Late Thursday, Moody’s cited significant exposure to volatility and risk of large losses from capital markets activities in its ratings cuts.Despite the downgrade, analysts took a positive view on the market, sighting that the downgrades on the whole were slightly less negative than many had feared.
In Europe, markets were mostly lower, with the Stoxx Europe 600 down -0.7%, as more downbeat economic data weighed on sentiment.
In corporate news, Ryder System slid; leading the S&P 500 lower, after the truck-rental company lowered its second-quarter and full-year earnings outlooks, citing lower-than-expected demand for commercial rental products. This could be a major indicator as the trucking provider slows; a possible sign of slowing manufacture.
Facebook rose, extending its more-than-20% rally from its early-June lows, which followed concerns about the social network’s valuation and botched initial public offering.
Thomas Doherty is an undergraduate at Villanova University majoring in Finance and Economics. Thomas@KeeneOnTheMarket.com