After Market: Fear of Fed Action Makes Investors Skittish

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Worries about interest rates rising earlier than anticipated sent Wall Street lower Thursday, but GoPro flew high on its first day of trading.

Comments by the head of the Federal Reserve Bank of St. Louis rattled investors. James Bullard said he predicts rates will begin to rise by the end of the first quarter of 2015. And there was more bad news. Economists lowered their growth forecasts for the second quarter, citing weak consumer spending.

Federal Reserve Bank of St Louis President James Bullard Interview
Getty ImagesFederal Reserve Bank of St. Louis President James Bullard
At the end of the day the Dow Jones industrial average (^DJI) dropped 21 points, the Nasdaq composite (^IXIC) slipped almost 1 point and the Standard & Poor's 500 index (^GPSC) was lower by 2 points

But GoPro (GPRO) soared on its first day of trading. Shares of the initial public offering were priced at $24, and closed the day at $31.35. That's a gain of 30 percent from the IPO price.

Other top gainers included storage and information management firm Iron Mountain (IRM). Its shares rallied 20 percent after the IRS gave it approval to convert itself into a real-estate investment trust.
And Nabors (NBR) was also a winner up 6 percent after agreeing to sell its fracking unit for $2.8 billion to C&J Energy (CJES).

Aluminum giant Alcoa (AA) gained 2.5 percent, on news that it's buying aircraft parts maker Firth Rixson for $2.8 billion. It's been a stellar year so far for the stock -- it's up 40 percent since the beginning of 2014.

And ConAgra (CAG) known for its Slim Jim beef jerky and Hunt's tomato ketchup rose almost one percent on quarterly revenue that beat the street.

But Bed Bath & Beyond (BBBY) disappointed on earnings and lowered its outlook, sending the stock lower by 7 percent. 2014 has not been kind to its shareholders. The stock is down almost 30 percent year to date.

And finally, the U.S. shares of European banks got hit on news New York's Attorney General is suing Barclays for failing to warn its clients about the presence of high-frequency traders in its dark pools. Barclays (BCS) shares were down more than 7 percent, UBS (UBS) fell almost 2.5 percent and Credit Suisse (CS) was off by 3.5 percent.

-Produced by Karina Huber.

What to Watch Friday:
  • The University of Michigan releases its final survey of consumer sentiment for June at 9:55 a.m. Eastern time.
The following major companies are due to release quarterly financial statements:
  • KB Home (KBH)
  • The Finish Line (FINL)

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SPQR

The economists have no idea what is going on just like before! Raise interest rates to 4% immediately and then it will become apparent what is really happening. The US cannot defeat Syria, Iran, Russia, Iraq, or any of them. Rather than money send them birth control. US corporations are only interested in money for themselves and plan to leave earth on rockets to escape and they won't make it so they should be trying their hardest to save the planet!!!

June 27 2014 at 12:29 PM Report abuse +1 rate up rate down Reply
k4jlp

If you folks really knew the truth.....

June 27 2014 at 6:25 AM Report abuse +1 rate up rate down Reply
1 reply to k4jlp's comment
TWBCPA

Jult like all other bad news most of already know the truth, but do not want to address the ramifications.

June 27 2014 at 1:45 PM Report abuse rate up rate down Reply
k4jlp

Gee Leroy, I thought it was the lure of a quick buck off the backs of Americans via boosted energy price excuses on the Commodity Market for the "Iraq situation"...remember, there is wealth to be made off of WAR.......

June 27 2014 at 6:24 AM Report abuse +1 rate up rate down Reply