MARKET SNAPSHOT: U.S. Stocks Fall At The Open As Rate-hike Fears Mount
20 May 2016 - 12:10AM
Dow Jones News
By Ellie Ismailidou and Victor Reklaitis, MarketWatch
Wal-Mart, Cisco jump after earnings, buoying the Dow
U.S. stocks opened lower on Thursday as signs that the Federal
Reserve's next interest-rate hike could come as early as June
spooked investors.
A flurry of mixed economic data failed to calm investors' fears
that the Fed could raise rates as soon as June. But strong earnings
reports from Wal-Mart(WMT) and Cisco (CSCO) helped offset declines
somewhat.
The S&P 500 fell 7 points, or 0.3%, to 2,040, led by sharp
losses in telecom stocks, down 1.4%. The energy sector was the
second-worst performer, down 0.7%, weighed by a fresh drop in oil
prices
(http://www.marketwatch.com/story/oil-prices-drop-on-dollar-strength-rising-inventories-2016-05-19),
which slipped again due to a stronger dollar and an unexpected
increase in U.S. crude inventories. Lifting the index was a 0.4%
gain in consumer-staples shares.
The Dow industrials fell 64 points, or 0.4%, to 17,458, led by
losses in Caterpillar Inc.(CAT) and Chevron Corp.(CVX), both down
roughly 1%. But Wal-Mart's nearly 8% share rise, which put the
stock on track to log best one-day gain in more than seven years,
added nearly 33 points to the blue-chip gauge. Cisco (CSCO) up over
5%, was also buoying the Dow.
Meanwhile, the Nasdaq Composite fell 23 points, or 0.5%, to 4,716.
Thursday's moves come after minutes from the Fed's latest
meeting
(http://www.marketwatch.com/story/most-on-fed-ready-to-hike-rates-in-june-if-economic-data-strong-minutes-show-2016-05-18)
suggest the Fed is seriously considering raising interest rates at
its upcoming meeting in June, provided the U.S. economy continues
to strengthen.
Market strategists said the idea that rates could rise sooner
than they expected has made investors uncomfortable, causing them
to dump stocks.
(END) Dow Jones Newswires
May 19, 2016 09:55 ET (13:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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