It was a wild day for the stock markets, making strong gains only to swing back to a loss on the day. The Dow 30 closed lower by 160, the S&P 500 sold off 23, and the Nasdaq 100 closed down on the day by 116 as tech stocks continue to slide lower.
Sector News:
Oil and Energy (USO ) was once again the day's main focus as the price of oil shot back to highs, adding 3.2% on the day. The rapid recovery sent almost every oil stock, and many energy stocks, higher on the day as investors worked to price in the effect of the new Iranian ban of crude imports. Some notable names that ended higher today include Freeport McMoran (FCX ) and Apache (APA ), with gains of 4% and 3.8% respectively.
Tech stocks (SMH ) continued to move lower. Semiconductors alone are now lower on the week by about 4%. The major losers today include Micron Technology (MU ) and Intel (INTC ), which slid 4% and 1% respectively.
Banks (XLF ) continue to weigh on the broad markets as they hit at moving below short-term support. Bigger banks continue to focus on the flattening yield curve as the main source of concern. As the rate hikes continue to arrive consistently over the course of the year, and the yield curve doesn't steepen, the anxiety builds. So far the rate hikes have not helped as many analysts had hoped.
Stock News:
Conagra Brands (CAG ) shares fell 7% today as the company announced a deal to buy Pinnacle Foods for about $11 billion, or $68 a share. The announcement sent shares back to the lows of the year.
Shares of World Wrestling Entertainment (WWE ) soared to new highs again as the company announced new deals with Fox (FOXA ) and USA Networks. The new deal represents a 300% increase in the royalties that WWE will collect for their programming. Shares are higher by over 115% this year.
General Mills (GIS ) shares traded in a wild range today as investors analyzed the company's earnings release, which included mixed news; earnings were slightly better than expected, but the release noted that General Mills anticipates "flat" growth going forward. Shares are lower by 20% on the year.
