Stock Market News For September 15, 2016

Both the Dow and the S&P 500 closed in the red on Wednesday, thanks to a slump in crude-oil prices. Rise in U.S. stockpiles of refined products and Libya’s plan to resume oil shipments weighed on oil prices. The Nasdaq, however, defied the declining trend and closed in the positive territory. Shares of Apple touching its highest level this year coupled with gains in biotech stocks boosted the tech-laden index. Wednesday’s economic calendar was relatively thin, with investors’ reaction to the August import-price index remaining mostly muted.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) declined 0.2% to close at 18,034.77. The S&P 500 dropped 0.1% to close at 2,125.77. The tech-laden Nasdaq Composite Index closed at 5,173.77, increasing 0.4%. The fear-gauge CBOE Volatility Index (VIX) fell 0.7% to settle at 17.74. A total of around 3.6 billion shares were traded on Wednesday on the NYSE. Decliners outpaced advancing stocks on the NYSE. For 50% stocks that declined, 47% advanced.

Oil Darkens the Mood

Decline in oil prices had a negative impact on the broader markets. Increase in stockpiles of gasoline and distillates, including heating oil and diesel fuel adversely affected oil prices. According to the Energy Information Administration (EIA), total supplies of crude oil and refined products rose by 6 million barrels to 1.4 million barrels in the week ended Sep 9.

The EIA also reported that U.S. crude inventories declined by 600,000 barrels in the same week, but, it were much smaller than the 14.5 million barrel drop from the week before. Analysts’ concluded that the sector is plagued by excess inventory. While inventories in the U.S. and elsewhere continue to hover near record levels, production from the Organization of the Petroleum Exporting Countries remains high (read more: 5 Oil Stocks to Buy Even as OPEC, IEA Foresee Crude Glut).

To top it, Libyan officials confirmed that they plan to load the first crude-oil cargo in almost two years from Ras Lanuf. Increase in Libyan exports will be a major concern for the already oversupplied oil market. Production in Libya was limited for quite some time due to political unrest and violence.

WTI and Brent crude fell 3% and 2.7% to $43.58 per barrel and $45.85 a barrel, respectively. The Energy Select Sector SPDR (XLE (NYSE:XLE)) decreased 1.9% amid sharp drop in oil prices. Dow components such as Chevron Corporation (NYSE:CVX) (CVX) and Exxon Mobil Corporation (NYSE:XOM) (XOM) dropped 1% and 0.7%, respectively. Both these companies possess a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple Shines, Nasdaq Bucks Declining Trend

Shares of Apple Inc (NASDAQ:AAPL). (AAPL) climbed 3.5%, with its market capitalization topping $600 billion for the first time since April as investors believe that its new iPhone would shore up sales. Gains in Apple helped the Nasdaq settle in the green (read more: Will iPhone 7 Push Apple Back to Bull Market Territory?).

Separately, gains in biotech stocks also boosted the tech-heavy index. Shares of major biotech stocks such as Amgen (NASDAQ:AMGN), Inc. (AMGN) and Biogen (NASDAQ:BIIB) Inc (BIIB) advanced 0.5% and 0.8%, respectively. The broader iShares NASDAQ Biotechnology Index (IBB) gained 1.2% (read more: 4 Biotech Stocks to Buy as Election Fever Rises).

Stocks that Made Headlines

Cracker Barrel’s Beats on Q4 Earnings & Revenues

Cracker Barrel Old Country Store, Inc. (CBRL) posted fourth quarter and fiscal year 2016 results, wherein both bottom line and top line beat the Zacks Consensus Estimate. (Read More)

Ford’s Pre-tax Profit to Decline in 2017, Rise in 2018

Ford Motor Co. (F) revealed that its adjusted pre-tax profits are expected to decline in 2017 due to higher investments and costs of emerging opportunities. (Read More)

Monsanto (NYSE:MON) & Bayer (DE:BAYGN) Join Hands with $66 Billion All-Cash Deal

Monsanto Company (MON) accepted Bayer AG’s (BAYRY) buyout offer worth $66 billion, inclusive of debt. (Read More)

Allergan (NYSE:AGN_pa) to Buy Vitae Pharma to Boost Dermatology Suite

Allergan plc (AGN) announced that it has entered into a definitive agreement to acquire privately held Vitae Pharmaceuticals. (Read More)

Salesforce on an Acquisition Spree, Buys Gravitytank

Keeping with its strategy of growing through acquisitions, salesforce.com Inc. (CRM) recently bought Chicago-based consulting agency, Gravitytank. (Read More)

Equifax/BizEquity Team up for New Business Valuation Tool

Equifax Inc. (EFX) has recently entered a strategic alliance with BizEquity, a global leader of business valuation knowledge and big data. (Read More)

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CHEVRON CORP (CVX): Free Stock Analysis Report

EXXON MOBIL CRP (XOM): Free Stock Analysis Report

APPLE INC (AAPL): Free Stock Analysis Report

AMGEN INC (AMGN): Free Stock Analysis Report

BIOGEN INC (BIIB): Free Stock Analysis Report

CRACKER BARREL (CBRL): Free Stock Analysis Report

FORD MOTOR CO (F): Free Stock Analysis Report

MONSANTO CO-NEW (MON): Free Stock Analysis Report

BAYER A G -ADR (BAYRY): Free Stock Analysis Report

ALLERGAN PLC (AGN): Free Stock Analysis Report

SALESFORCE.COM (CRM): Free Stock Analysis Report

EQUIFAX INC (EFX): Free Stock Analysis Report

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