The Dow, S&P and Nasdaq all closed the third quarter up more than fifteen percent each, but today is a new quarter with a different direction for the markets. The Dow has lost about 150 points, the S&P has given back about 20 points and the Nasdaq is hurting the most, off 50 points on the day.
Leading the news this week has been the financial sector which saw asset sales continuing from the major banks. Citigroup (NYSE:C) finalized the sale of its Japanese brokerage unit today in a deal valued at $8.7 billion. Citigroup said it expects to realize an immaterial after-tax gain on the sale in the fourth quarter. Also selling assets this week was Bank of America (NYSE:BAC). The troubled bank is selling its long-term asset management unit to Ameriprise Financial (NYSE:AMP) in a deal worth $900 million to $1.2 billion depending on asset flows.
Investors turned bearish on financials mid-week, sending the iShares Financial Sector ETF (AMEX:IYF) down more than two percent today and off more than one half of one percent on the week.
The food & beverage sector received a boost this week when Citigroup initiated coverage on Coca Cola (NYSE:KO) and Dr. Pepper / Snapple (NYSE:DPS). The investment firm rated both companies as a Buy, setting a price target of $35 for Dr. Pepper / Snapple and a $61 price target for Coca Cola.
However, tumbling markets on Thursday ate into those gains, leaving the PowerShares Food & Beverage ETF (AMEX:PBJ) close to even on the week.
And the retail sector saw mixed news this week. Walgreens (NYSE:WAG) announced better-than-expected earnings this week of forty four cents per share as same store sales increased 2.4% in the quarter. While the earnings drove stocks higher on Tuesday, the excitement was tempered by Wal-Mart's (NYSE:WMT) cautious outlook on the global economic recovery and UBS's downgrade of Target (NYSE:TGT).
The Retail HOLDRs ETF (AMEX:RTH) has relinquished most of its gains, as it now trades higher by less than one percent this week.
For MarketNewsVideo.com, I'm Nichole Dossous.
