Wall Street fell deeper today, as one Federal Reserve president indicated a September interest-rate hike is likely unless there’s a significant deterioration in the economy.
The S&P 500 (INDEXSP:.INX) skidded 0.2 percent to 2,094.15 at 3:39 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.2 percent to 17,557.83, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) slipped 0.2 percent to 5,106.47.
Federal Reserve Bank of Atlanta President Dennis Lockhart said the economy is ripe for a rise in short-term interest rates. “I think there is a high bar right now to not acting, speaking for myself,” Mr. Lockhart said in an interview with The Wall Street Journal.
Investors have been assessing economic data, from wage growth to unemployment figures, for clues on when the Federal Reserve could begin raising rates for the first time in nearly a decade. Many are focused on the government’s employment report for July due Friday.
MOVERS:
CVS (NYSE:CVS) slipped 2.6 percent to $109.94 after the drugstore chain gave a soft earnings outlook for its current quarter. CVS beat estimates by $0.02 per share with adjusted quarter profit of $1.22 per share, with revenue essentially in line.
Baxalta (NYSE:BXLT) surged 14.9 percent after U.K. drugmaker Shire Plc (NASDAQ:SHPG) offered to buy the biopharmaceutical company for about $30 billion.
Regeneron Pharmaceuticals (NASDAQ:REGN) rose 5.3 percent to $583.94 after the biotechnology company reported a 50 percent rise in quarterly revenue, boosted by increasing demand for its blockbuster eye drug, Eylea.
American International Group (NYSE:AIG) fell 2.5 percent to 62.54 even as the largest commercial insurer in the United States and Canada, more than doubled its quarterly dividend and lifted its share buyback target while reporting operating earnings that topped market expectations.
Aetna (NYSE:AET) rose 0.6 percent to $114.50 after the health care benefits company reported better-than-expected second-quarter earnings as it benefits from growth in its government business. Aetna also raised its forecast for the full year, on better than expected performance in its Medicare and Medicaid businesses.
Allstate (NYSE:ALL) sank 10 percent to $62.45 after saying its second-quarter operating earnings fell 41 percent on lower auto insurance margins and seasonally high catastrophe losses.
Archer Daniels Midland (NYSE:ADM) rose 1.5 percent to $48.42 even as the processor of oilseeds reported second-quarter profit and revenue below analyst forecast.
Coach (NYSE:COH) jumped 3.2 percent to $31.40 after the luxury accessories maker reported better-than-expected profit and sales for its fiscal fourth quarter.
Office Depot (NASDAQ:ODP) fell 1.3 percent to $7.80, reversing an earlier gain, after releasing second-quarter earnings that met analyst estimates, but sales slightly missed expectations.
ADRs of eLong (NASDAQ:LONG), a Chinese online travel company, jumped 20 percent to $17.08 after receiving a takeover offer from its shareholder Tencent Holdings (OTCMKTS:TCEHY), the latest move in a sector that has seen an abundance of deal activity.
Sprint (NYSE:S) gained 4.3 percent to $3.49 after the telecoms company reported a narrower-than-expected loss for its fiscal fourth quarter.
COMMODITIES:
Gold for December delivery, the most actively traded contract on Comex, gained less than 0.1 percent to 1,090.70 an ounce, after closing at $1,089.40 an ounce yesterday.
September West Texas Intermediate crude on the New York Mercantile Exchange added 1.3 percent to end at $45.74 a barrel.