By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Freeport-McMoRan, GameStop among day's big movers
The Dow was struggling to find direction in late-morning trade
Friday as Federal Reserve Vice Chairman Stanley Fischer on CNBC
said the economy is "working pretty well," and indicated that the
central bank is moving toward raising rates.
The Dow briefly ticked higher after the Fed No. 2's comments but
slipped lower later. The S&P 500 also slipped into the red as
did the Nasdaq later in the session.
Hand-wringing around when the Fed will hike rates has been one
of the driving forces of stock-market uncertainty, along with
China's troubled economy.
Although Fischer's comments didn't provide much clarity on the
Fed's game plan for rates, stocks appeared to interpret his
comments as pro rate hike.
Still, stocks look to end one of the most tumultuous weeks in
recent memory with modest gains. They are in negative territory for
the year after a plunge on Monday sent them into correction
territory.
"The magnitude of the drop on Monday caught a lot of investors
off guard and they are still struggling to find what the fair value
is for stocks, which is why we are continuing to see heightened
volatility," said Channing Smith, portfolio manager at Capital
Advisors.
The S&P 500 dipped in and out of negative territory, trading
virtually flat at 1,986. Most of the 10 main sectors were lower,
but losses were modest. The energy sector rallied following a big
jump in oil prices. The Dow Jones Industrial Average dipped 45
points, or 0.3%, to 16,609. The Nasdaq Composite ruenwd
edged higher, adding 3 points, or 0.1%, to 4,815. The Russell
2000 also edged higher, climbing 8 points, or 0.7%, to 1,161.
Earlier in the session, market reaction to consumer spending and
inflation
(http://www.marketwatch.com/story/core-inflation-eases-in-july-and-moves-further-away-from-feds-target-2015-08-28),
both of which ticked up less than expected, was largely muted.
Inflation, which has remained below the Federal Reserve's target,
is likely to influence policy makers's decision over the rate
increases this year.
Investors will look to take their cues from Federal Reserve
officials, who are attending the closely watched Jackson Hole
summit
(http://www.marketwatch.com/story/central-bankers-at-jackson-hole-search-for-answers-on-low-inflation-2015-08-27).
Opinion: A surefire strategy to keep calm and make some money in
this crazy market
(http://www.marketwatch.com/story/a-surefire-strategy-to-keep-calm-and-make-money-in-this-crazy-market-2015-08-27)
The sharp rebound on Wall Street over the previous two sessions
came as investors took comfort from signs China was trying to
stabilize its economy and market, and from upbeat U.S. growth
data.
"Current markets can be described as 'no man's land', where
volatility is uncomfortable and credit spreads have widened. We
expect volatility to continue for the next six weeks or so, but we
are not seeing conditions for a bear market," said Smith.
Investors also kept a close eye on crude prices Friday, which
jumped more than 4%. WTI crude for October swung between gains and
losses after surging more than 10% on Thursday, driven higher by a
report that Venezuela asked the Organization of the Petroleum
Exporting Countries to hold an emergency meeting.
Jackson Hole summit: Another potential reason for investor
caution is the Jackson Hole central bankers' summit in Wyoming on
Friday and Saturday, where key Federal Reserve speakers are due to
appear: Fed Vice Chairman Stanley Fischer will talk about inflation
developments on Saturday, with Atlanta Fed President Dennis
Lockhart and St. Louis Fed President James Bullard to follow later.
Here's a schedule of the speakers
(http://www.marketwatch.com/story/fischer-carney-to-headline-jackson-hole-summit-2015-08-27).
(http://www.marketwatch.com/story/fischer-carney-to-headline-jackson-hole-summit-2015-08-27)The
meeting comes after days of financial-market turmoil have driven
some investors to shift their expectations for a U.S. interest-rate
hike to December from September.
Opinion: Stocks climbing strongest 'wall of worry' in five years
(http://www.marketwatch.com/story/stocks-climbing-strongest-wall-of-worry-in-five-years-2015-08-28)
Economic data:Core inflation moderated in July
(http://www.marketwatch.com/story/core-inflation-eases-in-july-and-moves-further-away-from-feds-target-2015-08-28),
the government reported Friday, giving the Federal Reserve another
reason to hold short-term interest rates steady at their September
policy meeting.
Stocks to watch: Share of Freeport-McMoRan Inc. (FCX) jumped
7.5%. Billionaire investor Carl Icahn disclosed a stake in the
miner late Thursday
(http://www.marketwatch.com/story/carl-icahn-discloses-stake-in-freeport-mcmoran-may-seek-board-seat-2015-08-27),
saying the company's shares are undervalued, according to a
filing.
GameStop Corp. (GME) shares plunged 8% following a very bearish
analyst note and downgrade on the company's stock by Benchmark.
Chinese gains tempered:The Shanghai Composite Index
(http://www.marketwatch.com/story/asian-markets-ride-tide-of-strong-us-growth-2015-08-28),
which has been heavily influential at times for global equities
this week, climbed 5.4%. Analysts voiced suspicions on Friday the
government was buying stocks to boost the index, which ended a
roller-coaster week down 8%.
European stocks
(http://www.marketwatch.com/story/europe-stocks-pull-back-as-volatile-week-nears-an-end-2015-08-28)
wavered on Friday, with the Stoxx Europe 600 index down 0.4% and
set for a small loss to end the week. Gold prices rose marginally,
while the dollar held largely steady.
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(END) Dow Jones Newswires
August 28, 2015 12:03 ET (16:03 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.