The Nasdaq Biotechnology Index slumped 2.3 percent to a four-month low after people familiar with the matter said U.S. prosecutors are bearing down on generic pharmaceutical companies in a sweeping criminal investigation into suspected price collusion. Endo Pharmaceuticals Plc plunged 17 percent, the most in six months.
Almost 80 percent of S&P 500 companies have reported earnings this season, with 56 percent beating sales expectations and 76 percent topping profit forecasts. Kraft Heinz Co. and Starbucks Corp. are among firms posting quarterly results today. Analysts forecast profit for the benchmark’s members will rise 1.6 percent for the period, on pace to end the longest earnings recession since the financial crisis.
The S&P 500 closed below the technically sensitive 2,100 level yesterday for the first time since July 7. The Dow Jones Industrial Average today slipped 16.91 points to 17,942.73, and the Nasdaq Composite Index lost 0.8 percent. Trading in S&P 500 shares was 13 percent above the 30-day average for this time of the day.
Investors yesterday were unmoved by the Federal Reserve’s widely expected decision to stand pat on interest rates. Policy makers reinforced expectations for a hike in December after saying the argument for higher borrowing costs strengthened further amid accelerating inflation. Traders are pricing in a 78 percent chance the central bank will act next month.
Ahead of the government’s monthly payrolls report, a reading today today showed filings for unemployment benefits unexpectedly rose to the highest level in almost three months. Another measure indicated service industries expanded less than projected in October, consistent with moderate growth in the biggest part of the economy. Data also showed factory orders in September rose more than forecast.
This story was provided by Bloomberg News.