- China Daily/Reuters
Stocks slogged through the red on Thursday amid worrying headlines about Deutsche Bank.
All major indices finished down for the day, while the troubled German lender’s shares fell by as much as 7% in the afternoon.
First up, the scoreboard:
Dow:18,181.25, -157.99, (-0.86%)S&P 500: 2,155.23, -16.24, (-0.75%) Nasdaq:5,276.24, -42.24, (-0.79%)WTI Crude: $47.70, +$0.65, (+1.4%) 1o-year yield: 1.560%, -0.007
Deutsche Bank got slammed again after a Bloomberg report noted that a number of hedge fund clients have started shifting business to other banks. The firm was down by about 7.2% at $11.42 a share in the early afternoon ET. Wells Fargo CEO John Stumpf got raked over the coals by Congress for over 4 hours. Stumpf answered questions regarding the opening of 2 million bogus accounts by Wells Fargo employees without customers’ knowledge from 2011 to 2015. The US economy was stronger last quarter than we first thought. According to the Commerce Department’s third estimate of GDP, the US economy grew by 1.4% in the second quarter, above economists’ expectations of 1.3%. “The current housing recovery could stall” if new construction doesn’t pick up, according to the National Association of Realtors. The NAR said in its monthly reporton Thursday that pending sales of single-family homes, condos and co-ops fell 2.4% in August. Chesapeake Energy says it’s been subpoenaed over its accounting practices. In a regulatory filingon Thursday, the company said the Department of Justice served it a subpoena, asking for information about accounting practices for the purchase of oil and gas properties, how it classified them, and “related matters.” A startup specifically designed to sell Obamacare is quitting Obamacare. Harken Health Insurance, a startup and part of UnitedHealthcare that offered low-cost health plans through the Affordable Care Act (ACA) exchanges, is out. Qualcomm is reportedly in talks to buy NXP Semiconductors, and both stocks are surging. A deal could happen within the next two to three months, according to the Wall Street Journal report. Initial jobless claims rose less than expected. Notably, this is the 82nd straight week that claims haven’t climbed above 300,000.