Stocks recovered off their worst levels to end narrowly mixed as worries over the global implications of a slowing Chinese economy dampened demand for risky assets, luring investors instead into the safety of the U.S. government bond market. Blue chips underperformed as a result of losses in Boeing (BA) and the financial sector, but the Nasdaq Composite squeezed out a very small gain, snapping a four-day losing streak. The S&P 500 closed just in positive territory.
Global equities were undermined by the recent Chinese default along with forecasts for more downbeat economic data tonight on retail sales and industrial production. Coming on the heels of bearish Chinese trade data, the impact a slowdown in the world's second largest economy will have on Europe unnerved investors across the globe, magnified by a four-year low in copper, an industrial metal considered a barometer to Chinese manufacturing activity.
In corporate news, reverberations from New Jersey's decision to ban direct sales to consumers continued to undermine shares of Tesla (TSLA), while investors bailed on General Motors (GM) amid allegations by the Justice Department that the car maker may have broken the law by ignoring an ignition defect for more than 10 years. Shares of Fannie Mae (FNMA) and Freddie Mac (FMCC) tumbled following the decision by the Senate Banking Committee to dismantle the government-owned mortgage lenders.
Here's Where Markets Stood At The Close
US MARKETS
- Dow Jones Industrial Index was down 0.07%
- S&P 500 was up 0.03%
- Nasdaq Composite Index was up 0.37%
GLOBAL SENTIMENT
- FTSE 100 was down 0.97%
- Nikkei 225 was down 2.59%
- Hang Seng Index was down 1.65%
- Shanghai China Composite Index was down 0.17%
UPSIDE MOVERS
- OXGN (+77.27%) Reported positive top-line results for a clinical trial of an ovarian-cancer treatment
- EPL (+28.82%) Energy XXI agrees to buy EPS Oil & Gas for $2.3 bln
- INFN (+14.91%) Upgraded by Goldman Sachs from Neutral to Buy
DOWNSIDE MOVERS
- HRZN (-11.84%) Downgraded to Underperform from Market Perform at both Gilford Securities and Keefe, Bruyette & Woods.
- HLF (-7.37%) Received a Civil Investigative Demand from the Federal Trade Commission.
- ORMP (-15.53%) Insulin pill criticized, faces competition from Novo Nordisk
- HDY (-58.75%) Exploration partner cites force majeure surrounding U.S. DOJ and SEC probes
- GERN (-61.59%) FDA puts a hold on Imetelstat drug application
After Hours Stock News From Midnight Trader.
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