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Overnight Markets: Wall Street down as investors await Fed signals
by Himanshu Singh on Aug 20, 2013 at 05:16
Wall Street declined on Monday after energy shares fell and Treasury yields surged to a two-year high as investors awaited signals this week on the Federal Reserve’s stimulus plans.
The Dow Jones industrial average fell 71 points or 0.47%, to 15,010, the S&P 500 lost 10 points or 0.59%, to 1,646 and the Nasdaq Composite dropped 14 points or 0.38%, to 3,589.
With lesser number of economic data scheduled to release this week, investors are focused on the minutes from the July Fed meeting, due on Wednesday, for possible clues into policymakers' thinking.
In the bond market, the US benchmark 10-year note yield touched a two-year high of 2.90% on Monday.
Apache Corp. (APA) tumbled 4.6%, leading a decline among the energy stocks. Exxon Mobil Corp. (XOM) lost 1.1%, Marathon Oil Corp. slumped 4.3% and Valero Energy Corp. was down 2.7%. Cobalt International Energy Inc. (CIE) fell 15% after the oil exploration company said it found no commercial hydrocarbons in its Ardennes well in the Gulf of Mexico.
Financial shares were also among the biggest decliners yesterday with JP Morgan Chase & Co falling 2.7% after a person familiar with the matter said the bank was the target of a federal bribery investigation. Bank of America Corp (BAC.N) fell 1.9%, while Citigroup Inc (C.N) lost 2%.
Zillow (Z.O) shares slumped 7.1% after the company announced a stock offering and said it agreed to buy New York real estate website StreetEasy for $50 million.
Intel Corp (INTC.O) was a bright spot, up 1.7% as the biggest percentage gainer on the Dow after Piper Jaffray upgraded the Dow component and boosted its price target on the stock. Elsewhere in the technology sector, Apple Inc (AAPL.O) gained 1.1% and Google Inc (GOOG.O) advanced 1%.
In deal news, Edwards Group (EVAC) Ltd. surged 18% after Atlas Copco AB agreed to buy the company for $1.2 billion.
In Asia, shares declined on Tuesday in late morning session as metals prices fell for the first time in five days and profit at QBE Insurance Group Ltd. (QBE) slumped.
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