Benchmarks closed in the red on Monday after British Prime Minister Teresa May said the process of the U.K. leaving the European Union will start by March of next year. Moreover, concerns over financial health of Deutsche Bank also weighed on investor sentiment. Additionally, the encouraging domestic manufacturing data also raised speculations of sooner-than-expected rate hike prospect.
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) decreased 0.3%, to close at 18,253.85. The S&P 500 also fell 0.3% to close at 2,161.20. The tech-laden Nasdaq Composite Index closed at 5,300.87 losing 0.2%. The fear-gauge CBOE Volatility Index (VIX) increased 2.1% to settle near at 13.57. A total of around 5.9 billion shares were traded on Monday, lower than the last 20-session average of 7.1 billion shares. Decliners outpaced advancing stocks on the NYSE. For 56% stocks that declined, 41% advanced.
What Dragged The Benchmarks?
British Prime Minister Theresa May said that the process of the U.K.’s exit from the European Union will start by March-end and will most likely be completed by 2019. In her speech, May said that U.K. will become “a fully independent, sovereign country.” May’s Brexit-related speech had a negative impact on the global and domestic markets.
Further, shares of Deutsche Bank AG (DB - Free Report) fell 0.8% over persistent concerns over its financial health after no official agreement between the bank and U.S. Department of Justice were announced (Read More: Deutsche Bank Down Over 7%, Stock Hits New Low).
Additionally, the ISM manufacturing index rose to 51.5 in September from 49.4 in August, signaling an expansion in overall factory growth. Although manufacturing data was encouraging, it intensified sooner than later rate hike worries.
Meanwhile, construction spending was down for the second straight month in August. According to the Commerce Department, U.S. construction spending declined 0.7% in August to its lowest level since December, 2015.
Moreover, after six years of stable growth, slump in major automakers’ sales last month weighed on overall light-vehicle sales. General Motors Company ( (GM - Free Report) and Ford Motor Co. (F - Free Report) reported year-over-year sales decline of 0.6% and 8.1%, respectively in September. General Motors possess a Zacks Rank #3 (Hold) and Ford Motor have a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Stocks That Made Headlines Today
Rockwell Automation Acquires MAVERICK for Domain Expertise
Rockwell Automation, Inc. (ROK - Free Report) has acquired leading systems integrator MAVERICK Technologies in order to enhance its domain knowledge. ( Read More)
Tractor Supply Buys Petsense, Enhances Pets Business
Tractor Supply Company (TSCO - Free Report) acquired 100% stake in the leading specialty retailer of pet supplies and services, Petsense LLC. (Read More)
Wall Street Abuzz with Rumors: Will Disney Acquire Netflix?
Recently, a rumor surfaced that The Walt Disney Company (DIS - Free Report) may make an attempt to buy Netflix, Inc. (NFLX - Free Report) , the online streaming giant. ( Read More)
Toyota to Form Internal Company for Emerging Markets
Toyota Motor Corporation (TM - Free Report) , along with its fully-owned subsidiary, Daihatsu, plans to establish an internal company that will cater to the compact vehicles sector in emerging markets. ( Read More)
Emerson to Buy Permasense, Bets Big on Inorganic Growth
Emerson Electric Co. (EMR - Free Report) entered into an agreement to buy leading non-intrusive corrosion monitoring technologies provider, Permasense Limited. ( Read More)
Dover Makes Strategic Move: Buys Ravaglioli, Sells Tipper Tie
Dover Corporation (DOV - Free Report) announced its acquisition of Ravaglioli as well as the divestment of its Tipper Tie unit in order to expedite its business strategy. ( Read More)
Morgan Stanley Charged for "Unethical" Business Practices
Morgan Stanley (MS - Free Report) has become the second major U.S. financial firm to be accused of dishonest business practices after Wells Fargo & Company (WFC - Free Report) . ( Read More)
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