Toward the end of trading Wednesday, the Dow traded down 0.76% to 26,904.66 while the NASDAQ fell 1.2% to 8,087.52. The S&P also fell, dropping 0.89% to 2,978.77.
Leading and Lagging Sectors
Utilities shares climbed 0.2% on Wednesday. Meanwhile, top gainers in the sector included PG&E Corporation PCG, up 5%, and Just Energy Group Inc. JE, up 4%.
In trading on Wednesday, industrials shares fell 1.1%.
Top Headline
In a move that was widely expected, the Federal Reserve issued its second 0.25% interest rate of 2019 on Wednesday. Despite the cut, the Fed reassured investors that the U.S. economy is strong and the labor market remains solid.
The rate cut comes after the New York Fed injected $53 billion in capital into the U.S. financial system Tuesday by buying U.S. Treasuries and other securities. The so-called “overnight repo operation” came in response to interest rates on overnight repurchase agreements spiking as high as 5% on Monday, more than double the Federal Reserve’s target range of between 2% and 2.25%.
Equities Trading UP
SPI Energy Co., Ltd. SPI shares shot up 46% to $3.16 after the company announced the launch of its newly established hemp and CBD business. The company also announced it has formed a partnership with the Navajo Nation.
Shares of Lexicon Pharmaceuticals, Inc. LXRX got a boost, shooting up 25% to $3.6720 after two company insiders bought shares totaling $1.054 million.
IGM Biosciences, Inc. IGMS shares were also up, gaining 35% to $21.55. IGM Biosciences made its public debut Wednesday morning, opening at $18.31 after being priced at $16 per share.
Equities Trading DOWN
Zynerba Pharmaceuticals, Inc. ZYNE shares tumbled 24% to $8.60 after Zygel safety data showed 96% of patients experienced a treatment emergent adverse event.
Shares of ZK International Group Co., Ltd. ZKIN were down 18% to $1.53 after the company reported H'1 sales of $31.54 million, an increase from the same period last year.
FedEx Corporation FDX was down, falling 14% to $149.18 after the company reported worse-than-expected Q2 EPS and sales results. The company also cut FY20 sales guidance.
Commodities
In commodity news, oil traded down 2.1% to $58.08, while gold traded down 0.3% to $1,509.20.
Silver traded down 1.5% Wednesday to $17.86, while copper fell 0.7% to $2.608.
Euro zone
European shares closed mostly higher today. The eurozone’s STOXX 600 rose 0.02%, the Spanish Ibex Index rose 0.31%, while Italy’s FTSE MIB Index climbed 0.67%. Meanwhile, the German DAX gained 0.14%, and the French CAC 40 rose 0.09% while UK shares fell 0.09%.
Economics
U.S. housing starts rose 12% to an annual rate of 1.36 million in August, versus a revised 1.22 million in July. Permits increased 8% to an annual pace of 1.42 million.
U.S. crude supplies climbed 1.1 million barrels for the week ended September 13, the Energy Information Administration reported. However, analysts expected a decline of 2 million barrels. Gasoline inventories rose 800,000 barrels last week, while distillate stockpiles gained 400,000 barrels.
In a move that was widely expected, the Federal Reserve issued its second 0.25% interest rate of 2019 on Wednesday.
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