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US Indexes Continue Selloff Wednesday for Another Lower Close

- By Julie Young

The Dow Jones Industrial Average closed at 33,896.04 on Wednesday with a loss of 164.62 points or -0.48%. The S&P 500 closed at 4,115.68 for a loss of 12.15 points or -0.29%. The Nasdaq Composite closed at 13,299.74 for a loss of 3.90 points or -0.03%. The VIX Volatility Index was higher at 22.18 for a gain of 0.84 points or 3.94%.

Wednesday's Market Movers


U.S. stocks sold off for a third day, leading to another day of losses for the major indexes. The energy sector led losses. In the energy sector, the Colonial Pipeline chief executive officer discussed publicly the company's $4.4 million ransom payment, which was required to obtain decrypting tools for business restoration.

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Cryptocurrencies dived lower alongside stocks on Wednesday. The Grayscale Digital Fund (GDLC) was down -12.12% and the Bitwise 10 Crypto Index Fund (BITW) was down -2.26%. Beyond new cyberhacking concerns, losses in cryptos were spurred by new crackdowns in China as well as reports that China will not allow financial institutions to be involved with crypto movement. On a positive note, Wells Fargo (WFC) said it would support qualified investors' investments in crypto.

The Federal Reserve's Federal Open Market Committee released its latest meeting minutes. The minutes showed that the Fed could begin discussing and implementing asset tapering in the near-term. The Fed has reported that asset tapering would be its first policy move as the economy improves. Investors still remained concerned about inflation measures.

Earnings headlines for the day included:

  • Lowe's (NYSE:LOW): Revenue of $24.42 billion increased 24.1% year over year and beat estimates by $670 million. Q1 GAAP EPS of $3.21 beat estimates by $0.68. The stock was down -1.05%.

  • Target (NYSE:TGT): Revenue of $24.2 billion increased 23.3% year over year and beat estimates by $2.43 billion. Q1 GAAP EPS of $4.17 beat estimates by $2.17 and non-GAAP EPS of $3.69 beat estimates by $1.47. The stock gained 6.14%.

  • Cisco (NASDAQ:CSCO): Revenue of $12.8 billion increased 6.8% year over year and beat estimates by $230 million. FQ3 GAAP EPS of $0.68 was in-line with estimates and non-GAAP EPS of $0.83 beat estimates by $0.01. The stock was down -0.87%.



In other news:

  • Semiconductors and the S&P 500 tech sector were higher.

  • The 7-day average for new Coronavirus cases continued to remain below the 14-day average.

  • The European Union is making plans to allow for vaccinated tourist travel.

  • The MBA Mortgage Applications Index increased 1.2% following an increase of 2.1%. The MBA's average 30-year mortgage rate increased to 3.15% from 3.11%.

  • Crude oil inventory was down -0.6 million barrels according to the EIA's Weekly Petroleum Status Report.

  • The Treasury held an auction for 20-year bonds at a rate of 2.286%.

  • Peloton (PTON) gained 1.43% with the announcement of a tread lock passcode feature.

  • Alphabet (GOOG) gained 0.23% following I/O Conference developments.

  • The 10-year Treasury's yield reached 1.692%.



Small-Cap Stocks

In small-caps, the Russell 2000 closed at 2,193.64 for a loss of 17.24 points or -0.78%. The S&P 600 closed at 1,333.53 for a loss of 8.23 points or -0.61%. The Dow Jones U.S. Small-Cap Growth Index closed at 14,199.72 for a loss of 107.34 points or -0.75%. The Dow Jones U.S. Small-Cap Value Index closed at 11,297.35 for a loss of 92.43 points or -0.81%.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 2,672.79 for a loss of 17.67 points or -0.66%; the S&P 100 at 1,864.75 for a loss of 3.93 points or -0.21%; the Nasdaq 100 at 13,237.91 for a gain of 20.23 points or 0.15%; the Russell 3000 at 2,452.89 for a loss of 8.33 points or -0.34%; the Russell 1000 at 2,311.00 for a loss of 7.11 points or -0.31%; the Wilshire 5000 at 42,893.48 for a loss of 144.75 points or -0.34%; and the Dow Jones US Select Dividend Index at 860.59 for a loss of 7.07 points or -0.81%.

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This article first appeared on GuruFocus.