Stocks on Wall Street Move in Narrow Trading Range before Decline

Strategic Insights -

Stocks on Wall Street maintained a fairly narrow trading range for most of the session before plummeting in the final hour, despite consolidating some gains at the end of the day. The market's best performing month in four years came to an end, with the Fed meeting being the week's main focus. The possibility of a rate hike at the next meeting in December was suggested, sparking market concerns.

Key Takeaways:

  • The market's best performing month in four years came to an end, with stocks experiencing a significant decline in the final hour of the session.
  • The Fed meeting highlighted the week, with the suggestion that a rate hike could still be considered possible at the next meeting in December.
  • The Chicago purchasing manager's index jumped 7.5 points to 56.2 in October, beating expectations for a reading of 49.5.
  • The University of Michigan consumer sentiment survey had a significant downward revision to a final October reading of 90.0, below the expected 92.5 figure.
  • Valeant (VRX) announced that it would sever all ties with Philidor, the specialty pharmacy at the center of its controversy, after CVS Health (CVS) and Express Scripts (ESRX) removed Philidor from their pharmacy-benefit management networks.
  • Exxon Mobil (XOM) and Chevron (CVX) shares advanced 1% and 1.5%, respectively, following their quarterly sales and profits reports.
  • First Solar (FSLR), LinkedIn (LNKD), AbbVie (ABBV), and Expedia (EXPE) were among the notable gainers following their quarterly earnings reports.
  • SolarCity (SCTY), Aaron's (AAN), Boston Beer (SAM), and Electronic Arts (EA) were among the notable losers following their quarterly earnings reports.

Statistics:

  • Stocks on average declined 0.52% for the day.
  • The Dow index fell 92.26 to 17,663.54.
  • The Nasdaq lost 20.53 to 5,053.75.
  • The S&P 500 declined 10.05 to 2,079.36.
  • The Chicago purchasing manager's index jumped 7.5 points to 56.2.
  • The University of Michigan consumer sentiment survey had a downward revision to a final October reading of 90.0.
  • Valeant's stock price dropped 15.87% to $93.81.
  • Exxon Mobil reported a 1% increase in quarterly sales, while Chevron reported a 1.5% increase in quarterly profits.

Sources:

  • TheFlyOnTheWall.com (Oct 30, 2015)