decliners outnumbered advancers 2,044 to 971, for a 2.11-to-1 ratio on the Nasdaq, 1,709 issues fell and 1,068 advanced for a 1.60-to-1 ratio.

The S& P 500 posted 2 new 52-week highs and 6 lows the Nasdaq recorded 42 new highs and 72 lows.

Related Coverage

• Fact box: What Fed officials have said lately about a rate rise
• Markets on Fed alert
•   Fact box: Fed' s rate decision follows a roller-coaster year

 

 

World Markets

Dow +0.63%  16,433.09  /  +102.69 
Nasdaq +0.54%  4,822.34  /  +26.09 
S& P +0.45%  1,961.05  /  +8.76

Japan Nikkei 225    -0.19% 18,264.22  / -35.33
Hong Kong Hang Seng    -0.19% 21,521.79  / -40.63
London FTSE 100    -0.62% 6,117.76 /   -37.81
Germany DAX    -0.85% 10,123.56 /   -86.14

Wall Street climbs, S& P 500 posts best week since July

U.S. stocks rose on Friday and the S& P 500 posted its biggest weekly gain since July as investors weighed whether the Federal Reserve will raise interest rates next week.

Energy shares dropped, however, after Goldman Sachs cut its oil price forecast through next year.

Eight of the 10 S& P 500 sectors closed higher, led by gains in utilities .SPLRCU, which tend to rise as bond yields fall. The index ended up 0.8 percent, while 10-year U.S. Treasury note US10YT=RR yields dipped.

Investors are awaiting next week' s Fed monetary policy meeting and news on whether it will raise benchmark U.S. rates for the first time in almost a decade.

" It' s really Fed watch. That' s what traders are waiting for," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

" There' s speculation the Fed might hold off, and if they do, I think we' ll see stocks rally. But to us, it' s not a question of if the Fed raises rates but when. It' s going to happen."

The Dow Jones industrial average .DJI rose 102.69 points, or 0.63 percent, to 16,433.09, the S& P 500 .SPX gained 8.76 points, or 0.45 percent, to 1,961.05 and the Nasdaq Composite .IXIC added 26.09 points, or 0.54 percent, to 4,822.34.

For the week, the S& P was up 2.1 percent and the Nasdaq rose 3.0 percent, registering their biggest weekly percentage gains since mid-July. The Dow was up 2.1 percent for the week, its best weekly percentage increase since late March.

Stocks have been volatile since China devalued its currency in August amid concerns of sputtering growth in the world' s second-largest economy. The S& P 500 has had moves of at least 1 percent in 11 sessions since Aug. 20.

The Fed has said it will raise rates when it sees a sustained economic recovery, especially in the job market.

The day' s data signaled moderate economic growth and tame inflation. U.S. consumer sentiment dropped to its lowest in a year in early September, while producer prices for August were flat.

Oil prices fell after the Goldman forecast, which cited oversupply and concerns over China' s economy. Goldman said crude could fall as low as $20 a barrel. ConocoPhillips (COP.N), down 2.2 percent at $47.36, was the biggest drag on the S& P 500.

Gilead (GILD.O) rose 2.2 percent to $109.63 after the company' s $10 billion debt offering this week fueled speculation it was planning a big acquisition.

On the down side, Zumiez (ZUMZ.O) fell 32.5 percent to $14.63 after the sports apparel and accessories maker forecast third-quarter sales and profit below analysts' estimates.

Volume was light. About 6.0 billion shares changed hands on U.S. exchanges, compared with the 8.0 billion daily average for the past 20 trading days, according to Thomson Reuters data.

Advancing issues outnumbered declining ones on the NYSE by 1,629 to 1,429, for a 1.14-to-1 ratio on the upside on the Nasdaq, 1,565 issues rose and 1,216 fell for a 1.29-to-1 ratio favoring advancers.

The S& P 500 posted one new 52-week high and 10 new lows the Nasdaq recorded 32 new highs and 87 new lows.

 

 

Dow +0.47%  16,330.40  /  +76.83 
Nasdaq +0.84%  4,796.25  /  +39.72 
S& P +0.53%  1,952.29  /  +10.25

 

 

U.S. stocks ended higher on Thursday in another day of broad swings as investors showed nervousness ahead of next week' s much-anticipated Federal Reserve meeting, but gains in Apple and biotech shares supported the day' s advance.

Apple' s shares (AAPL.O) rose 2.2 percent to $112.57, rebounding from losses the day before when the iPhone and iPad maker unveiled new offerings.

Biotech also boosted the market, with Gilead (GILD.O) up 3.3 percent at $107.25, giving the second-biggest boost to the S& P 500 and Nasdaq after Apple. The Nasdaq biotechnology index .NBI was up 1.9 percent.

The day' s gains follow a 1-percent market decline on Wednesday and weeks of volatility largely tied to worries about a slowdown in Chinese growth and its impact on the global economy. Investors also have been nervous about next week' s Fed meeting and whether the U.S. central bank will decide to raise interest rates for the first time in nearly a decade.

" It' s this tug of war, and that gives big moves going both ways at the moment. Obviously investors are very unsettled with regard to their conviction," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

" It certainly doesn' t seem as though we have a groundswell of demand coming into stocks that can push the market up significantly."

The Dow Jones industrial average .DJI rose 76.83 points, or 0.47 percent, to 16,330.4, the S& P 500 .SPX gained 10.25 points, or 0.53 percent, to 1,952.29 and the Nasdaq Composite .IXIC added 39.72 points, or 0.84 percent, to 4,796.25.

The S& P 500 traded in a 28-point range on Thursday, but has had moves of at least 1 percent in 11 sessions since Aug. 20, when concerns about a deceleration in the Chinese economy began to increase.

Nine of the 10 major S& P sectors were higher, led by the healthcare .SPXHC, up 0.9 percent, and technology .SPLRCT, up 1 percent.

Adding to uncertainty surrounding the Fed' s next meeting, data showed the U.S. labor market appeared to gain momentum in early September as fewer Americans filed for weekly unemployment benefits, while another report showed import prices fell last month.

Influential fund manager David Tepper of Appaloosa Management told CNBC that corporate earnings may not rise as much as expected and he was not overly bullish on stocks next year.

Krispy Kreme Doughnuts (KKD.N) dropped 11.7 percent to $15.65 a day after the doughnut chain cut its 2016 profit forecast.

Also, shares of Avon Products (AVP.N) fell 9.5 percent to $4.10, reversing earlier gains. The Wall Street Journal reported the company was in talks with private equity firms about an investment through a stake sale in the struggling company.

After the bell, shares of Restoration Hardware (RH.N) were up 2.4 percent at $93.25 following its results and outlook.

During the regular session, NYSE advancing issues outnumbered declining ones 1,623 to 1,398 on the Nasdaq, 1,656 issues rose and 1,155 fell. The S& P 500 index posted one new 52-week high and eight lows the Nasdaq recorded 28 new highs and 62 lows.

About 6.8 billion shares changed hands on U.S. exchanges, below the 8.1 billion daily average for the past 20 trading days, according to Thomson Reuters data.