Stocks opened in negative territory as the market appeared to pause following yesterday's big rally. Investors appeared to be waiting on the release of the Fed minutes from the last FOMC meeting as well as reacting to the latest headlines on trade negotiations with China. The minutes, when released in the afternoon, implied the Fed would likely raise rates in December but be cautious after that. The market read the minutes as dovish, pushing the averages higher, though they then pulled back to close slightly lower.
ECONOMIC EVENTS: In the U.S., initial jobless claims rose 10,000 to 234,000 in the week ended November 24. Personal income rose 0.5% in October, with spending up 0.6%. The NAR pending home sales index fell 2.6% to 102.1 in October. In White House news, U.S. President Donald Trump said that he has canceled his previously scheduled meeting with Russian President Vladimir Putin in Argentina during G-20. In Federal Reserve news, minutes from the latest FOMC meeting showed that the committee discussed modifying language around "further gradual" rate increases. The Fed added that it discussed the potential of a technical adjustment in the IOER rate before the December meeting if necessary to keep the federal funds rate well within the target range established by the FOMC.
COMPANY NEWS: Shares of Deutsche Bank (DB) fell 5% in New York trading after the banking giant said a number of searches are being conducted at its offices in Germany in connection with the so-called "Panama Papers." The money laundering investigation against employees and customers of Deutsche Bank concern activities from 2013 to the present year, Bloomberg reported, citing a spokeswoman for Frankfurt prosecutors.
Bayer (BAYRY) announced a series of portfolio, efficiency and structural plans, including its intentions to exit the Animal Health business and allocate the resources necessary to support Animal Health to Bayer's core businesses of Pharmaceuticals, Consumer Health and Crop Science. Bayer also said it will review its strategic options in the coming months with a view to exiting the Coppertone and Dr. Scholl's product lines. The planned efficiency and structural measures will include a reduction of around 12,000 of 118,200 jobs worldwide, with a significant number of them in Germany, the company added.
The former CEO of CBS (CBS), Les Moonves, faces a new hurdle in securing a severance payment from the television network owner following a New York Times report that detailed steps the executive allegedly took to prevent sexual assault charges from coming to light.
Meanwhile, Arconic (ARNC) shares were 2.5% higher after Reuters reported that Elliott Management has stepped in to assume potential liabilities on the sale process for the company.
MAJOR MOVERS: Among the noteworthy gainers was Jack in the Box (JACK), which rose 6% after Reuters reported that the fast food chain is exploring options that could include a sale of the company. Also higher were Abercrombie & Fitch (ANF) and Tech Data (TECD), which gained a respective 21% and 22% after reporting quarterly results.
Among the notable losers was Catalyst Pharmaceuticals (CPRX), which slid 11.5% after the FDA approved Firdapse tablets for the treatment of adults with Lambert-Eaton Myasthenic Syndrome. Also lower were Tilly's (TLYS) and Express (EXPR), which fell 21% and 6%, respectively, after reporting quarterly results.
INDEXES: The Dow slipped 27.59, or 0.11%, to 25,338.84, the Nasdaq fell 18.51, or 0.25%, to 7,273.08, and the S&P 500 declined 5.99, or 0.22%, to 2,737.80.
Deutsche Bank
-0.47 (-4.75%)
Bayer
+ (+0.00%)
Use VIAC, VIACA
+0.24 (+0.44%)
Arconic
+0.52 (+2.50%)
Jack in the Box
+5.04 (+6.03%)
Abercrombie & Fitch
+3.6 (+21.04%)
Tech Data
+16.43 (+22.34%)
Catalyst Pharmaceuticals
-0.37 (-11.78%)
Tilly's
-3.19 (-20.93%)
Express
-0.36 (-5.04%)