Wall St. Slide Ends, Concerns About Iraq Remain
US stocks climbed this afternoon, with the S&P 500 paring a weekly decline, as a rally in Intel and corporate deals overshadowed concern that violence in Iraq will disrupt oil supplies
Saturday, June 14, 2014 - 00:00
This reversed losses this morning as concerns escalated about Iraq and after disappointing economic data on retail sales and jobless claims. The S&P 500 rose 0.3% to 1,935.60 at 2:00 PM in New York, headed for its first gain in four days. The Dow Jones Industrial Average climbed 34.33 points, or 0.2%, to 16,768.52. Trading in S&P 500 shares was 6% below the 30-day average at this time of day.
Hours after ethnic Kurdish forces took control of the oil hub of Kirkuk after the Shi'ite-led government's troops abandoned their posts, President Barack Obama was asked if he might order drone strikes or other action to halt the insurgency that has seized much of northern Iraq this week.
Obama told reporters that he refused to rule out US action in Iraq against Sunni Islamist militants who have surged out of the north toward Baghdad, threatening to divide the country and establish their own jihadist state. The stock market's losses quickly accelerated following Obama's comments, with industrials and consumer discretionary sectors leading the decline.
The Fed is watching the labor market as it moves to complete a monthly stimulus program late this year. Policy makers meet next week, with a decision on rates and bond buying due June 18. The stimulus has helped propel the S&P 500 higher by as much as 188% from its bear-market low in March 2009. Meanwhile the Chicago Board Options Exchange Volatility Index slid 4.8% to 11.96. The gauge, known as the VIX, has jumped 11% this week.
This information has been prepared by Nadex, a trading name of North American Derivatives Exchange, Inc., prepared by independent third parties contracted by Nadex or reproduced form third party news agencies. In addition to the disclaimer below, the material on this page does not contain an offer of, or solicitation for, a transaction in any financial instrument. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.