Stocks end choppy week with loss

US stock markets fell during early trading and remained negative throughout the day.

In addition to a lower-than-expected preliminary reading from the University of Michigan’s consumer confidence survey (71.0 vs. 72.0 expected), investors also faced a “fourfold witch” day.

This occurs four times a year in March, June, September and December and marks the simultaneous expiration of index futures, index options, stock options and individual futures. It can often lead to larger-than-normal volume and erratic movement in all or parts of the market.

By the end, the Dow Jones Industrial Average fell 0.5% to 34,584, the S&P 500 Index was 0.9% lower at 4,432 and the Nasdaq composite had returned 0.9% to 15,043, with all three indices wiping out their weekly gains.

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Next week, all eyes will be on the Federal Reserve’s latest policy announcement, due Wednesday afternoon.

Barclays economists “expect the commission to indicate its willingness to slow the pace of asset purchases ‘later this year’, pending further progress towards the dual mandate. [of inflation and unemployment]However, they don’t believe there will be a formal announcement until November or December.

Other news at the fair today:

• The small cap Russell 2000 finished 0.2% higher at 2,236.

• M&A buzz helped shares of . to lift Invesco (IVZ) 5.5% today. In particular, a report in The Wall Street Journal suggested that the financial company is in talks to merge with State Streets (STT, -2.6%) asset management division, according to acquaintances. “We are not surprised that IVZ has fallen into the crosshairs of another asset manager,” said CFRA analyst Catherine Seifert. “We believe the merger of these two companies makes sense and would strengthen the already strong presence of STT’s exchange-traded fund (ETF). We warn that a potential merger of the number four ETF provider (IVZ) with the third largest ETF provider (STT), while it may overtake Vanguard and the second-largest ETF provider, could also raise antitrust concerns.” Seifert has a buy recommendation on Invesco.

• Thermo Fisher Scientific (TMO, +6.5%) got a lift after the medtech company generated guidelines. TMO expects 2022 earnings of $21.16 per share on revenue of $40.3 billion, well above $19.68 per share and an average of $34.3 billion to sales analysts.

• US crude oil futures fell 0.9% to $71.97 a barrel.

• gold futures fell 0.3% to finish at $1,751.40 an ounce, marking their third loss in a row.

• The CBOE Volatility Index (VIX) rose by 11.3% to 20.81.

• Bitcoin rose 0.1% to $47,505.29. (Bitcoin trades 24 hours a day; the prices quoted here are from 4 p.m. each trading day.)

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Stay on track with stocks

Don’t let the daily headlines distract you from the long-term basics.

There are several reasons to be constructive with stocks, said Tony DeSpirito, CIO of BlackRock’s US Fundamental Active Equities, including the return to a more normal, shareholder-friendly distribution of capital. In addition to rising share buybacks, which reached the record levels of 2018, many publicly traded companies are increasing and recovering dividends.

“Through July, 45% of the dividend payers in the Russell 1000 have increased,” notes DeSpirito. “This compares to an annualized average of 61%. At this rate, we estimate that more than 75% of dividend payers in the index could increase their payout by the end of the year.”

If you want to refresh the best dividend payers, check out the generous returns in real estate investment trusts (REITs) and healthcare stocks. And there are always the loved ones Dividend Aristocrats, companies with a track record of increasing shareholder returns for the last 25 consecutive years.

Not sure where to start? Look at these five names. This elite list has received top billing from Wall Street professionals based on their current financial situation and future prospects.

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