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MarketView
Events defining the day's trading activity on Wall Street
Lauren Rudd
Wednesday, June 11, 2014
Summary
The S&P 500's drop of 0.4 percent was its biggest
daily percentage loss since May 20. The benchmark index fell for the
second day in a row, after four straight record closing highs. The
selloff was broad. Every S&P 500 sector index except energy .SPNY
declined for the day. Low volume and low volatility have marked recent
sessions, leaving indexes to trade in a narrow range. The World Bank's lower growth forecast provided
investors with a reason to unload some stocks. Late Tuesday, the World
Bank cut its global economic growth forecast for 2014 to 2.8 percent
from 3.2 percent because of a harsh U.S. winter and the impact of the
Ukraine crisis. The largest drag on the S&P 500 was Bank of America,
down 2.1 percent at $15.59. The bank has reached an impasse in
negotiating a multibillion-dollar settlement with the Department of
Justice related to the bank's mortgage investments, according to The New
York Times. Investors turned cautious after the surprising
primary election defeat of Eric Cantor, the No. 2 Republican in the
House of Representatives, by an upstart candidate from the Tea Party
movement. Micron Technology rose 5 percent to $30.99 a day
after Credit Suisse raised its price target on the memory chipmaker's
stock to $50 from $30. The CBOE Volatility Index .VIX rose 5.6 percent to
11.60 but remained well below its historical average of 20. In a sign of
the market's low volatility, the 14-day Average True Range on the S&P
500 fell to 9.71, the lowest since February 2013. Orexigen Therapeutics was down 14.7 percent to $5.81
after the Food and Drug Administration delayed a decision on the
marketing application for its obesity drug by three months. Volume was once again below average with
approximately 5.2 billion shares changing hands on the major equity
exchanges, a number that was below the 5.76 billion share average for
the last month, according to data from BATS Global Markets.
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MarketView for June 11
MarketView for Wednesday, June 11