Fed Gets ‘C’ Marks From Investors

Markets ended lower amid low volume trading today. The Dow shed 49.97 points and closed at 17,081.89. The NASDAQ led the day in real losses, falling 42.03 points to close out the trading day at 4,796.61. The S&P 500 was also down, losing 13.77 points to close out the day at 2,003.69.

Markets were down in overseas trading as well. Across Asia, Japan fell by 200 points and Hong Kong lost 130. In Europe, London’s FTSE shed 29 points, Germany’s DAX was down 86, and France’s CAC lost 45 points. Australia’s ASX lost 33 points.

Big Beer Buyout

In the biggest news of the day, Anheuser Busch InBev (BUD) made an offer on SABMiller (SBMRY) which was accepted, pending regulatory approval.
The offer amounted to over $104 billion in a mixture of cash and stocks. If the regulatory agencies approve, the company will be the largest beer producer in the world, brewing 9 of the top 20 brands, and making over $55 billion in annual sales.

The deal could also be big for Molson Coors (TAP), which has an existing agreement in place with SABMiller to split their US operations. In fact, Molson Coors was up by over 10% on the day, fueled by rumors of this deal and what it could mean for the company.

Ryder (R) Down 10% on Revised Earnings

Truck-rental company Ryder (R) saw share prices plummet today, when it was announced that they were revising their guidance lower of poor quarterly earnings. The company is suffering from slower rentals this year than last, and a general lack of expansion into new markets. Ryder faces stiff competition in the truck rental game, and it hasn’t been performing as well as its competitors. Share prices were down nearly 10% on the news that it would miss its earnings expectations and revise its outlook lower for the future

Fed Gets ‘C’ Marks From Investors

According to a recent CNNMoney/E*Trade Financial poll, the majority of investors gave Janet Yellin and her Federal Reserve ‘C’ marks. Another 25% of investors rated the Fed a ‘D’ or an ‘F’. The grades are a reflection of unhappiness with the Fed on Wall Street, as the ban has stated that rate hikes were coming this year but has failed to act. Many investors think that the Fed missed their window, and rate hikes should have come earlier this summer before there was such uncertainty in markets both foreign and domestic.
Published on Oct 13, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

Posted in ...