Tuesday’s statement by the FOMC that economic growth in the U.S. was slowing and their plan to buy long-term treasuries as a means to help the economy did little to settle investor’s nerves on Wednesday. Even further unsettling news was released in the Bureau of Economic Analysis report which showed that the U.S. trade deficit in June increased to $49.9 billion. In May, the deficit had been $42 billion. To see the full report, click here.
This news brought the Dow Jones Industrial Average down 264.13 points to 10,380.12, thus erasing all gains made in August. The S&P 500 fell 31.56 points to 1,089.50 and the Nasdaq dropped 68.54 points to 2,208.63.
European markets were also down on Wednesday while Asian markets were mixed likely due to new reports showing that China’s economic growth has slowed for the fifth consecutive month. The Shanghai Composite was the only index that rose.
Surprisingly, one of the stocks that actually experienced a gain today was high-end retailer Macy’s Inc (NYSE:M). Their stock price rose more than 5% after their quarterly financial results were released and revealed an increase in net income that beat analyst’s expectations. They also increased their forecasted annual sales and profit numbers. Since Macy’s is not a discount retailer, this success comes as a surprise to many.
