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posted on 02 September 2016

Investing.com Weekly Wrap-Up 02 September 2016

Written by , Investing.com

U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.39%

U.S. stocks were higher after the close on Friday, as gains in the Utilities,Oil & Gas and Basic Materials sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average gained 0.39%, while the S&P 500index added 0.42%, and the NASDAQ Composite index climbed 0.43%.

The best performers of the session on the Dow Jones Industrial Average were Boeing Company (NYSE:BA), which rose 0.96% or 1.25 points to trade at 131.15 at the close. Meanwhile, Apple Inc (NASDAQ:AAPL) added 0.94% or 1.00 points to end at 107.73 andVisa Inc (NYSE:V) was up 0.85% or 0.69 points to 81.99 in late trade.

The worst performers of the session were Nike Inc (NYSE:NKE), which fell 0.89% or 0.52 points to trade at 58.02 at the close. Wal-Mart Stores Inc (NYSE:WMT) declined 0.48% or 0.35 points to end at 72.49 and Procter & Gamble Company (NYSE:PG) was down 0.11% or 0.10 points to 88.21.

The top performers on the S&P 500 were VeriSign Inc (NASDAQ:VRSN) which rose 5.63% to 79.02, Chesapeake Energy Corporation (NYSE:CHK) which was up 5.60% to settle at 6.600 and Anadarko Petroleum Corp (NYSE:APC) which gained 5.51% to close at 56.49.

The worst performers were Carnival Corporation (NYSE:CCL) which was down 4.77% to 46.38 in late trade, Mylan Inc (NASDAQ:MYL) which lost 4.65% to settle at 39.97 andMallinckrodt (NYSE:MNK) which was down 4.23% to 72.39 at the close.

The top performers on the NASDAQ Composite were Siebert Financial Corp (NASDAQ:SIEB) which rose 31.03% to 1.520, Nova Lifestyle I (NASDAQ:NVFY) which was up 25.00% to settle at 1.250 and Impinj Inc (NASDAQ:PI) which gained 18.50% to close at 32.67.

The worst performers were Dynavax Technologies Corporation (NASDAQ:DVAX) which was down 31.56% to 10.91 in late trade, ChemoCentryx Inc (NASDAQ:CCXI) which lost 20.23% to settle at 4.220 and Xtera Communications Inc (NASDAQ:XCOM) which was down 19.76% to 0.682 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 2503 to 661 and 69 ended unchanged; on the Nasdaq Stock Exchange, 1665 rose and 833 declined, while 127 ended unchanged.

Shares in Visa Inc (NYSE:V) rose to all time highs; gaining 0.85% or 0.69 to 81.99. Shares in Dynavax Technologies Corporation (NASDAQ:DVAX) fell to 3-years lows; losing 31.56% or 5.03 to 10.91. Shares in Impinj Inc (NASDAQ:PI) rose to all time highs; rising 18.50% or 5.10 to 32.67.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 11.35% to 11.95.

Gold for December delivery was up 0.91% or 11.95 to $1329.05 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October rose 2.64% or 1.14 to hit $44.30 a barrel, while the November Brent oil contract rose 2.75% or 1.25 to trade at $46.70 a barrel.

EUR/USD was down 0.37% to 1.1156, while USD/JPY rose 0.71% to 103.95.

The US Dollar Index was up 0.21% at 95.86.

Read additional news from Reuters at Investing.com.

Forex

The dollar erased losses and bounced off a one-week trough against the other major currencies on Friday, despite the release of disappointing U.S. economic reports.

EUR/USD slid 0.29% to at 1.1164, erasing earlier gains and after hitting session highs of 1.1252.

The U.S. Census Bureau said factory orders increased by 1.9% in July, slightly below forecasts for a gain of 2.0%.

The report came after the U.S. Labor Department said the economy added 151,000 jobs in August, disappointing expectations for an increase of 180,000. The number of jobs created increased by 275,000 in July, whose figure was revised from a previously estimated 255,000 gain.

The U.S. unemployment rate remained unchanged at 4.9% this month, confounding expectations for a downtick to 4.8%.

The report also showed that average hourly earnings rose 0.1% in August, below expectations for a 0.2% increase and after a 0.3% gain the previous month.

On a more positive note, the Bureau of Economic Analysis said the U.S. trade deficitnarrowed to $39.47 billion in July from $44.66 billion in June, whose figure was revised from a previously estimated deficit of $44.50 billion.

Analysts had expected the trade deficit to marrow to $42.70 billion in July.

GBP/USD advanced 0.31% at a fresh one-month high of 1.3309.

Research group Markit said on Friday thats its U.K. construction purchasing managers' index rose to 49.2 in August from 45.9 the previous month, beating expectations for an increase to 46.1.

The data came a day after Markit said its U.K. manufacturing PMI rose to a 10-month high this month, easing concerns over a potential economic slowdown in the U.K. following the June 23 vote to leave the European Union.

USD/JPY jumped 0.90% to trade at a five-week high of 104.14, while USD/CHF held steady at 0.9804.

The Australian and New Zealand dollars pared gains, with AUD/USD steady at 0.7555 and with NZD/USD almost unchanged at 0.7284.

Elsewhere, USD/CAD dropped 0.67% to trade at 1.3012, off Thursday's three-week peak of 1.3149.

Also Friday, Statistics Canada said the country's trade deficit narrowed to C$2.49 billion in July from C$3.97 billion in June, whose figure was revised from a previously estimated deficit of C$3.63 billion.

Analysts had expected the trade deficit to hit C$3.25 billion in July.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.14% at 95.80, off a one-week low of 95.18 hit earlier in the session.

CTFC Commitment of Traders

This week speculators were more bullish on the Japanese yen, U.S. stocks and the Swiss franc.

Note: This data closes on Wednesday so the last two days of trading are not reflected. There were was very little change in investor sentiment this week.

cot.2016.sep.01

Gold

Gold prices slipped lower on Friday, as markets turned their attention to the upcoming report on U.S. nonfarm payrolls for further hints on whether or not the Federal Reserve will raise interest rates later this year.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.24% at $1,314.05, just off the four-day high of 1,319.45 hit overnight.

The December contract ended Thursday's session 0.43% higher at $1,317.10 an ounce.

Futures were likely to find support at $1,301.50, Thursday's low and a more than two-month low and resistance at $1,340.50, the high from August 26.

Gold prices strengthed briefly thanks to a weaker U.S. dollar after the Institute for Supply Management said on Thursday that its manufacturing activity index dropped to 49.4 last month from July's reading of 52.6.

It was the worst reading since January and missed expectations for a slight drop to 52.0.

The report came shortly after data showed that U.S. initial jobless claims increased by 2,000 to 263,000 last week, compared to expectations for a 4,000 rise to 265,000.

Market participants were eyeing the U.S. nonfarm payrolls report due later Friday for further indications on the strength of the job market after Fed Vice Chairman Stanley Fischer saidearlier in the week that the U.S. labor market is almost at full strength and that the pace of interest rate increases will be data dependent.

Gold is sensitive to moves in U.S. rates. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Elsewhere in metals trading, silver futures for September delivery edged down 0.16% at $18.913 a troy ounce, while copper futures for September delivery climbed 0.65% to $2.089 a pound.

Oil

Oil prices rose 3 percent on Friday as a report showing weaker U.S. jobs growth in August suppressed the dollar, pushing up commodities, but crude futures remained on track for a big weekly loss on glut concerns.

U.S. employment growth eased more than expected last month after two straight months of robust gains and wage gains moderated, casting doubts the Federal Reserve Open Market Committee will raise interest rates at its Sept. 20-21 meeting.

The dollar index (DXY) weakened after the jobs report, making oil and other greenback-denominated commodities more affordable for holders of the euro and other currencies. [FRX/]Oil traders and investors will be on the lookout later in the afternoon for the weekly rig count report from energy services provider Baker Hughes. The oil rig count was unchanged last week after eight weeks of consecutive rises, but traders and analysts expect it to continue rising with the recovery in crude prices. [RIG/U]

Brent crude futures (LCOc1) were up $1.38, or 3 percent, at $46.83 a barrel by 11:44 a.m. EDT (1544 GMT). It was down about 6 percent on the week, on track for its biggest weekly loss since late July.

U.S. West Texas Intermediate futures (CLc1) gained $1.30 cents, also 3 percent, to $44.46. WTI was on course to a near 7-percent drop on the week, its most since early July.

Carl Larry Director, director of business development for oil & gas at Frost & Sullivan:

"With the FOMC likely to stay in September and the dollar dictating where we could go, it's quite likely oil will hold at mid-$40 levels. But more telling of how oil performs will be the rig count in coming weeks and OPEC gestures to support prices."

Oil rose earlier in the session on comments by Russia favorable to OPEC's hopes of implementing an output freeze with other oil producers.

The Organization of the Petroleum Exporting Countries, led by Saudi Arabia and other big Middle East crude exporters, will meet non-OPEC producers led by Russia at informal talks in Algeria between Sept. 26 and 28 to discuss a freeze output.

Russian President Vladimir Putin said in a Bloomberg interview such a freeze would be right to support prices.

If OPEC fails to strike a deal in Algeria, it is expected to try more action to prop the market its policy meeting in Vienna on Nov. 30.

Many analysts remain skeptical that it will be successful.

"The oil price will remain volatile over the coming weeks," said Hans van Cleef, senior oil economist at ABN Amro.

Natural Gas (Wednesday Report)

U.S. natural gas futures edged higher in choppy trade on Wednesday, rebounding from the prior day's losses as market players looked ahead to fresh weekly information on U.S. gas inventories to gauge the strength of demand for the fuel.

Natural gas for delivery in October on the New York Mercantile Exchange inched up 1.9 cents, or 0.67%, to trade at $2.846 per million British thermal units by 9:36AM ET (13:36GMT).

On Tuesday, futures sank 6.9 cents, or 2.38%, as a tropical depression moved away from the Gulf of Mexico, easing concerns over a disruption to supplies.

Market players looked ahead to weekly supply data due on Thursday, which is expected to show a build of approximately 35 billion cubic feet in the week ended August 26.

That compares with a gain of 11 billion cubic feet in the preceding week, 96 billion a year earlier and a five-year average of 67 billion cubic feet.

Total gas in storage currently stands at 3.350 trillion cubic feet, according to the U.S. Energy Information Administration, 8.3% higher than levels at this time a year ago and 8.2% above the five-year average for this time of year.

Some market analysts said persistent heat late into the season could push power generators to continue burning gas.

Unless intense late-summer heat boosts demand from power plants, stockpiles could possibly test physical storage limits of 4.3 trillion cubic feet at the end of October.

Meanwhile, forecasts for warmer than normal temperatures across most parts of the continental U.S. in the days ahead provided support.

Updated weather forecasting models pointed to very warm late summer temperatures into mid-September, boosting demand expectations for the cooling fuel.

Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning.

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