Stock Market News For October 04, 2016

Benchmarks closed in the red on Monday after British Prime Minister Teresa May said the process of the U.K. leaving the European Union will start by March of next year. Moreover, concerns over financial health of Deutsche Bank also weighed on investor sentiment. Additionally, the encouraging domestic manufacturing data also raised speculations of sooner-than-expected rate hike prospect.

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 0.3%, to close at 18,253.85. The S&P 500 also fell 0.3% to close at 2,161.20. The tech-laden Nasdaq Composite Index closed at 5,300.87 losing 0.2%. The fear-gauge CBOE Volatility Index (VIX) increased 2.1% to settle near at 13.57. A total of around 5.9 billion shares were traded on Monday, lower than the last 20-session average of 7.1 billion shares. Decliners outpaced advancing stocks on the NYSE. For 56% stocks that declined, 41% advanced.

What Dragged The Benchmarks?

British Prime Minister Theresa May said that the process of the U.K.’s exit from the European Union will start by March-end and will most likely be completed by 2019. In her speech, May said that U.K. will become “a fully independent, sovereign country.” May’s Brexit-related speech had a negative impact on the global and domestic markets.

Further, shares of Deutsche Bank AG (DE:DBKGn) (Deutsche Bank Down Over 7%, Stock Hits New Low ).

Additionally, the ISM manufacturing index rose to 51.5 in September from 49.4 in August, signaling an expansion in overall factory growth. Although manufacturing data was encouraging, it intensified sooner than later rate hike worries.

Meanwhile, construction spending was down for the second straight month in August. According to the Commerce Department, U.S. construction spending declined 0.7% in August to its lowest level since December, 2015.

Moreover, after six years of stable growth, slump in major automakers’ sales last month weighed on overall light-vehicle sales. General Motors Company (NYSE:GM) ( .

Stocks That Made Headlines Today

Rockwell Automation (NYSE:ROK) Acquires MAVERICK for Domain Expertise

Rockwell Automation, Inc. (Read More )

Tractor Supply Buys Petsense, Enhances Pets Business

Tractor Supply Company (Read More )

Wall Street Abuzz with Rumors: Will Disney Acquire Netflix?

Recently, a rumor surfaced that The Walt Disney Company (NYSE:DIS) (Read More )

Toyota to Form Internal Company for Emerging Markets

Toyota Motor Corporation (Read More )

Emerson to Buy Permasense, Bets Big on Inorganic Growth

Emerson Electric Co. (Read More )

Dover Makes Strategic Move: Buys Ravaglioli, Sells Tipper Tie

Dover Corporation (Read More )

Morgan Stanley (NYSE:MS) Charged for "Unethical" Business Practices

Morgan Stanley (Read More )

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Written By: Zacks Investment Research