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Market Update

Wall Street Turns Lower A Day After Rate Hike, Stable World Markets

Author: Nichole Harper
Last Update: 11:35 AM ET December 17 2015

11:35 AM New York City, New York – A day after rate hike, stocks on Wall Street traded lower and investors shifted focus to latest weekly jobless claims. Unemployment claims declined 11,000 in the previous week. FedEx and Oracle diverged on earnings. European markets jumped on widening economic activities.

Global stocks surged after the much anticipated Fed move on the interest rate materialized but stocks on Wall Street day after settled and looked down.

Federal Reserve lifted its benchmark rate to 0.25% from near zero in a unanimous decision and said future rate increases will be gradual and dependent on the inflation pick up.

Stocks surged on Wall Street after the rate hike but settled and shifted focus to the latest weekly jobless claims.

Seasonally adjusted weekly jobless claims declined 11,000 to 271,000 from the previous week’s unrevised claims of 282,000.

The preliminary insured unemployment rate in the week ending December 5 was 1.7% unchanged from the prior week''s unrevised rate, the Department of Labor said.

The U.S. preliminary current account deficit widened to $124.1 billion in the third-quarter from the revised $111.1 billion in the second-quarter, the Department of Commerce said.

Goods and services deficit in the quarter increased $133.7 billion and exports fell to $379.9 billion and imports declined $569.9 billion.

On Wall Street, Tollbooth Strategy Index slipped 31.55 or 0.3% to 10,917.20.

S&P 500 index dropped 16.46 or 0.8% to 2,056.23 and the Nasdaq Composite Index slipped 30.27 or 0.6% to 5,041.04.

Crude oil in New York slid 61 cents to $34.91 a barrel and gold plunged $20.15 to $1,052.17 an ounce.

U.S. Movers

FedEx Corporation (FDX) soared 4.6% or $6.79 to $155.51 after the air freight and logistics company reported revenues in the second-quarter ending in November jumped 4% from a year ago to $12.45 billion.

Net income in the quarter advanced 4.2% to $691 million or $2.44 per diluted share compared to $691 million or $2.31 per share from the same quarter last year.

FedEx said revenues for its express business declined 6% to $6.59 billion while revenues in ground segment soared 32% to $4.05 billion from and revenues in freight business slumped 2% to $1.55 billion.

The air freight company forecasted adjusted earnings per share for 2016 between $10.40 and $10.90.

Oracle Corporation (ORCL) slumped 3.5% or $1.38 to $37.53 after the enterprise software developer reported revenues in the second-quarter ending in November plunged 6% from a year ago to $8.99 billion.

Net income in the quarter tumbled 12% to $2.20 billion or 51 cents per diluted share compared to $2.50 billion or 56 cents per share from the same quarter last year.

Oracle said revenues in total cloud and on-premise software business dropped 4% to $7 billion and revenues hardware business plummeted 16% to $1.12 billion while total services revenues declined 8% to $861 million.

European Markets

Stock markets across Europe surged on Thursday after the U.S. Federal Reserve increased its benchmark interest rate for the first time in nine years, and the latest releases of European economic data signaled an upward trend.

Seasonally adjusted construction activities in September rose 0.5% in euro zone and 0.1% in the wider region of EU28 from September.

In September, activities in the euro zone fell 0.7% and 0.2% in EU28, the Statistical Office of the European Communities said.

Compared to year ago month activities in the euro zone grew 1.1% and 1.2% in the wider region of EU28.

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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