Stock Market News For November 15, 2016

After finishing the last week on a high, U.S benchmarks remained mostly mixed on Monday following significant decline in technology stocks. The Dow’s winning streak extended to a sixth consecutive session to finish and the index finished at another all-time record high. However, both the Nasdaq and S&P 500 finished in the red. Decline in shares of Apple and so called FANG stocks dragged the technology sector down, which eventually had a negative impact on the benchmarks. However, a continuing rally in financial stocks helped to offset some of the losses.

The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 18,868.69. However, the S&P 500 fell a meagre 0.01% to close at 2,164.20. The tech-laden Nasdaq Composite Index closed at 5,218.40, declining nearly 0.4%. The fear-gauge CBOE Volatility Index (VIX) rose nearly 2.2% to settle at 14.48. A total of around 10 billion shares were traded on Monday, higher than the last 20-session average of 7.7 billion shares. Advancers outpaced declining stocks on the NYSE. For 51% stocks that advanced, 47% declined.

Decline in Tech Stocks Weigh on Markets

Rising speculations that Trump’s presidency may have a negative impact on the technology sector continued to hurt stocks from the domain. During his campaign, Trump had provided strong indications that he would take steps to control immigration and outsourcing –both pillars that the tech sector stands on. This is one of the major reasons because of which the sector has suffered heavily since election results were released.

The Technology Select Sector SPDR ETF (NYSE:XLK) declined 1.5% yesterday and emerged as the worst performing sector among the broader S&P 500 sectors. Shares of Apple Inc (NASDAQ:AAPL). (AAPL) declined 2.5% and was one of the primary causes for the Nasdaq’s decline. Meanwhile, shares of FANG stocks, which include Facebook (NASDAQ:FB), Inc. (FB), Amazon.com (NASDAQ:AMZN), Inc. (AMZN), Netflix (NASDAQ:NFLX), Inc. (NFLX) and Alphabet (NASDAQ:GOOGL) Inc. ( GOOGL) – declined 3.3%, 2.7%, 1.2% and 2.4%, respectively. Separately, the strengthening U.S. dollar also had a negative impact on stocks.

Rally in Financial Stocks Continued

However, markets managed to offset most of the losses from tech stocks on the back of a continuing rally in financials. Expectations that inflation will rise in the near future have heightened, which in turn has raised chances of a rate hike next month. These factors continued to have a positive impact on financials. The Financial Select Sector SPDR ETF (NYSE:XLF) gained nearly 2.5% and was the biggest gainer among the broader S&P 500 sectors.

Major stocks from the sector including Bank of America Corporation (NYSE:BAC) (BAC), JPMorgan Chase & Co (NYSE:JPM). ( JPM) and Citigroup Inc (NYSE:C). (C) rose 5.6%, 3.7% and 3.5%, respectively. While BofA holds a Zacks Rank #2 (Buy), JPMorgan and Citigroup posses Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Separately, shares of Harman International Industries (NYSE:HAR), Incorporated (HAR) surged 25.2% following news that Asian giant, Samsung Electronics (KS:005930) will acquire the company in an all cash deal worth $8 billion (or $112 per share representing 28% premium to Nov 11, 2016 closing price). (Read More)

Stocks That Made Headlines

Home Depot Stock Up on Q3 Earnings and Sales Beat

The Home Depot Inc (NYSE:HD). (HD) reported better-than-expected top and bottom-line results for third-quarter fiscal 2016, gaining from balanced sales growth as well as persistent focus on productivity that bolstered earnings. ( Read More)

Assurant (NYSE:AIZ) Announces Dividend Increase, Share Buyback Plan

Assurant, Inc. (AIZ ) recently increased its dividend by 6% and approved a share buyback program worth $600 million. (Read More)

GE Digital Buys ServiceMax to Augment Industrial Internet

General Electric Company (GE), recently acquired ServiceMax, a premier cloud-based field service management solutions provider. (Read More)

Verizon Acquires LQD WiFi to Expand IoT Portfolio

Verizon Communications Inc. (VZ) announced the acquisition of LQD WiFi LLC -- a New York-based firm specializing on Internet of Things (IoT) technology. ( Read More)

Regency to House 429 Properties with $5B Equity One Buyout

Regency Centers Corporation (REG ) has agreed to acquire Equity One, Inc. (EQY) for around $5 billion. ( Read More)

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