The week opened on a bright note; however, when it closed on Friday, risk aversion took hold on, as the stock market experienced a selloff during the final 30 minutes of trading.
The US stocks fell amidst several big companies losing the sheen. The major loser was Groupon Inc. which slumped 22 percent, the most in a year as it failed to meet expected results.
There was a slight decline in the S&P 500 (SPX) which dipped 0.2 percent to 1,836.25 at 4 p.m. in New York after earlier gaining as much as 0.4 percent. A similar trend was seen in the equities benchmark which retreated 0.1 percent over the past four sessions. Even the Dow Jones Industrial Average decreased 29.93 points, or 0.2 percent, to 16,103.30.
On the troubling trading day more than 6.5 billion shares changed hands on US exchanges which is 2.4 percent above the three-month average and according to some observers it looked like the traders were cautious about the risks involved and were seen selling the shares. They believe that the fear might be that they begin to taper too quickly.
A similar trend was seen with the Nasdaq 100 (QQQ) which declined 0.25 percent to finish at 3,662. On the other hand, the Russell 2000 (IWM) advanced 0.22 percent to end the day at 1,164. Though the week ended on slide, stock experts expect that the next week will may come with positive news as Asian trade may set the agenda.
Major Gainers and Losers
The major gainer on the day’s trade was Juniper Networks Inc. (JNPR) which gained 2 percent to $27.95. The growth was seen as this technology company following the request under pressure from activist hedge funds Elliott Management Corp. and Jana Partners LLC, announced plans to return at least $3 billion to shareholders. It also decided to reduce $160 million in expenses.
A similar result was seen in Intuit as it advanced 4.6 percent to $77.24. The major reason behind the growth of Intuit was that this software maker reported second-quarter profit and sales that exceeded analyst estimates. According to the company the sales of its TurboTax Online program grew 11 percent.
On the other hand, in Europe, stocks advanced as French equities took the lead after a week of solid earnings reports. Whereas the French CAC 40 Index was up 1.98 percent, the Euro STOXX 50 Index finished Friday’s session with a 0.32 percent advance to 3,131.
To contact the reporter of this story: Jonathan Millet at email@example.com