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Benchmarks closed in the red on Thursday despite Congress’ last-minute move to prevent a partial government shutdown. The last trading day of the month reflected rising investors’ concerns over COVID-19, inflation fears, and budget squabble in Washington, tagging September as the worst month since the onset of the pandemic.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 546.80 points, or 1.6%, to close at 33,843.92, with Walgreens Boots Alliance, Inc. (WBA - Free Report) leading the benchmark into the negative territory with a 3.4% decline. Walgreens Boots Alliance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 slid 51.92 points or 1.2%, to close at 4,307.54 on Thursday. All the 11 major sectors of the broader index closed in the red, led by 2.1% and 1.9% decline in the industrials and consumer staples sectors, respectively. The Nasdaq Composite Index closed at 14,448.58, after declining 63.86 or 0.4%.
On Thursday, the fear-gauge CBOE Volatility Index (VIX) increased 2.6%, to close at 23.14. Declining issues outnumbered advancing ones on the NYSE by a 1.74-to-1 ratio. A total of 12.88 billion shares were traded on the last day of September, higher than the last 20-session average of 10.61 billion.
September Ends Rough Despite Congress’ Short-term Spending Bill
On Thursday, Congress voted through a short-term spending bill, which will help the federal government-run through till early December. The House still aims to pass the $1 trillion infrastructure bill already passed by the Senate. However, the bill’s fate remains uncertain as a portion of the Democrats threaten to block the bill unless moderate members sign to support a separate bill focused on climate change, education, and healthcare. Investors also analyzed Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen’s comments in front of the House Financial Services Committee on inflation remaining high temporarily due to supply bottlenecks as the economy recovers from the pandemic, for COVID relief.
Initial Claims Jumps to a Two-month High
The government reported on Thursday that for the week ending Sep 25,initial claims came in at 362,000, an increase of 11,000, from the previous week's unrevised level of 351,000 and higher than the consensus estimate of 328,000. New jobless claims rose the highest in California. Meanwhile, continuing claims for the week ending Sep 11, came in at 2.802 million, a significant decrease from the week before.
Economic Data Roll-Up
The government yesterday reported that the third estimate for second-quarter Gross Domestic Product (GDP) grew at a 6.7% annual pace, slightly higher than the previous estimate of 6.6%. Government stimulus in spring, rapid vaccination helped businesses reopen and boosted the economy.
In a separate report, the Chicago PMI, that measure of business conditions in the Chicago region slipped in September to the lowest level in seven months to 64.7, lower than the consensus estimate of 65.4, and much lower than 66.8 in the prior month.
Monthly RoundUp
For the month of September, the three major indexes ended in the red, with the Dow closing 4.3% lower. The S&P 500 snapped its seven-straight month winning streak and closed 4.8% lower. The Nasdaq was weighed down by the recent downward spiral in tech and growth stock due to an increase in treasury yield and recorded the worst September in the years, losing 5.3%.
Quarterly RoundUp
In the third quarter of 2021, the Dow slid 1.9%, while the S&P 500 and the Nasdaq added 0.2% and 0.4%, respectively. This quarter markets have been through a rollercoaster ride as reopening plans and economic recovery faced hurdled due to rise in new cases of coronavirus led by the rapid spreading Delta variant. Supply-side constraints, especially chip and shortage in labor constantly pressurized the economy and inflation clouded investors’ sentiments.
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Stock Market News for Oct 1, 2021
Benchmarks closed in the red on Thursday despite Congress’ last-minute move to prevent a partial government shutdown. The last trading day of the month reflected rising investors’ concerns over COVID-19, inflation fears, and budget squabble in Washington, tagging September as the worst month since the onset of the pandemic.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 546.80 points, or 1.6%, to close at 33,843.92, with Walgreens Boots Alliance, Inc. (WBA - Free Report) leading the benchmark into the negative territory with a 3.4% decline. Walgreens Boots Alliance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 slid 51.92 points or 1.2%, to close at 4,307.54 on Thursday. All the 11 major sectors of the broader index closed in the red, led by 2.1% and 1.9% decline in the industrials and consumer staples sectors, respectively. The Nasdaq Composite Index closed at 14,448.58, after declining 63.86 or 0.4%.
On Thursday, the fear-gauge CBOE Volatility Index (VIX) increased 2.6%, to close at 23.14. Declining issues outnumbered advancing ones on the NYSE by a 1.74-to-1 ratio. A total of 12.88 billion shares were traded on the last day of September, higher than the last 20-session average of 10.61 billion.
September Ends Rough Despite Congress’ Short-term Spending Bill
On Thursday, Congress voted through a short-term spending bill, which will help the federal government-run through till early December. The House still aims to pass the $1 trillion infrastructure bill already passed by the Senate. However, the bill’s fate remains uncertain as a portion of the Democrats threaten to block the bill unless moderate members sign to support a separate bill focused on climate change, education, and healthcare. Investors also analyzed Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen’s comments in front of the House Financial Services Committee on inflation remaining high temporarily due to supply bottlenecks as the economy recovers from the pandemic, for COVID relief.
Initial Claims Jumps to a Two-month High
The government reported on Thursday that for the week ending Sep 25,initial claims came in at 362,000, an increase of 11,000, from the previous week's unrevised level of 351,000 and higher than the consensus estimate of 328,000. New jobless claims rose the highest in California. Meanwhile, continuing claims for the week ending Sep 11, came in at 2.802 million, a significant decrease from the week before.
Economic Data Roll-Up
The government yesterday reported that the third estimate for second-quarter Gross Domestic Product (GDP) grew at a 6.7% annual pace, slightly higher than the previous estimate of 6.6%. Government stimulus in spring, rapid vaccination helped businesses reopen and boosted the economy.
In a separate report, the Chicago PMI, that measure of business conditions in the Chicago region slipped in September to the lowest level in seven months to 64.7, lower than the consensus estimate of 65.4, and much lower than 66.8 in the prior month.
Monthly RoundUp
For the month of September, the three major indexes ended in the red, with the Dow closing 4.3% lower. The S&P 500 snapped its seven-straight month winning streak and closed 4.8% lower. The Nasdaq was weighed down by the recent downward spiral in tech and growth stock due to an increase in treasury yield and recorded the worst September in the years, losing 5.3%.
Quarterly RoundUp
In the third quarter of 2021, the Dow slid 1.9%, while the S&P 500 and the Nasdaq added 0.2% and 0.4%, respectively. This quarter markets have been through a rollercoaster ride as reopening plans and economic recovery faced hurdled due to rise in new cases of coronavirus led by the rapid spreading Delta variant. Supply-side constraints, especially chip and shortage in labor constantly pressurized the economy and inflation clouded investors’ sentiments.