Economy
CLOSING BELL: September 5th: DJIA: 13,047.48 | UP 11.54 | +0.09%
OIL: $95.36, UP 0.06, +0.06%
GOLD: $1,694.00, DOWN 2.00, -0.12%
GASOLINE (US Avg): $3.824, UNCHANGED
Wall Street treads water, stays on ECB watch
Ryan Vlastelica, Reuters – Stocks closed out a second straight session of thin trading on Wednesday, with investors reluctant to make big bets ahead of a crucial meeting of the European Central Bank, which could announce new policies to help contain the euro zone’s debt crisis.
Media reports that European policymakers would unveil a bond-buying plan to bring down crippling borrowing costs in euro zone economies boosted sentiment, but it wasn’t enough to drive gains in stocks.
Shares opened lower, hurt by FedEx Corp (FDX.N), which late Tuesday cut its quarterly profit outlook on weakness in the global economy. FedEx is considered an economic bellwether because of its role as the No. 2 world shipping company. The stock fell 2 percent to $85.80, United Parcel Service (UPS.N) fell 2.4 percent to $71.94 and the Dow Jones Transportation index .DJT lost 1.1 percent.
“While FedEx is only one company, it’s one whose warning is indicative of the global economic slowdown we’re dealing with,” said Leo Grohowski, chief information officer at BNY Mellon Wealth Management in New York.
Equities seesawed between positive and negative territory throughout the session. About 5.49 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, well below last year’s daily average of 7.84 billion in a sign of investor caution.
Central Bank sources told Reuters the ECB was ready to waive seniority status on government bonds it buys under a new program which it is set to agree on at Thursday’s Governing Council meeting.
Bloomberg earlier reported that the ECB would, with broad support from its council members, unveil an unlimited, sterilized program of bond purchases. The ECB has been expected to be cautious about disclosing the size of its bond-buying, given opposition from Germany’s central bank.
Read the rest of this article at Reuters here.
The Common Good publishes a financial market wrap-up every weekday after markets close, available here.
