Stocks are decidedly lower in the U.S. as investors decided that the Federal Reserve’s decision to leave rates unchanged signaled a lack of confidence in the country’s economy.
The S&P 500 slid 24 points to 1,967, the Dow Jones Industrial Average plunged 238 points to 16,436 and the Nasdaq declined 54 points to 4,839. The only party happening on Friday is at the Treasury desk where 10-year Treasury yields are down to 2.16 percent. There is little economic data of importance today. Also, the safe haven trades are back on as gold hit a three-week high and even silver climbed by 5 percent this week.
The lack of movement by the Fed sent European markets lower as well. The U.K. suffered a flash crash this morning as the FTSE fell almost 2 percent and then quickly rebounded. HSBC plunged 4.8 percent, but then came back to a loss of only 2.3 percent and BP slid 4.7 percent to recover to a loss of 1.8 percent.
The Asian markets ended the day with mixed results as China’s Shanghai Composite ended up 0.4 percent, while Japan’s Nikkei dropped 2 percent.
The Aeropostale saga of the trial for former chief merchandising officer Christopher Finazzo continues. Finazzo was sentenced in August to eight years in prison and was ordered to forfeit more than $25 million to the government and pay $13,690,822 in restitution payments to Aeropostale. That payment amount came under scrutiny with a judge in the Second Circuit, according to Law360. The judge cited thin evidence of the company’s losses due to the kickback scandal where Finazzo steered business to South Bay Apparel owned by Douglas Dey for a cut of the profits.
Neiman Marcus lost its data hacking appeal. The luxury department store suffered a data breach in 2013 and its credit card customers wanted to sue the retailer. The Seventh Circuit had originally decided against Neiman’s, saying the customers could sue and Neiman’s fought back with an appeal. The court decided to let its original ruling stand. Neiman’s recently filed to become a public company again, so the idea of potentially paying millions to consumers won’t sit well with the market.
American Eagle Outfitters disclosed that executive chairman and interim chief executive officer Jay Schottenstein bought 500,000 shares of the company at $15.74. The stock jumped 3.7 percent on Thursday on the news.