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posted on 07 July 2017 Weekly Wrap-Up 07 July 2017

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U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.44%

U.S. stocks were higher after the close on Friday, as gains in the Technology, Industrials and Consumer Services sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average rose 0.44%, while the S&P 500 index gained 0.64%, and the NASDAQ Composite index climbed 1.04%.

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The best performers of the session on the Dow Jones Industrial Average were McDonald’s Corporation (NYSE:MCD), which rose 2.08% or 3.18 points to trade at 156.27 at the close. Meanwhile, Nike Inc (NYSE:NKE) added 1.43% or 0.81 points to end at 57.98 and Microsoft Corporation (NASDAQ:MSFT) was up 1.30% or 0.89 points to 69.46 in late trade.

The worst performers of the session were Goldman Sachs Group Inc (NYSE:GS), which fell 0.62% or 1.41 points to trade at 225.28 at the close. General Electric Company (NYSE:GE) declined 0.61% or 0.16 points to end at 26.15 and Chevron Corporation (NYSE:CVX) was down 0.32% or 0.33 points to 103.49.

The top performers on the S&P 500 were DR Horton Inc (NYSE:DHI) which rose 3.77% to 35.79, Applied Materials Inc (NASDAQ:AMAT) which was up 3.40% to settle at 43.54 andLennar Corporation (NYSE:LEN) which gained 3.10% to close at 53.48.

The worst performers were Frontier Communications Corporation (NASDAQ:FTR) which was down 3.64% to 1.06 in late trade, L Brands Inc (NYSE:LB) which lost 2.97% to settle at 45.11 and Chesapeake Energy Corporation (NYSE:CHK) which was down 2.58% to 4.540 at the close.

The top performers on the NASDAQ Composite were Zion Oil & Gas Inc (NASDAQ:ZN) which rose 39.01% to 5.880, Avinger Inc (NASDAQ:AVGR) which was up 30.61% to settle at 0.64 and Digital Ally Inc (NASDAQ:DGLY) which gained 33.33% to close at 4.200.

The worst performers were Cerecor Inc (NASDAQ:CERC) which was down 41.19% to 0.835 in late trade, Cherokee Inc (NASDAQ:CHKE) which lost 36.13% to settle at 4.95 and Precipio Inc (NASDAQ:PRPO) which was down 29.77% to 11.0966 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 2100 to 990 and 146 ended unchanged; on the Nasdaq Stock Exchange, 1803 rose and 696 declined, while 130 ended unchanged.

Shares in DR Horton Inc (NYSE:DHI) rose to 5-year highs; gaining 3.77% or 1.30 to 35.79. Shares in Frontier Communications Corporation (NASDAQ:FTR) fell to all time lows; falling 3.64% or 0.04 to 1.06. Shares in McDonald’s Corporation (NYSE:MCD) rose to all time highs; rising 2.08% or 3.18 to 156.27. Shares in General Electric Company (NYSE:GE) fell to 52-week lows; down 0.61% or 0.16 to 26.15. Shares in Zion Oil & Gas Inc (NASDAQ:ZN) rose to 5-year highs; up 39.01% or 1.650 to 5.880. Shares in Cherokee Inc (NASDAQ:CHKE) fell to 5-year lows; down 36.13% or 2.80 to 4.95.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 10.85% to 11.18.

Gold Futures for August delivery was down 0.93% or 11.36 to $1211.94 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August fell 2.61% or 1.19 to hit $44.33 a barrel, while the September Brent oil contract fell 2.72% or 1.31 to trade at $46.80 a barrel.

EUR/USD was down 0.16% to 1.1405, while USD/JPY rose 0.62% to 113.92.

The US Dollar Index Futures was up 0.20% at 95.77.

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Read more news from Reuters at Tech's market leadership over? Not so fast.


The dollar rose against basket of global currencies on Friday, as investors cheered the release of a mostly upbeat nonfarm payrolls report, showing a stronger than expected pace of employment growth but an uptick in the unemployment rate.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.23% to 95.80.

The Bureau of Labor Statistics reported Friday, nonfarm payrolls grew by 222,000 in June, well above expectations of a 179,000 increase, but the unemployment rate fell to 4.4%, a notch above analysts’ forecasts of 4.3%.

Average hourly earnings were up 2.5 per cent year-over-year missing economists’ forecasts for a 2.6 per cent increase.

The rise in the greenback, weighed on dollar-related currency pairs, with the pound and Canadian dollar falling to session lows.

GBP/USD fell to $1.2885, down 0.66%, after a data on Friday showed manufacturing activity in May undershot expectations, declining 0.2% against economists’ forecasts of a 0.5% increase.

Also adding to sterling woes, was a slump in industrial output while the trade deficitcontinued to widen.

USD/CAD dipped by 0.89% to C$1.2863, as the oil-linked Canadian dollar came under pressure after oil prices fell more than 2% on the back of oversupply jitters.

EUR/USD bounced off session lows to $1.1405, down 0.16%, while EUR/GBP added 0.5% to $0.8852.

The single currency has remained bullish, after the minutes from European Central Bank’s previous meeting, revealed that policymakers had discussed removing the central bank’s long-standing pledge to expand or extend its bond-purchase programme.

USD/JPY hit two-month highs, rising to Y114.03, up 0.71%.

Commitments of Traders

This week bullishness increased for the S&P 500, euro, and the Aussie dollar; bullishness decreased for gold and silver; bearishness decreased for the pound and increased for the yen.

Note: This data is for the week ending on Tuesday so the last three days (this week two because markets were closed Friday) of trading are not reflected.



Gold prices slumped to a four-month low, after data on Friday showed an improvement in the U.S. labor market, fuelling expectations that the Federal Reserve will keep to its plan to increase interest rates at least once more this year.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $3.08, or 0.25%, to $1,245.01 a troy ounce.

The Bureau of Labor Statistics reported Friday, nonfarm payrolls grew by 222,000 in June, well above expectations of a 179,000 increase, but the unemployment rate fell to 4.4%, a notch above analysts’ forecasts of 4.3%.

Average hourly earnings were up 2.5 per cent year-over-year missing economists’ forecasts for a 2.6 per cent increase.

The latest batch of mostly upbeat jobs data, fuelled expectations that the Fed would continue with its plan to hike rates later this year, spurring an uptick in both the dollar and bond yields while decreasing demand for the precious metal.

“[The U.S. nonfarm-payrolls data] brought negative news for gold traders as the number from the outset looks acceptable," said Naeem Aslam chief market analyst at ThinkMarkets UK.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar - A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

Other precious metals also fell victim to a rising greenback, as silver futures dropped 3.26% to $15.463, a troy ounce while platinum futures lost 0.56% to $905.20.

Copper traded at $2.650, down 0.43%, while natural gas, dipped by 0.83% to $2.865.


Oil prices fell more than 2.5 percent on Friday after data showed U.S. production and rig counts rose last week just as OPEC exports hit a 2017 high, casting doubt over efforts by producers to curb global oversupply.

Benchmark Brent futures (LCOc1) were down $1.36, or 2.8 percent, to $46.75 a barrel at 1:35 p.m. EDT (1735 GMT), after falling to $46.28, the lowest in more than a week.

U.S. West Texas Intermediate (WTI) crude futures (CLc1) traded down $1.28, or 2.8 percent, at $44.24 a barrel, after falling to $43.78.

After rising earlier in the week, both benchmarks were headed to weekly drops of more than 2.5 percent, a sixth weekly decline in the past seven.

"The stream of relentless supply continues," said Matt Smith, director of commodity research at Clipperdata.

He noted OPEC exports were 2 million barrels a day higher in June than in 2016, despite a May extension of a 1.8 million barrel a day production cut led by the Organization of the Petroleum Exporting Countries.

"We’ve seen exports last month from OPEC much stronger than they were in April and May, seemingly indifferent to the OPEC production cut deal," Smith said.

Reuters oil data showed OPEC production is now at the highest level this year.

Russia, which is cooperating with OPEC in a deal to stem production, said it was ready to consider revising parameters of the deal if needed.

A group of oil-producing countries monitoring the deal will meet on July 24 in Russia, when they could recommend adjusting the pact.

U.S. drillers added seven oil rigs in the week to July 7, energy services company Baker Hughes announced on Friday. This brings the total count up to 763, the most since April 2015. [RIG/U]

On Thursday, weekly U.S. government data showed that U.S. oil production rose 1 percent to 9.34 million barrels per day (bpd) after a drop the previous week due to maintenance work and storm shutdowns. According to Rob Haworth, senior investment strategist at U.S. Bank Wealth Management:

"It takes somewhat lower prices to slow down U.S. production."

Amidst rising U.S. production, the market largely ignored news from the U.S. Energy Information Administration (EIA) that U.S. crude inventories fell by 6.3 million barrels in the week to June 30 to 502.9 million barrels, the lowest since January.

U.S. bank Morgan Stanley (NYSE:MS) said it expected WTI prices to remain below $50 until mid-2018.

Natural Gas (Thursday Report)

U.S. natural gas futures recovered from a heavy fall in the prior session on Thursday, but stayed near the lowest level in around four months amid bearish weather forecasts that should limit demand for the fuel.

U.S. natural gas for August delivery was at $2.883 per million British thermal units by 8:50AM ET (1250GMT), up 4.1 cents, or around 1.5%.

It sank almost 4% on Wednesday to notch its fourth losing session in a row after sliding to the lowest level since March 7 at $2.832.

Temperatures are likely to be mostly normal in the eastern third of the U.S. during the next two weeks, according to updated weather forecasting models, underlining concern over decreased summer demand in the weeks ahead.

Prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on summer heating demand.

Gas use typically hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Nearly 50% of all U.S. households use gas for heating.

Total natural gas in storage currently stands at 2.816 trillion cubic feet, according to the U.S. Energy Information Administration, 10.2% lower than levels at this time a year ago but 6.4% above the five-year average for this time of year.

Market participants looked ahead to weekly storage data due on Friday, which is expected to show a build in a range between 57 and 69 billion cubic feet in the week ended June 30.

That compares with a gain of 46 billion cubic feet in the preceding week, an increase of 39 billion a year earlier and a five-year average rise of 66 billion cubic feet.

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