August 28, 2015 Financial News – Business News – Stock Exchange – NYSE – Market News
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Business News – Financial News – Stock News — New York Stock Exchange — Market News 2015
Business News – Financial News – Stock Exchange — Wall Street — Market News – New York Stock Exchange 2015
Monday was the start of some incredible volatility in the markets, with the Dow Industrials plunging over 1,000 points at the opening, then recovering most of the losses by the afternoon, and then closing the day down 588 points. Trading volume was the highest seen since 2011. The selloff was prompted by concerns over a slowing economy in China, along with the Shanghai Composite dropping 8.5%, its sharpest one-day drop since 2007. The U.S. dollar fell more than 1.5% against major world currencies.
On Tuesday, investors were greeted with news that China’s central bank cut interest rates and lowered reserve requirements for the second time in two months. Markets opened strongly, however, towards the end of the day, the Dow Industrials fell sharply again, closing down almost 205 points. Also on Tuesday, new home sales for July were up 5.4% month over month, while consumer confidence for August was up strongly to 101.5, compared to the previous month’s 91.
On Wednesday, markets finally rebounded with the Dow Industrials closing up 619 points, about 4%. New York Fed Bank President William Dudley’s comments that the case for rate hikes seemed “less compelling than it was a few weeks ago”, injected some optimism, along with a solid durable goods orders report for July, up 2% on top of the prior month’s 4.1% gain.
On Thursday, the rally continued with the Dow Industrials closing up 369 points higher. China’s Shanghai Composite index also closed up 5.4%, its first positive close in five trading sessions. The 2nd quarter GDP was revised upward to 3.7%, much higher than expectations. Jobless claims for the week ending August 22nd also remained very low at 271,000, down 6,000. Oil surged more than 10% to top $42 a barrel.
On Friday personal income for July was up .4%, consumer spending was up .3%, and the PCE price index was very tame, up only .1%. Markets opened down modestly on the news.
Now let’s take a look at some stocks:
Best Buy Co Inc.(NYSE:BBY) shares spiked Tuesday, to over $33, after releasing second quarter earnings that beat estimates. The company reported earnings of $0.49 per share on sales of $8.5 billion. Analysts had forecast earnings of $0.34 per share on sales of $8.3 billion.
Google Inc. (NASDAQ:GOOGL) stock rallied Wednesday following the tough start of the trading week after Goldman added the company to their “Conviction Buy List” while raising Google’s price target from $660 to $800. Analysts at Goldman believe that Google is in the initial stages of a “multi-year cycle” for margin expansion.
Williams-Sonoma, Inc.(NYSE:WSM) shares fell after the retailer reported second quarter results that depicted a weaker outlook for the current quarter and the full-year. The company did however meet expectations for the second quarter, reporting earnings of $0.58 per share.
St. Jude Medical, Inc.(NYSE:STJ) and Abbott Laboratories (NYSE:ABT) both saw their shares rise more than 4% on Thursday after rumors of Abbott Laboratories preparing a $25 billion bid to acquire the medical device manufacturer. Abbott Labs has denied any such talks.
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