Closing Bell: Stocks Head Lower Despite Surge in Tech Shares

new york stock exchange traders wall street investing stocks earnings
Richard Drew/AP
Stocks ended Monday's trading down for the fourth straight day, weighed down by continued concern over the Federal Reserve's plan to taper its stimulus program.

The Dow Jones industrial average (^DJI) lost 71 points, or 0.5 percent to 15,010, the Standard & Poor's 500 index (^GPSC) gave up 10 points, or 0.6 percent, to 1,646, and the Nasdaq composite index (^IXIC) slipped 14 points to 3,589.

With little expected this week in the way of economic indicators, market participants are focused on the minutes from the July Fed meeting, due out Wednesday, for possible insights into policymakers' thinking.

Growing concern about a pullback in the program contributed to the Dow's largest weekly drop in more than a year last week. Trading volume has been light in recent sessions because of uncertainty about the Fed, as investors kept to the sidelines.

In company news, JPMorgan Chase (JPM) fell 2.7 percent to $51.88 after reports that the bank was the target of federal bribery investigation into whether it hired the children of to Chinese officials to help win business. Other bank stocks lost ground, too. Bank of America (BAC) fell 1.9 percent to $14.15 while Citigroup (C) lost 2 percent to $49.33.

More Stocks in the News:
  • Shares of U.S. Steel (X) fell nearly 4.4 percent to $17.99 after following Friday's announcement that CEO John Surman will be stepping down. The steel company said President and Chief Operating Officer Mario Longhi was elected to replace Surman, who will stay on as executive chairman through the end of the year.
  • Saks (SKS) ended trading off 0.3 percent to $15.97 after the retailer reported a second-quarter loss and same-store sales that were below expectations. The New York-based company is in the process of being acquired by Hudson's Bay Co. for $16 a share.
  • Intel (INTC) rose the most of any Dow stock, gaining 1.7 percent to $22.28, after Piper Jaffray upgraded the Dow component and boosted its price target on the stock. Other major tech stocks also rose, with Apple (AAPL) gaining 1.1 percent to $507.90 and Google (GOOG) adding 1 percent to $865.65.
  • Zillow (Z) shares fell 7.1 percent to $84.74 after the company announced a stock offering and said it agreed to buy New York real estate website StreetEasy for $50 million.
  • Supernus Pharmaceuticals (SUPN) jumped nearly 4 percent to $6.90 after the company said it will soon introduce an epilepsy drug after having received final approval from the Food and Drug Administration.
  • Activist investor Carl Icahn increased his stake in Chesapeake Energy (CHK) to 9.98 percent from 8.98, according to a regulatory filing. The stock rose in morning trading but ended Monday's session 23 cents lower to close at $24.77.
  • Dollar General (DG) rose 3.1 percent to $54.09, after analysts at JPMorgan Chase upgraded the stock to "overweight" from "neutral" and raised their price target to $64 from $51, citing signs that sales and profit margins were improving.
What to Watch Tuesday:
  • The Federal Reserve Bank of Chicago releases its latest survey of U.S. economic activity at 8:30 a.m. Eastern time.
These major companies are reporting corporate quarterly earnings
  • Barnes & Noble (BKS)
  • Best Buy Co. (BBY)
  • Home Depot (HD)
  • J.C. Penney Co. (JCP)
-Compiled from staff and wire reports.

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I think the markets are in a state of frenzy, in July the mood was ebullient in August somber and not that much has changed. The Fed is still purchasing lots of bonds and the interest rates are rising because economic activity especially construction is gaining. The housing market is a bellwether for economic growth in the U.S.

August 19 2013 at 10:56 PM Report abuse rate up rate down Reply

Wait until it drops and doesn't come back.

August 19 2013 at 8:55 PM Report abuse rate up rate down Reply

As I said two weeks ago, dump and short your crude/gas futures, and look what happened today, DOJ looking into JP's energy trades. GAME OVER.....

August 19 2013 at 7:13 PM Report abuse -1 rate up rate down Reply

The stock market will continue to drop until stock(s) reach their real value, based on business profits from companies that provide goods and services. The big block investor groups now move their money around and around where it stops, nobody knows! The last one holding the paper loses! Investors that buy stock and some un-realistic over value of earnings, are not living in the real world. Inflation is driven buy our Fed Reserve, with the blessing of congress and the big banks. Inflated values are artificial and can be wiped out with turning your pencil around and entering the real number value.

August 19 2013 at 6:28 PM Report abuse +2 rate up rate down Reply

Couldn't be the worsening unemployment numbers, suffocating regulations, obamacare and the 4th year in a row of record trillion dollar defecits?

August 19 2013 at 6:13 PM Report abuse -2 rate up rate down Reply
1 reply to telorvehcciao's comment

Of course it is.

August 19 2013 at 8:54 PM Report abuse +1 rate up rate down Reply

We have finally run out of money to bail these nitwits out week by week.

August 19 2013 at 6:10 PM Report abuse +2 rate up rate down Reply

I see that the start of the week is reacting to the return of the President to Washington. Gee more great news for the market. Well time to get into "campaign mode" again & get out on the road to tell us how good things are, & how the republicans have blocked his "policies" that haven't worked so far in 4+ years.
He should adapt Willy Nelson's song " On the road again", to hell with what's happening in the Middle East, the upcoming debt ceiling, or any stalled legislation, just go out & tell people there's more hand outs coming from the administration, & how the "rich" (meaning anyone earning over $40,000, but he'll stress the millionaires & billionaires) will be paying for all the Santa giveaways.
Make those 47% takers Romney talked about, feel good.

August 19 2013 at 5:33 PM Report abuse rate up rate down Reply

$$ starting to go to into the bond markets now too

August 19 2013 at 5:19 PM Report abuse rate up rate down Reply

How can it fall.???? There is no real money there..........ALL A FALSE MARKET BY THE GOVERMENT.....

August 19 2013 at 4:50 PM Report abuse +1 rate up rate down Reply