The Dow fell and the Nasdaq rallied on a day with little macro news.First the scoreboard:
Dow: 13,482, -32.7, -0.2 per cent
S&P 500: 1,445, +1.2, +0.0 per cent
NASDAQ: 3,120, +6.5, +0.2 per cent
And now the top stories:
- Stocks dropped earlier this morning after Spain’s Prime Minister Mariano Rajoy told a group of reporters that a bailout request would not be imminent. This contradicted a Reuters report yesterday that a request would come soon. Spain’s bond yields surged on today’s news.
- A lot of stocks moved today as major hedge fund managers presented their investment ideas at The Value Investing Congress. Famed short seller David Einhorn of Greenlight Capital brought some relief to Herbalife investors after he said he wouldn’t speaking about the stock today. In May, Einhorn chimed in on an Herbalife conference call, and his questions freaked out traders and investors who ran for the exits.
- Shares of K-Cup maker Green Mountain Coffee Roasters got hit after Einhorn reiterated his short position on the stock. However, the sell-off was short-lived and the stock ended positive for the day.
- The call of the day was definitely Chipotle, which Einhorn said he was shorting. He warned that Taco Bell’s new menu offering posed a major competitive threat to Chipotle, who’s valuation is also much higher.
- A new report from CoreLogic showed that average U.S. home prices rose 4.6 per cent year-over-year in August. “The housing market’s gains are increasingly geographically diverse with only six states continuing to show declining prices,” said CoreLogic’s Mark Fleming. FORGET ALL THE HOUSING COMEBACK TALK: Here’s Why The Market Is Still A Disaster >
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