Close Update: Bannon's Ouster Fails to Compensate For Persistent Risk Aversion

Close Update: Bannon's Ouster Fails to Compensate For Persistent Risk Aversion

Wall Street’s major averages surrendered modest midday gains and closed lower for a second day after the ouster of President Donald Trump’s controversial chief strategist Steve Bannon failed to compensate for lingering concerns about the fate of Trump’s pro-growth agenda and tensions with North Korea.

And after a tumultuous week which saw the blue chip index endure its largest one-day decline since May, the Dow Jones Industrial Average and S&P 500 both closed lower for a second week, while the Nasdaq was lower for a fourth week in a row with a loss of 0.60%.

Stocks were sitting on the fence for most of the day as investors weighed the events in Spain with worries that Trump’s chief economic advisor and pro-business advocate Gary Cohn would leave the White House over conflicts with Bannon. The news of Bannon’s ouster was greeted positively by shell-shocked investors, but failed to alleviate the concern over the risk of war with North Korea. Losses accelerated into the close in the wake of a tweet from Bannon’s Breitbart News — #WAR — that hinted at an adversarial relationship with the White House.

Economic data was positive as the preliminary Univ of Michigan consumer sentiment index climbed to a 7-month high of 97.6, beating expectations to rise slightly to 94.0 from July’s 93.4.

Earnings were mixed with shares of Foot Locker ( FL ) falling to their lowest level in more than three years after reporting a substantial decline in same store sales, while Ross Stores ( ROST ) and Gap ( GPS ) both beat Wall Street’s expectations.

Here’s where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was down 76.22 points (-0.35%)

S&P 500 was down 4.46 points (-0.18%)

Nasdaq Composite Index was down 5.39 points (-0.09%)

GLOBAL SENTIMENT

FTSE 100 was down 0.86%

Nikkei 225 was down 1.18%

Hang Seng Index was down 1.08%

Shanghai China Composite Index was up 0.01%

UPSIDE MOVERS

(+) SPWH (+25.43%) Q2 results beat Wall Street’s expectations

(+) ROST (+10.67%) Reported better-than-expected sales and earnings

(+) CPN (+10.52%) Agreed to be acquired for $15.25 per share by an investor group led by Energy Capital Partners

DOWNSIDE MOVERS:

(-) FL (-27.92%) Missed EPS and sales estimates, comparable store sales missed guidance

(-) DE Beat (-5.43%) Q3 estimates, but farm sales outlook disappointed, downgraded at Baird

(-) HIBB (-5.22%) Q2 loss narrowed on below consensus revenue, lowered FY EPS guidance

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

Related posts