Stock Market News For March 03, 2017

Stock Market News For March 03, 2017

Stock Market News For March 03, 2017

After reaching all-time highs a day before, benchmarks closed in the red on Thursday following news that federal agents had searched Caterpillar’s Illinois office. Moreover, markets cooled with financial sector being the biggest decliner yesterday. Separately, Snapchat registered strong performance after the company gave the biggest initial public offering (IPO) since 2014.

The Dow Jones Industrial Average (DJI) decreased 0.5%, or 112.58 points to close at 21,002.97. The S&P 500 fell 0.6% to close at 2,381.92. The tech-laden Nasdaq Composite Index closed at 5,861.22, losing 0.7%. The fear-gauge CBOE Volatility Index (VIX) declined 5.8% to settle at 11.81. A total of around 7.4 billion shares were traded on Thursday higher than the last 20-session average of 6.9 billion shares. Decliners significantly outpaced advancing stocks on the NYSE. For 71% stocks that declined, 26% advanced.

What Dragged The Benchmarks?

Caterpillar Inc’s (CAT - Free Report) shares fell 4.3% following news that federal law enforcement officials from the Federal Deposit Insurance Corp.'s Office of Inspector General, Internal Revenue Service's Criminal Investigation Division and Department of Commerce's Office of Export Enforcement had searched Caterpillar’s Illinois facilities. Declines in Caterpillar shaved more than 100 points off the Dow yesterday.

Additionally, investors booked profits which had a negative impact on key S&P 500 sectors. The Financial Select Sector SPDR (XLF) decreased 1.6% and was the worst performing sector among the S&P 500. Key component from this sector like Goldman Sachs Group, Inc. and JPMorgan Chase & Co. fell 0.7% and 1.6%, respectively.

Shares of Snap Inc., the parent company of Snapchat, rose 44% after the social media firm finally priced its initial public offering at $17 per share, above the expected range of $14 to $16. Snapchat has been dubbed as the biggest IPO since Chinese e-commerce giant Alibaba went public in 2014.

Snap Inc. has offered 200 million Class A shares, which will help it raise $3.4 billion and the company will be valued at nearly $24 billion. Snap Inc. will begin trading on NYSE starting from Mar 2, 2017 under the ticker symbol SNAP.

Moreover, Fed Governor Lael Brainard said that following an improved domestic and global economy it will be "appropriate soon" for the Fed to increase key interest rates. Also, Fed Governor Jerome Powell said that "the case for a rate increase for March has come together."

In economic news, the U.S. Department of Labor reported that initial claims declined by 19,000 to a level of 223,000 for the week ending Feb 25. This is the lowest levels witnessed since 1973 and is also below the consensus estimate of 245,000.

Have any Question?

We're here to help. Send us an email or call us on +65 3108 0737. Please feel free to contact our experts.

Contact Us
Capital Management Capital Management
Loading...