By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Nasdaq is taking it on the chin as biotech sinks
The Dow industrials was switching between gains and losses, but
sliding mostly lower on Thursday, as investors remained cautious
ahead of minutes from the Federal Reserve's most recent
policy-setting meeting.
Meanwhile, the Nasdaq Composite Index was slumping, weighed down
by a 2.5% drop in the biotech sector (IBB). The tech-heavy index
was losing 45 points, or nearly 1%, at 4,747.
The blue-chips index were 14 points, or 0.1%, lower at 16,896,
with DuPont (DD) leading gainers, up about 2%. Apple Inc. (AAPL),
off nearly 2%, was weighing on the benchmark average
The S&P 500 was little changed in afternoon trade at 1995,
as the broad stock-market index tried to break above the
psychologically important 2,000 level. Losses in health-care and
technology stocks were slightly outweighing gains in materials and
utilities, keeping the index in negative territory. Six of its 10
main sectors trading higher.
"The market has used up most of its internal energy when it
rallied hard last week. What we are seeing now is a pause as
markets need to gain some strength before the next rally," said
Jeffrey D. Saut, chief investment strategist at Raymond James &
Associates.
Investors hope the Fed minutes might shed some light into policy
makers decision over impending interest-rate hikes. Fed minutes are
expected to be released at 2 p.m. Eastern Time.
Saut expects the S&P 500 to climb to 2,030 over the next
couple of weeks and finish higher at the year-end.
(http://www.marketwatch.com/story/china-could-become-a-big-problem-for-us-stocks-again-2015-10-07)Others
noted that investors are also cashing in on some gains for U.S.
stocks. "The markets have been boosted by the prospect of an
interest-rate increase being pushed back to next year, following
last week's poor jobs report," said Craig Erlam, senior market
analyst at Oanda, in emailed comments.
Need to know: Why this stock-market rebound isn't just a 'flash
in the pan'
(http://www.marketwatch.com/story/why-this-stock-market-rebound-isnt-just-a-flash-in-the-pan-2015-10-08)
Fed minutes ahead: Some insight on the Fed's thinking could come
with the release of the minutes of the Sept. 17 Fed meeting. In
particular, markets will be looking for more clues on why the
central bank held back on an interest-rate hike. They are also
likely to focus on what the U.S. central bankers thought about
China and job creation
(http://www.marketwatch.com/story/four-things-to-watch-in-fed-minutes-from-september-2015-10-07).
September saw a unexpectedly sharp drop in payrolls.
The jobless claims reported showed the number of people who
applied for U.S. unemployment benefits
(http://www.marketwatch.com/story/jobless-claims-fall-to-263000-lowest-since-july-2015-10-08)
fell by 13,000 to 263,000 in the week ended Oct. 3, marking the
lowest level since mid-July.
Stocks to watch: Investors will also be braced for the
unofficial kickoff to earnings season, which comes after the close
of trading Thursday with earnings from Alcoa Inc.(AA). Shares in
Alcoa were down 1.6%.
The aluminum producer is expected to post a year-over-year
profit decline for the first time in six quarters
(http://www.marketwatch.com/story/what-to-watch-for-in-alcoas-earnings-2015-10-05).
It could lead out what's expected to be the weakest reporting
season in six years for S&P 500 companies.
Shares of Encana Corp. (ECA) rose 3.6% after Canada Pension Plan
Investment Board (CPPIB) and The Broe Group said they have agreed
to buy oil and gas assets from the company for a value of about
$900 million
(http://www.marketwatch.com/story/cppib-and-broe-group-to-buy-encana-oil-gas-assets-for-900-million-2015-10-08).
Dell Inc. is in talks to combine with EMC Corp.(EMC), according
to people familiar with the matter, reported The Wall Street
Journal late Wednesday
(http://www.marketwatch.com/story/dell-discussing-merger-with-emc-sources-say-2015-10-07).
EMC shares rose 4.9%.
Shares of Amazon.com Inc.(AMZN) fell 2.3% after a Bloomberg
report
(http://www.marketwatch.com/story/amazon-share-rebound-after-report-of-live-tv-service-ambitions-2015-10-07)
that the online retailer could be showing interest in launching a
live, online TV service. Etsy (ETSY) shares fell 5% after Amazon
announced the launch of a rival to the online crafts marketplace
(http://www.marketwatch.com/story/etsys-stock-on-track-for-a-selloff-after-amazon-launches-rival-service-2015-10-08).
Other markets: The Shanghai Composite Index closed up just under
3%, as that market reopened after a five-session holiday break, but
the gain wasn't enough to satisfy investors. The Hang Seng China
Enterprises Index rallied 11.5%, while the Chinese market was
closed, and investors had expected bigger gains from China, said
Angus Nicholson, market analyst at IG.
Also read: China could become a big problem for stocks again
(http://www.marketwatch.com/story/china-could-become-a-big-problem-for-us-stocks-again-2015-10-07)
The Nikkei 225 index finished down nearly 1%, after weak
Japanese machinery orders prompted buying of the Japanese yen ,
which rose against the U.S. dollar
(http://www.marketwatch.com/story/us-dollar-lower-against-yen-as-nikkei-falls-2015-10-08-21031810).
European stocks traded mixed, with the FTSE 100 index on track
for a seven-day winning streak
(http://www.marketwatch.com/story/ftse-100-breaks-six-day-winning-streak-ahead-of-boe-meeting-2015-10-08).
The Bank of England left key interest rates unchanged at the
conclusion of its rate-setting meeting.
Oil prices
(http://www.marketwatch.com/story/oil-prices-rise-but-market-concerned-over-us-stockpiles-2015-10-08)
continued to gain, though a surprise rise in U.S. inventories was
keeping that advance in check. Oil futures were up 1.3%. Gold
prices declined 0.8%.
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(END) Dow Jones Newswires
October 08, 2015 13:17 ET (17:17 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.