Stock Market News For September 09, 2016

Benchmarks ended in the red on Thursday after the European Central Bank (ECB) kept its interest rates unchanged and refrained from announcing any additional stimulus measures. Moreover, declines in Apple (NASDAQ:AAPL) also had a negative impact on all the three key indexes. However, some of yesterday’s losses were trimmed following gains in energy stocks on the back of sharp drop in crude inventories.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) decreased 0.3%, to close at 18,479.91. The S&P 500 fell 0.2% to close at 2,181.30. The tech-laden Nasdaq Composite Index closed at 5,259.48 losing 0.5%. The fear-gauge CBOE Volatility Index (VIX) increased 4.8% to settle at 12.51. A total of around 6.5 billion shares were traded on Wednesday, higher than the last 20-session average of 6 billion. Decliners outpaced advancing stocks on the NYSE. For 53% stocks that declined, 44% advanced.

What Dragged the Benchmarks?

The ECB on its policy meeting yesterday, kept its interest rates unchanged. The central bank also did not announce any additional changes to its $1.9 trillion stimulus package. ECB President Mario Draghi did show his concern over low inflation, but also said that policymakers did not come up with any new stimulus measures. ECB’s decision and Draghi’s comments weighed on the key U.S. indexes.

Moreover, Apple Inc’s (AAPL) shares fell 2.6% after the company said that iPhone 7’s first weekend sales numbers will not be disclosed by the tech giant. Following this news, Apple’s shares registered its largest percentage decline since June 24.Apple carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .

Losses in the Apple led the information technology sector within S&P 500 to fall by 0.9%. Some of its holdings including, Accenture plc (NYSE:ACN) ( ACN), Alphabet (NASDAQ:GOOGL) Inc. (GOOGL) and International Business Machines (NYSE:IBM) Corporation (IBM) decreased 2.5%, 0.6% and 1.6%, respectively.

What Boosted Energy Stocks?

However, the U.S. Energy Information Administration (EIA) reported that the U.S. commercial crude oil inventories fell 14.5 million barrels to 511.4 million for the week ended September 02, in contrast to analysts’ projections of an increase of 425,000 barrels. Crude inventories posted its biggest decline since 1999.

WTI crude rose 4.5% to $47.62 per barrel, registering its best percentage rise since April and reached at its highest settlement since August 26. Brent crude also advanced 4% to $49.99 a barrel, its highest level since August 19.

Increase in oil prices led the Energy Select Sector SPDR (XLE (NYSE:XLE)) to gain 1.9%. Some of its holdings, including Chesapeake Energy Corporation (NYSE:CHK) ( CHK), Diamond Offshore Drilling (NYSE:DO), Inc. (DO) and Apache Corp (NYSE:APA). (APA) rose 13.7%, 6% and 7.1%, respectively.

In other economic news, initial claims fell last week by 4,000 to 259,000, settling at its lowest level in two months. This was lower than the consensus estimate of 264,000. Also, the Board of Governors of the Federal Reserve System reported that consumer credit increased by $17.7 billion in July, following June’s $14.5 billion increase.

Stocks That Made Headlines Today

FuelCell Energy Loss Narrower than Expected in Q3

FuelCells’ fiscal third quarter loss was narrower than expected, but revenues came short of our consensus estimate. ( Read more)

Petrobras to Sell Majority Stake in Pipeline Unit to Brookfield

PetroleoBrasileiro S.A. or Petrobras (PBR) reported that it has finally reached an accord to sell a 90% stake in its natural gas pipeline and storage unit to Canadian investment fund, Brookfield Asset Management Inc. (BAM). ( Read More)

Zumiez Q2 Loss Lower than Expected, Q3 View Drab

Zumiez Inc. (ZUMZ) came out with second-quarter fiscal 2016 results, wherein both top and bottom lines fell year over year. (Read More)

Navistar Q3 Loss Narrows Y/Y, Revenues Lag Estimates

Navistar International Corporation (NAV) reported narrower-than-expected third-quarter loss. However, its quarterly revenues lagged behind our estimates. ( Read More)

SUPERVALU Lowers Guidance After Sprouts; Shares Tumble

SUPERVALU Inc. (SVU) announced guidance cut for EBITDA for fiscal 2017. ( Read More)

Salesforce to Acquire Cloud Messaging Platform HeyWire

salesforce.com, Inc. (CRM) has struck a deal to acquire HeyWire, a cloud-based messaging platform for consumers. (Read More)

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