Standard & Poor’s 500 Index experienced first decline since August and Stocks of U.S. fell for the week.
Morgan Stanley (NYSE:MS) and Goldman Sachs Group Inc (NYSE:GS) shares dropped at least 3.9 percent for the week. J.C. Penney Company, Inc. (NYSE:JCP) dropped 30 percent. Lennar Corp. and KB Home each increase 2 percent. Nike Inc gained 6.2 percent in earnings because of increase in sales in North American.
The S&P 500 dropped 1.1 percent to 1,691.75 in first weekly since Aug. 30. The benchmark experienced a quarterly gain of 5.3 percent. The Dow Jones Industrial Average dropped 192.85 points. All of this is because everyone place eyes on budget that slow down the economy. Sam Wardwell, an investment strategist said that in my opinion the bond or the stock market has not fully priced in government shutdown. The U.S. government shutdown would reduce year end economic growth by 1.4 percentage points. Ramon Verastegui, head of engineering and strategy at Societe Generale SA in New York, wrote in a Sept. 25 note that the concerns about the budget deadlock and central bank stimulus come as the end for third quarter investments. Investors expect a trend of $23.5 billion in selling of equities and buying of bonds as pension fund for balancing of their portfolio.
Goldman Sachs Group Inc (NYSE:GS) dropped 5.8 percent to $159.85 that is the biggest drop for Dow. Morgan Stanley fell 3.9 percent to $27.08 and Citigroup Inc. dropped 4.5 percent to $48.89.According to Richard Staite, an analyst at Atlantic Equities LLP, The biggest U.S. banks’ fixed-income trading revenue will decrease 20 percent in the third quarter. J.C. Penney experienced 30 percent decline to $9.05.
BlackBerry Ltd (NASDAQ:BBRY) dropped 8 percent to $8.03 as company make a buyout agreement that would take company private in a $4.7 billion deal. Wal-Mart Stores Inc. fell 1.9 percent to $74.36. The world’s biggest retailer lost 1.5 percent on Sept. 25 when company tells its suppliers that it is cutting placed this quarter and to raise its inventory
The world’s largest sporting-goods company Nike posted fiscal first-quarter profit that surged 6.2 percent to a record $73.64 after demand for running and basketball shoes increase North American sales. Lennar raised 2 percent to $35.86, and KB Home increase 2 percent to $17.98.
Applied Materials Inc. raises 10 percent, to $17.60 as the largest chipmaking-equipment supplier.