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posted on 28 October 2016

Investing.com Weekly Summary 28 October 2016

Written by , Investing.com

U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.05%

U.S. stocks were lower after the close on Friday, as losses in the Healthcare, Consumer Services and Oil & Gas sectors led shares lower.

At the close in NYSE, the Dow Jones Industrial Average declined 0.05%, while the S&P 500 index lost 0.31%, and the NASDAQ Composite index lost 0.50%.

The best performers of the session on the Dow Jones Industrial Average were Chevron Corporation (NYSE:CVX), which rose 3.94% or 3.94 points to trade at 103.86 at the close. Meanwhile, General Electric Company (NYSE:GE) added 2.10% or 0.60 points to end at 29.23 and United Technologies Corporation (NYSE:UTX) was up 1.78% or 1.78 points to 101.85 in late trade.

The worst performers of the session were Merck & Company Inc (NYSE:MRK), which fell 4.01% or 2.46 points to trade at 58.83 at the close. Exxon Mobil Corporation (NYSE:XOM) declined 2.52% or 2.19 points to end at 84.73 and Pfizer Inc (NYSE:PFE) was down 1.66% or 0.54 points to 31.94.

The top performers on the S&P 500 were Royal Caribbean Cruises Ltd (NYSE:RCL) which rose 9.40% to 74.45, Baker Hughes Incorporated (NYSE:BHI) which was up 8.39% to settle at 59.12 and Hanesbrands Inc (NYSE:HBI) which gained 8.32% to close at 25.78.

The worst performers were McKesson Corporation (NYSE:MCK) which was down 22.39% to 124.57 in late trade, AmerisourceBergen (NYSE:ABC) which lost 13.03% to settle at 69.14 and Cardinal Health Inc (NYSE:CAH) which was down 9.76% to 67.50 at the close.

The top performers on the NASDAQ Composite were Gravity Co Ltd (NASDAQ:GRVY) which rose 115.38% to 9.800, Virtus Investment Partners Inc (NASDAQ:VRTS) which was up 19.82% to settle at 111.55 and Myos Rens Technology Inc (NASDAQ:MYOS) which gained 18.44% to close at 1.670.

The worst performers were Opexa Therapeutics Inc (NASDAQ:OPXA) which was down 70.00% to 1.050 in late trade, Senomyx Inc (NASDAQ:SNMX) which lost 59.25% to settle at 1.080 and eHealth Inc (NASDAQ:EHTH) which was down 32.91% to 7.48 at the close.

Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1867 to 1254 and 105 ended unchanged; on the Nasdaq Stock Exchange, 1404 fell and 1020 advanced, while 173 ended unchanged.

Shares in McKesson Corporation (NYSE:MCK) fell to 3-years lows; down 22.39% or 35.93 to 124.57. Shares in Baker Hughes Incorporated (NYSE:BHI) rose to 52-week highs; rising 8.39% or 4.58 to 59.12. Shares in AmerisourceBergen (NYSE:ABC) fell to 52-week lows; down 13.03% or 10.36 to 69.14. Shares in Cardinal Health Inc (NYSE:CAH) fell to 52-week lows; falling 9.76% or 7.30 to 67.50. Shares in Gravity Co Ltd (NASDAQ:GRVY) rose to 52-week highs; gaining 115.38% or 5.250 to 9.800. Shares in Opexa Therapeutics Inc (NASDAQ:OPXA) fell to all-time lows; down 70.00% or 2.450 to 1.050. Shares in Senomyx Inc (NASDAQ:SNMX) fell to all-time lows; down 59.25% or 1.570 to 1.080. Shares in eHealth Inc (NASDAQ:EHTH) fell to all-time lows; down 32.91% or 3.67 to 7.48.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 5.40% to 16.19.

Gold for December delivery was up 0.47% or 6.00 to $1275.50 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 2.11% or 1.05 to hit $48.67 a barrel, while the December Brent oil contract fell 1.53% or 0.77 to trade at $49.70 a barrel.

EUR/USD was up 0.82% to 1.0986, while USD/JPY fell 0.52% to 104.73.

The US Dollar Index was down 0.62% at 98.31.

Read additional news from Reuters at Investing.com.

Forex

The Aussie fell slightly and the yen gained a tad in Asia on Friday as homes sales in Australia eased from the previous month's pace and Japan showed inflation figures as expected amid some signs of life on household spending and jobs.

USD/JPY changed hands at 105.23, down 0.05%, while AUD/USD traded at 0.7589, down 0.03%. GBP/USD was up 0.12% at at 1.2177.

Australia reported HIA new home sales for October gained 3.8% after a rise of 6.1% month-on-month in September, and PPI figures for the third quarter showed a 0.5% increase year-on-year, compared to a with a 0.8% gain seen, and a 0.3% rise quarter-on-quarter, lower than the 0.6% rise expected.

Earlier in Japan, national CPI for September fell 0.5% year-on-year as and national core CPI also fell 0.5% year-on-year, the seventh straight drop. Retailers are cautious about raising prices sectors as uncertainty over global and domestic growth remains a factor as well as a lack of wage hikes that make it nearly impossible to achieve a sustained 2% inflation rate as sought by the Bank of Japan by next year.

As well in Japan, household spending dipped 2.1% year-on-year in September, the seventh straight decline, compared to a drop of 3.0% seen and jumped 2.8% month-on-month with a 0.6% gain expected.

The unemployment rate eased to 3.0%, a 21-year-low also touched in July 2016, from 3.1%. The continued improvement in the labor market has failed to boost average

wages, and thus consumer spending, as firms are cautious about raising costs due to uncertainty over global and domestic demand as well as sliding inflation expectations.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.04% to 98.88.

Investors await U.S. third quarter growth data on Friday, which is expected to show a significant rebound from the second quarter.

Overnight, the dollar pushed higher against the other major currencies on Thursday, despite the release of mixed U.S. economic reports as expectations for a rate hike later this year remained high.

Data on Thursday showed that U.S. orders for long lasting manufactured goods fell slightly in September.

Total durable goods orders, which include transportation items, dropped 0.1% last month, the Commerce Department said.

But excluding defense spending, durable-goods orders rose by 0.7%. Stripping out transportation, orders rose 0.2%.

Core capital goods orders, viewed as a key measure of business investment slumped 1.2% last month, the largest drop since February and were down 4.1% on a yearly basis.

A separate report showed that the number of Americans filing for unemployment benefits fell by 3,000 to 258,000 last week, pointing to sustained labor market strength and firming economic growth.

CTFC Commitment of Traders

This week speculators were more bullish on the crude and less bullish on Gold, Silver and the Japanese yen. Sentiment turned bearish on the S&P 500 and became more bearish on the euro.

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.oct.12

Gold

Gold prices moved lower during Europe's session on Friday, as investors looked ahead to the publication of the U.S. third quarter gross domestic product (GDP) and its possible impact on Federal Reserve (Fed) monetary policy .

Gold for December delivery on the Comex division of the New York Mercantile Exchange dropped $1.35, or 0.11%, to $1,268.15 a troy ounce by 3:51AM ET (07:51GMT).

The U.S. is set to release preliminary data on third quarter GDP at 8:30AM ET (12:30GMT) Friday. Consensus expects the reading to show a significant strengthening from the second quarter’s 1.4% growth to a 2.5% expansion.

Fed officials have indicated that interest rates could rise in December if the economy remains on track.

The near-term outlook for gold remains cloudy as a recent string of positive U.S. economic data combined with hawkish remarks from key Fed officials heightened expectations for an interest rate hike before the end of the year.

The U.S. central bank's next meeting is in November, but a rate hike ahead of the presidential election is seen as unlikely.

Instead, traders are currently pricing in around a 78% chance of a rate hike at the Fed's December meeting, according to Investing.com's Fed Rate Monitor Tool.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.

A day earlier, the yellow metal gained $3.10, or 0.25%, after data showed that orders for U.S. manufactured capital goods unexpectedly fell in September.

Total durable goods orders, which include transportation items, dropped 0.1% last month, the Commerce Department said, compared to economists' expectations for a gain of 0.1%.

Core durable goods orders, which exclude volatile transportation items, rose 0.2% last month, in line with forecasts.

Durable goods excluding defense and aircrafts slumped 1.2% in September, compared to expectations for a 0.3% gain.

A separate report released at the same time on Thursday showed that the number of people who filed for unemployment assistance in the U.S. last week fell less than expected, but remained in territory associated with a healthy labor market.

The number of individuals filing for initial jobless benefits decreased by 3,000 last week to 258,000, the Department of Labor said. Analysts expected jobless claims to fall by 6,000 to 255,000 from the previous week’s total of 261,000.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 98.74 early Friday, within sight of a nine-month high of 99.09 touched earlier this week.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Also on the Comex, silver futures for December delivery shed 1.6 cents, or 0.09%, to $17.623 a troy ounce during morning hours in London, while copper futures gained 0.3 cents, or 0.16%, to $2.163 a pound.

Oil

Oil was lower Friday as investors weighed up the chances of a planned output cut by OPEC. U.S. crude was down 23 cents, or 0.46%, at $49.49 at 07:00 ET as Brent crude shed 0.26% to $50.34.

OPEC experts Friday gathered in Vienna for talks on the proposed production cut to 32.5-33 million barrels a day. OPEC is due to hold a formal meeting on November 30 in Vienna to seal a deal to address a global supply glut.

Iraq and Iran have indicated they do not want to cut output, while non-OPEC member Russia is leaning toward a production freeze.

Baker Hughes U.S. rig count figures for the latest week are due for release later in the session.

The number of rigs currently operating in the U.S. stands at 443, the highest level since early February.

The dollar was firm at higher levels. A stronger dollar undermines demand for oil. See later article from Reuters at Investing.com: OPEC officials fail to agree on how to curb oil supplies.

Natural Gas (Thursday Report)

U.S. natural gas futures extended gains on Thursday morning, rising to the highest levels of the session after data showed that natural gas supplies in storage in the U.S. rose broadly in line with market expectations last week.

Natural gas for delivery in December on the New York Mercantile Exchange rallied 4.5 cents, or 1.48%, to $3.081 per million British thermal units by 10:55AM ET (14:55GMT). Futures were at around $3.053 prior to the release of the supply data.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. rose by 73 billion cubic feet in the week ended October 21, matching market expectations.

That compared with a gain of 77 billion cubic feet in the preceding week, 62 billion a year earlier and a five-year average build of 76 billion cubic feet.

Total U.S. natural gas storage stood at 3.909 trillion cubic feet, just 1.3% higher than levels at this time a year ago and 4.7% above the five-year average for this time of year.

Natural gas futures have been under heavy selling pressure in recent days as warmer-than-average weather in key gas-consuming regions in the U.S. ignited speculation that a mild winter will curtail demand for the heating fuel and leave a glut of it in storage, weighing on prices next year.

Gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.

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