US markets closed lower on Deutsche Bank, Fed concerns

30 Sep 2016 Evaluate

The US markets closed lower on Thursday, following a sell-off fueled by investor worry about European banks and talk of a December rate increase by the Federal Reserve. Investors were following embattled giant German lender Deutsche BankAG, which has been buffeted by concerns about the health of its balance sheet, specifically its ability to withstand a potential $14 billion fine from the US Justice Department. Atlanta Federal Reserve President Dennis Lockhart stated that he supported the US central bank’s decision to leave interest rates unchanged at its policy meeting earlier this month until there was more evidence the economy is approaching the Fed’s goal of full employment and 2 percent inflation. Lockhart added that the Fed would raise interest rates before long. The jobs market has shown further improvement with signs of a modest rise in labor participation. This view on labor participation, together with modest capital spending, would support an expected 2 percent annual growth rate for the US economy. Fed Governor Jerome Powell, on the other hand, stated that Fed can afford to be patient in gradually raising rates as the economy slowly improves.

On the economy front, applications for unemployment benefits rose 3,000 to 254,000 in late September week stretching from September 18 to September 24, but the low level of initial claims points to a steadily improving labor market in which jobs are the easiest to find in years. Initial jobless claims slid below 300,000 in 2015 and have stayed there for 82 straight weeks. And new claims have tallied less than 270,000 for three months, a feat last accomplished in 1973. Lower claims in September could be a prelude to a strong employment report. The government will release the numbers next week. So far this year the economy has added an average of 182,000 new jobs a month. The unemployment rate, at 4.9%, is at an eight-year low. The average of new jobless claims over the past month fell 2,250 to 256,000 to match a post-recession low. The continuing jobless claims, meanwhile, declined by 46,000 to 2.06 million in the week ended September 17.

Meanwhile, business investment in the second quarter was actually a lot better than previously reported and that bodes well for third-quarter growth. A fresh look at the economy’s performance in the spring shows that gross domestic product grew at a 1.4% annual pace instead of 1.1%. The upgrade in GDP - basically a score card for the nation’s economy - largely reflected higher investment by companies than earlier government estimates showed. Investment excluding housing actually rose 1% instead of dropping 0.9%. The Atlanta Fed’s GDPNow forecast - which is based on a model tied to economic indicators - calls for 2.8% growth.

The Dow Jones Industrial Average lost 195.79 points or 1.07 percent to 18,143.45, Nasdaq dropped 49.40 points or 0.93 percent to 5,269.15, while S&P 500 was down 20.24 points or 0.93 percent to 2,151.13.

The Indian ADRs closed in red; Dr. Reddy’s Lab was down 1.65%, Tata Motors was down 1.27%, HDFC Bank was down 1.03%, ICICI Bank was down 0.46% and Infosys was down 0.02%.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Fiduciary-first advisory model.
As SEBI-registered IAs, we are legally and ethically bound to act in the best interests of our clients. We do not sell or distribute any financial products. This ensures our guidance is 100% unbiased and conflict-free.
Deep fundamental research + robust valuation discipline.
Built on more than 15 years of equity research, our framework combines quality assessment, intrinsic value estimation, and a sensible margin-of-safety approach.
Process—not predictions.
We don’t rely on guesswork or market timing. Instead, we focus on asset allocation, risk management, and long-term compounding.
Technology + Human Intelligence.
We believe a combination of both is essential for investing success. We constantly innovate and upgrade in-house tools, financial X-rays, and portfolio analytics so that our team of analysts and advisors are equipped with the best.
Partner with Clients.
We follow a DIWM (Do-It-With-Me) approach where we partner clients in setting goals, financial planning, educating on our investing process and share decision-enabling resources transparently with our clients who retain control on execution.

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

Investing in stocks, mutual funds, debt, and gold
Quality-at-Reasonable-Price way of investing in stocks
Constructing Direct Stock Portfolios with Core, Booster, and Amplifier stocks
A Mutual Fund Portfolio that delivers consistent out-performance and meaningful diversification (low overlap)
Periodic review and rebalancing
Clear Buy-Sell-Hold, and Position-sizing frameworks

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.