Stocks slip from near record highs

Written By limadu on Kamis, 12 September 2013 | 23.53

dow 12pm sept 12

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NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were down slightly Thursday.

Prior to the day's dip, the S&P 500 had enjoyed a seven-day rally that had lifted the broad index within 1.2% of its all-time high. The Dow is just 2% from its record high, while the Nasdaq continues to trade near 13-year highs.

But investors are finding little reason to make any big bets as they look ahead to next week's Federal Reserve meeting. The Fed may decide to cut back on its quantitative easing program at that meeting. The Fed has previously indicated that it was considering scaling back on this liquidity-boosting program, which has supported a big rally in stock markets around the world, sometime before the year is over.

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Investors have been keeping close tabs on recent economic data lately to better anticipate the Fed's next move, but there is little clarity.

Despite that, gold investors dumped the precious metal, sending prices down 2.4% Thursday, on bets that the Fed may scale back sooner rather than later following a distorted report that first-time claims for unemployment benefits dropped sharply to 292,000 -- their lowest level since early 2006.

The Labor Department noted that two states did not report complete data last week, which skewed the total figure. Once those states submit their final data, the total is likely to be revised higher in the next few weeks. Overall, the health of the job market remains mixed though. Fewer companies are laying off workers, but hiring for new jobs remains far too slow to aid the 11.3 million Americans who are unemployed

Over the years, the Fed's stimulus has boosted demand for gold as a hedge against inflation.

Easing tension in Syria amid growing likelihood that a diplomatic resolution may be found also pressured gold prices.

Related: Fear & Greed Index idling in neutral

What's moving: Yoga-wear producer lululemon (LULU) announced a jump in quarterly sales and profit, but shares slumped as the company lowered its guidance for the year. The dip was a popular topic among StockTwits traders.

TraceyRyniec: $LULU WAS about the guidance today. It's not a good sign that it can't get the pants into the stores for the fall season.

T1ST: $LULU seems to me biggest problem they face is they cant build the product fast enough for the growing demand, ouch, cant make enough

Shares in Men's Wearhouse (MW) sank after the company reported disappointing quarterly earnings on Wednesday.

On the bright side, shares of grocery chain Kroger (KR, Fortune 500) moved higher on rising earnings and better-than-expected sales.

Pandora's (P) stock jumped after the online radio company named former aQuantive chief and Microsoft (MSFT, Fortune 500) executive Brian McAndrews as its new CEO. Though investors seemed to be hopeful about the new chief, the reviews were mixed among traders.

LDrogen: Not sure who the new $P CEO is, but he's got to be an upgrade from that guy who always whined about having to pay the musicians.

win2betmore: $P New CEO doesn't warrant a rise like this, we all know what happened with Microsoft Bearish

BCapital: $P is fools gold. $AAPL will soon take market share...

Related: Facebook shares finally top $45

Facebook (FB) shares opened at a fresh all-time high Thursday, a day after topping $45 for the first time since its first day of turbulent trading on May 18, 2012. Speaking at the TechCrunch Disrupt Wednesday evening, Facebook CEO Mark Zuckerberg said the company is better off for having gone through its rocky IPO.

Shares of Apple (AAPL, Fortune 500) rose slightly a day after billionaire investor Carl Icahn said he boosted his stake in the company as shares tumbled more than 5% Wednesday due to disappointment with the two new iPhones.

But it wasn't all good news for tech stocks. Netflix (NFLX) shares sank after analysts at Morgan Stanley and BTIG downgraded the stock amid worries about the company's valuation. Shares of Netflix have rallied more than 200% in 2013, and are trading at more than 90 times 2014 earnings forecasts. To top of page

First Published: September 12, 2013: 9:44 AM ET


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