Stock Market News For November 04, 2016
Zacks Investment Research | Nov 03, 2016 10:00PM ET
Benchmarks finished in the red on Thursday following continuing uncertainty over the upcoming Presidential election. Moreover, shares of Facebook (NASDAQ:FB) declined after it warned investors that the potential for ad revenues will start slowing soon, which in turn also weighed on major indexes. The S&P 500 registered eight straight sessions of declines for the first time since the 2008 financial crisis. Further, the Dow fell for sixth consecutive trading day, while the Nasdaq registered declines for eight straight sessions for the first time in ten months. Also, the CBOE Volatility Index closed at its highest level in more than four months.
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) decreased 0.2%, to close at 17,930.67. The S&P 500 fell 0.4% to close at 2,088.66. The tech-laden Nasdaq Composite Index closed at 5,058.41, losing 0.9%. The fear-gauge CBOE Volatility Index (VIX) jumped 14.4% to settle at 22.10. A total of around 7.4 billion shares were traded on Thursday, higher than the last 20-session average of 6.5 billion shares. Decliners outpaced advancing stocks on the NYSE. For 58% stocks that declined, 38% advanced.
What Weighed On the Benchmarks?
Uncertainty continued to prevail in the markets following last Friday’s news that the FBI was probing Hillary Clinton’s personal emails. Recent poll results have showed that the presidential race between Hillary Clinton and Donald Trump has tightened. According to the RealClearPolitics polls Clinton only has a 1.7-point lead over Trump, significantly lower than the 7 point lead she held in mid-October.
Shares of Facebook (Here's Why Facebook Stock Is Down Today )
Declines in Facebook led the Technology Select Sector SPDR (XLK) to fall 1% and become the worst performer among the S&P 500 companies. Key holdings from this sector including Apple Inc (NASDAQ:AAPL). ( .
Economic Data On Focus
In economic news, initial claims increased last week by 7,000 to 265,000, reaching its highest level in almost three months. It was also higher than the consensus estimate of 257,000.
Moreover, the Institute for Supply Management reported that ISM Services Index decreased from 57.1% in September to 54.8% last month. It also missed consensus estimate of 56%.
Meanwhile, factory orders increased for third consecutive months in September. Orders increased 0.3% in September after advancing 0.4% in August.
According to the Bureau of Labor Statistics, non-farm business sector labor productivity surged 3.1% in the third quarter of 2016, and was better than consensus estimate of an increase of 1.7%.
Stocks That Made Headlines
Motorola Solutions Inc.’s (Read More )
Shares of Starbucks Corporation (NASDAQ:SBUX) (Read More )
The Kraft Heinz Company (Read More )
Shares of Church & Dwight Co. Inc. (Read More )
International Flavors & Fragrances Inc. (Read More)
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