Investors did not get what they wanted.
4 minutes read
The views expressed Pioneer Shareholders are their own.
The Fed did not help investors today.
The Dow rose this morning in anticipation of the Fed's second meeting, and dropped by 600 points the next hour. The index ended the day down 1.49 percent, hitting a new low this year. The S & P 500 and Nasdaq Composite indexes fell 1.54 per cent and 2.17 per cent, respectively.
The Entrepreneur ™ index dropped 2.28%, with only seven of 60 companies posting gains per day.
Related: The most successful companies led by entrepreneurs
As expected, the Fed raised federal funds rates by another quarter, but failed to worry enough about slowing global growth and market volatility. The market expected the central bank to abandon its plans to raise interest rates three times next year. Instead, the Fed cut its expected interest rate to two. Stock prices rose and safe haven securities prices rose.
Politics kills FedEx.
Frederick Smith, chief executive of FedEx, said the giant delivery company outperformed revenue and profit with second-quarter results yesterday, but has drastically reduced its forecast for "bad policy choices." The stock fell 12.16 percent today, the biggest decline in the Entrepreneur Index.
Smith said that everything from the chaotic Brexit to China's economic policies to unilateral US tariffs was hurting global growth and FedEx's work. While the US economy remained strong, the expected decline in FedEx's international business led to a 10 per cent reduction in the company's earnings forecast for 2019. The stock has fallen more than 35 per cent since mid-September and hit a 52-week low today.
Facebook has its own political problems. a The New York Times The investigation reported that the company has shared user data – including personal messages – with dozens of partner companies without sufficient consent. Separately, the Washington DC prosecutor is said to sue the company for access to user data he had previously submitted to Cambridge Analytica. The stock fell 7.25 percent today and now retreated 39 percent from its peak in late July.
The rest of the technology sector turned negative after the Fed meeting. Chipmaker's (-4.95 per cent) and Nvidia (-5.74 per cent) experienced the biggest declines.
Tyson Foods, one of the few stocks that rose today, rose 0.55 percent. The food product may be eligible as a less sensitive defensive buffer for the economic cycle. It performed relatively well during the volatile month of October, but it was down last month and fell 33% year-on-year.
The two commercial centers REITs Macerich Company and Kimco Realty Corp. With compensation as investors fear the store and the senior tenants who set up REIT properties. Mashreich (-4.7 per cent) has fallen almost 30 per cent since early August and has fallen 22.9 per cent by 11 per cent in the last two weeks.
Clothing makers also fell sharply. Shares fell to. Brands, a Victorian clothing maker by 6.14 per cent, and Under Armor, which fell 25 per cent in the past two weeks, fell 3.77 per cent. Shares of Ralph Lauren Corp fell 1.4 percent.
Retail and specialty retailers Bath & Beyond (0.85 per cent) registered the biggest gain in the Interbraner ™ index today. Dollar Tre Trech (0.43 percent) and pipeline manager Kinder Morgan (0.26 percent) made small gains.
Entrepreneur ™ brings together a list of over 60 publicly traded companies managed and managed by entrepreneurs. Entrepreneurship is a valuable asset for any business, and this indicator recognizes its importance, regardless of the company's growth. These inspirational works can be tracked in real-time on Entrepreneur.com.