Closing Bell: Stocks End Mostly Upbeat Day on Another Down Note

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new york stock exchange traders investing economy budget battle
Richard Drew/AP
Stocks ended the day mostly lower Tuesday, marking their fourth straight decline. Though markets stayed in positive territory for most of the day after fresh housing data suggested an improving economy, gains faded into loses in the final half hour of trading as investors grew more cautious due to slipping consumer confidence, and doubts about the outcome of budget negotiations in Washington.

The Dow Jones industrial average (^DJI) dipped 66 points, or 0.4 percent, to 15,334, the Standard & Poor's 500 index (^GPSC) lost 4 points, or 0.2 percent, to 1,697 and the Nasdaq composite index (^IXIC) nudged up 2 points to 3,768.

Volatility was in the air, although the refusal of Senate Republican leaders to get behind a tea party backed House bill to fund the government while defunding Obamacare reduced the odds of a government shutdown. But it clearly didn't eliminate the possibility: Signs still point to a frantic last-minute showdown among conservatives who want to cancel funding for the Affordable Care Act and those Republicans who fear voter anger should they shut down the government. However, many on Wall Street expect any shutdown to be short and not affect markets deeply.

In corporate news, shareholders of Smithfield Foods (SFD) approved a plan to sell the company to Shuanghui International Holdings for $34 a share, or $4.72 billion in cash. The deal, expected to close Thursday, will be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion including debt.

Social media network Twitter is leaning toward picking the New York Stock Exchange instead of Nasdaq for its highly anticipated initial public offering, Reuters report, citing an anonymous source. Sources close to the exchanges told the news agency that Twitter hasn't made its decision yet. The parent companies to the exchanges, NYSE Euronext (NYX) and Nasdaq OMX Group (NDAQ), as well as Twitter had no comment.

Chrysler Group is reluctantly preparing for an initial public offering of some of its shares. The automaker is proceeding with the IPO after it failed to reach an agreement on the value of the stock with the retiree trust, known as VEBA, that owns it.

In commodities news, the price for a barrel of benchmark U.S. crude fell 46 cents to $103.13, while gold slipped $4.50 to $1,322.50.

More Stocks in the News:
  • Facebook (FB) shares jumped 2.7 percent to $48.44 after the South China Morning Post reported the online social media giant and other websites deemed sensitive and blocked by the Chinese government will be accessible in a planned free-trade zone in Shanghai.
  • Lennar (LEN) shares led discretionary stocks higher with a 1.5 percent rise to $36.05 after the No. 3 U.S. homebuilder reported a better-than-expected quarterly profit.
  • Shares of Applied Materials (AMAT) jumped 9.1 percent to $17.45 after the chipmaker and Tokyo Electron said they will merge in an all-stock deal, creating a $29 billion company.
  • Red Hat (RHT), the world's largest commercial distributor of the Linux operating system, reported late on Monday a slower growth in billings than analysts had expected. Its shares shed 11.6 percent to $46.77.
  • Carnival (CCL), the cruise ship operator, fell 7.8 percent to $34.50 after the company said that it expects revenue to drop more than its prior forecast.
What to Watch Wednesday:
  • The Commerce Department reports durable goods orders for August at 8:30 a.m. Eastern time and August new home sales at 10 a.m.
These major companies are scheduled to report quarterly corporate earnings:
  • AutoZone (AZO)
  • Bed, Bath & Beyond (BBBY)
-Compiled from staff and wire reports.



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petarmladenovic

ASML Valuation suggests a higher amount of price risk, and Earnings Quality, Balance Sheet Quality and
Operating Efficiency is weak. When combined, ASML deserves a SELL rating. PE is 29.7028, among the highest in the industry. ASML will underperform the market over the next 12 months and us recommends that investors sell it now. Bernanke over ballooned stock with printing money he can’t exit inflation coming perfect condition for market crash and ASML late investor will lose everything! Regular investor bewares!
OUR EVALUATION OF ASML
Jefferson Research
ASML PE is 27.6113, among the highest in the industry.
ASML HOLDING NV -ADR Valuation suggests a higher amount of price risk, and Earnings Quality, Balance Sheet Quality and Operating Efficiency are weak. When combined, ASML deserves a SELL rating.
Even though the Balance Sheet rating improved during the quarter on strengthening liquidity, this was offset by weakness in the Valuation rating. Combined, the changes were insufficient to raise the overall rating from a SELL.
VALUATION: MOST RISK
An unfavorable valuation (a MEDIUM RISK or MOST RISK rating) implies higher potential downward price risk that is evidenced by a company price multiple that is higher than the corresponding sector average. The valuation rating is based on both absolute and relative levels at ASML HOLDING NV -ADR compared to its peers within its sector based on price to earnings (PE), price to earnings growth (PEG), price to sales (PS), and price to cash flow (PCF). For certain foreign companies, some quarterly information is not available and therefore not displayed.
The valuation rating for ASML decreased from a LOW RISK to a MOST RISK.
EVA Dimensions UNDERWEIGHT
ASML's PRV it scores is at the 21st percentile of all firms in its industry, which leads to a recommendation to Underweight. ASML is less attractively priced in relation to its true value than well over half of the stocks in its industry.
ASML Equity Summary Score:
Bearish (1.6)

September 24 2013 at 11:38 PM Report abuse rate up rate down Reply
1 reply to petarmladenovic's comment
betty_brock

Can we have the Reader's Digest condensed version?

September 28 2013 at 11:03 AM Report abuse rate up rate down Reply
petarmladenovic

Ben Bernanke know precisely there is no exist without big Consequences so hi is stein put and will let new Chairman to deal with his mass. This is a pure crime. Scam bag is always a scam bag! Yesterday “what we got was an increasingly dovish handoff from Chairman Bernanke to Janet Yellen,” “Bernanke has metaphorically left the building. We are living in a Yellen world. And Yellen is a dove with a capital D.” And she is stupid to grasp that, because she is in love with Ben. What an arrogance and Ignorance. Now this brings us to the bond market. The reason that the bond market was going down, and why interest rates were going up, was that the Fed was going to taper. Now there is no tapering, and bonds have not rallied that much! Why? Because the Fed is losing control of the bond market; the bond market is telling the Fed that it has printed too much money.
This brings us to the stock market. The S&P 500 (INDEXSP:.INX) and Dow Jones Industrial Average(INDEXDJX:.DJI) broke out to new highs. Part of the reason, I believe, that we got no tapering is because the Fed is somewhat scared of what it would do to the equity markets. Part of its belief is that the re-creation of a wealth effect (even if only a small amount of investors have profited) has trickled down into the economy. Now the Fed is scared to take the punch bowl away -- or better yet, it's scared to confiscate the heroin needle away and take the market off of its juice.
The next meeting is in December; at that time, Bernanke will be one month away from stepping down. The next meeting after that is in March, and Janet Yellen, frontrunner for the Fed chair, will be barely two months into her job. I do not see major shifts with an incoming or outgoing Fed chair.
I actually think that investors should ignore the talk of taper. The Fed is going to print until it can’t. Until bond rates spike and the market starts to tank and inflation takes off. Then the market will take the printing press away. However, until then, the Fed is trapped in a box and can’t get out.
Federal Reserve comity and Ben Bernanke “Giant Ponzi Scheme” .When we have bad economic data market is going up on speculation Fed Chairman Ben S. Bernanke will kip printing money. When we have god economic data market is going up speculation Bernanke is steel printing? This entire look like exuberance sign of market is in the crash mod and will burst 1000 down ward point any second. Bernanke ruin billions and billions of ordinary people’s lives with kipping interest zero in favor of Banks and Speculators Bernanke committed the biggest crime to humanity The Biggest Ponzi Scheme Ever. Bernanke is a Scam bag! Communist was using seam principals like Fed > Bernanke (printing money for ever), and day collapsed next is USA to Collapse, because off arrogant sociopath Ban Bernanke. Printing money is poor pyramid scams, artificial unreal! Every pyramid scam crash everybody loses regular investor watch out doesn’t fall in to the trap. A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens. Despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $16 trillion federal debt and the Fed's never ending money printing. Currently, Bernanke and company is buying $1 trillion of Treasury and mortgage bonds a year. That's about $85 billion per month against a budget deficit that is about the same level. These numbers are unsustainable. And the Fed has no credible "exit strategy."
ASML Valuation suggests a higher amount of price risk, and Earnings Quality, Balance Sheet Quality and
Operating Efficiency is weak. When combined, ASML deserves a SELL rating. PE is 29.7028, among the highest in the industry. ASML will underperform the market over the next 12 months and us recommends that investors sell it now. Bernanke over ballooned stock with printing money he can’t exit inflation coming perfect condition for market crash and ASML late investor will lose everything! Regular investor bewares!

September 24 2013 at 11:37 PM Report abuse rate up rate down Reply
en4j

upbeat day when the market is down, anything to make the liberals in washington look good

September 24 2013 at 11:24 PM Report abuse rate up rate down Reply
Silent Hill

We can't continue to borrow money and not get our credit rating downgraded again. we can't pay off this debt. The QE money printing party has to end at some point too.

September 24 2013 at 8:58 PM Report abuse +1 rate up rate down Reply
samuri.sansui

I go now, fuzakeru na Bob

September 24 2013 at 7:37 PM Report abuse +1 rate up rate down Reply
samuri.sansui

How many time you vote for baka Obama Kusottare ?

September 24 2013 at 7:34 PM Report abuse +1 rate up rate down Reply
samuri.sansui

Hello Bob, you want to buy nice Honda or Toyota, I sell cheap to you, we swap you give me food stamps for couple years OK ?

September 24 2013 at 7:20 PM Report abuse +1 rate up rate down Reply
1 reply to samuri.sansui's comment
Hello Bob

You know the rules : A complete intelligible thought BEFORE you touch the keypad.
Gabuy

September 24 2013 at 7:26 PM Report abuse -1 rate up rate down Reply
2 replies to Hello Bob's comment
samuri.sansui

Kuso Kurae

September 24 2013 at 7:29 PM Report abuse +1 rate up rate down
samuri.sansui

You no look up baka !!

September 24 2013 at 7:33 PM Report abuse +1 rate up rate down
Hello Bob

All internet dweebs, nerds and all other social outcasts that usually comment on this thread should now report to your mother's basement. If you want dinner, it's in the micro. Instead of practicing typing tonight, you are required to practice making a complete and intelligible thought before touching the keypad. Tootle Loo

September 24 2013 at 5:13 PM Report abuse -12 rate up rate down Reply
2 replies to Hello Bob's comment
samuri.sansui

You screwy in head you no unastan. You dishonorable to good Americans, do honorable thing and commit Hari-kari

September 24 2013 at 6:43 PM Report abuse rate up rate down Reply
samuri.sansui

You Otaku,yakamashii !!

September 24 2013 at 6:57 PM Report abuse rate up rate down Reply