Stock Market News For September 08, 2016
Zacks Investment Research | Sep 07, 2016 10:10PM ET
Benchmarks closed mostly unchanged on Wednesday after Fed’s Beige Book report indicated moderate growth in coming months. Meanwhile, Sprouts Farmers Market reduced its quarterly and full year guidance, which in turn had a negative impact on consumer staples sector. Declines in consumer staples stocks pulled the Dow and S&P 500 down. However, the Nasdaq managed to close at its all-time record high following gains in Apple (NASDAQ:AAPL).
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 0.1%, to close at 18,526.14. The S&P 500 fell 0.32 points to close at 2,186.16. However, the tech-laden Nasdaq Composite Index closed at 5,283.93 gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 2.6% to settle at 11.71. A total of around 6.5 billion shares were traded on Wednesday, higher than the last 20-session average of 6 billion. Advancers outpaced declining stocks on the NYSE. For 60% stocks that advanced, 37% declined.
What Weighed on the Dow and S&P 500?
Fed’s Beige Book showed that most of the districts signaled “that national economic activity continued to expand at a modest pace” during the period of July-August. Moreover, consumer spending remained “little changed”, while tourism activity was unchanged.
The Beige Book further added that wage pressures were “fairly modest,” and is also expected to increase moderately in coming months. However, it stated that there can be some uncertainty due to the upcoming presidential elections, which eventually had a negative impact on both the Dow and S&P 500.
In company news, Sprouts Farmers Market, Inc’s (SFM ) shares fell 13.7% after the company forecasted that its third quarter same-store sales growth will remain flat as compared to previous projection of 3.5% to 4.5% increase. Full-year same store sales growth is also reduced from 3.5%-4.5% to 1.5%-2.5%.
Declines in Sprouts Farmers Market led the Consumer Staples Select Sector SPDR (XLP) to fall 0.9%, which was the biggest decliner among the S&P 500 sectors. Some of its components including, Mead Johnson Nutrition Company (NYSE:MJN) (WFM ) decreased 5.5% and 5.3%, respectively.
What Supported the Nasdaq?
Apple Inc.’s ( Here's Everything We Learned From Today's Apple Event )
Separately, Apache Corp (NYSE:APA). ( the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Stocks that Made Headlines
Tractor Supply Company (Read More )
Hewlett Packard Enterprise Company’s (Read More )
Intel Corporation (Read More )
Liberty Media Corporation (Read More )
L-3 Communications Holdings Inc. (Read More )
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