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Market Update

Fed Inaction Extends Market Volatilty, S&P 500 Index Drops 1.6%


Author: Nichole Harper
ticker.com
Last Update: 4:38 AM ET September 18 2015

4:35 PM New York City, New York – Stock market indexes and bond yields declined after the latest Fed inaction failed to remove a layer of uncertainty. Fed worried that the slowdown in China and emerging markets and volatile financial markets may affect domestic economy but showed willingness to a modest tightening before the year-end.]

Stocks on Wall Street turned lower on the final trading day of the week as investors worried that the rate uncertainty may continue till the year-end.

U.S. bond yields continued to decline after the latest Fed inaction and 10-year U.S. Treasury yield dropped to a week-and-a-half low of 2.13%. Yield on five-year bond declined to a three-week low of 1.43%.

Market indexes steadily declined and the widely followed indexes dropped between 1.4% and 1.6% in New York.

On Wall Street, Tollbooth Strategy Index slipped 58.36 or 0.6% to 10,433.60.

S&P 500 index dropped 32.51 or 1.6% to 1,958.08 and the Nasdaq Composite Index slumped 66.71 or 1.4% to 4,827.23.

Crude oil in New York decreased $1.93 to $44.94 a barrel and gold soared $21 to $1,138.10 an ounce.

U.S. Movers

Adobe Systems Inc (ADBE) jumped 3.3% or $2.64 to $82.95 after the software company reported total revenues in the third-quarter ending on August 28 surged 22% from a year ago to $1.22 billion.

Net income in the quarter soared to $174.5 million or 34 cents per diluted share compared to $44.7 million or 9 cents from the same quarter last year.

Adobe forecasted revenues for the fourth-quarter between $1.275 billion and $1.325 billion and earnings per share in the range of 32 cents to 38 cents.

Equifax Inc. (EFX) slipped 33 cents to $98.03 after the outsourcing services provider made non-binding proposal to acquire Australia-based data analysis provider Veda Group Limited for $2.70 per share in cash valued at about $2.3 billion or US$1.6 billion.

The transaction representing 35% premium of yesterday’s closing price of $1.995.

European Markets

In London trading, FTSE 100 index slipped 76.86 or 1.2% to 6,110.13 and in Frankfurt the DAX index slumped 303.61 or 2.9% to 9,930.63.

In Paris, CAC 40 index declined 131.63 or 2.8% to 4,525.78.

For the week, FTSE 100 index slid 0.1% and the DAX index dropped 2% and the CAC 40 index slipped 0.5%.

Deutsche Bank AG declined 4.2% to €25.25 after the Germany-based bank said it will close its corporate banking and security operations in Russia and it will now operate from international hubs.

As the bank''s new co-chief executive, John Cryan, looks to reshape its business and said its other operations in Russia will remain as it is.

Worldpay Group Plc, the U.K.-based payment processor plans to launch an initial public offering to raise £890 million or about $1.4 billion on London Stock Exchange in next month and expected to sell about 25% of its shares in the offering.

The company owned by the private equity firms Advent International and Bain Capital.

Worldpay reported net revenue in the first-half ending in June of £465.7 million and for fiscal 2014 net revenue of £863.4 million.

Asian Markets

Investors’ hopes were dashed after the U.S. Fed held out for a possible rate before the year’s end but did not provide any more specific time frame.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc