Investing.com Weekly Wrap-Up 26 June 2015

U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 0.32%

by Investing.com Staff, Investing.com

U.S. stocks were mixed after the close on Friday, as gains in the Utilities,Financials and Consumer Services sectors led shares higher while losses in theTechnology, Basic Materials and Healthcare sectors led shares lower.

At the close in New York, the Dow Jones Industrial Average added 0.32%, while theS&P 500 index lost 0.03%, and the NASDAQ Composite index lost 0.62%.

The best performers of the session on the Dow Jones Industrial Average were Nike Inc (NYSE:NKE), which rose 4.27% or 4.49 points to trade at 109.71 at the close. Meanwhile, McDonald’s Corporation (NYSE:MCD) added 1.57% or 1.50 points to end at 97.29 and Merck & Company Inc (NYSE:MRK) was up 1.02% or 0.59 points to 58.49 in late trade.

The worst performers of the session were Intel Corporation (NASDAQ:INTC), which fell 3.03% or 0.97 points to trade at 31.02 at the close. EI du Pont de Nemours and Company (NYSE:DD) declined 0.83% or 0.55 points to end at 65.60 and Microsoft Corporation (NASDAQ:MSFT) was down 0.74% or 0.34 points to 45.31.

The top performers on the S&P 500 were Nike Inc (NYSE:NKE) which rose 4.27% to 109.71, Cablevision Systems Corporation (NYSE:CVC) which was up 3.96% to settle at 25.19 and Marathon Oil Corporation (NYSE:MRO) which gained 3.51% to close at 27.75.

The worst performers were Micron Technology Inc (NASDAQ:MU) which was down 18.17% to 19.66 in late trade, Zoetis Inc (NYSE:ZTS) which lost 12.21% to settle at 48.62 and Qorvo Inc (NASDAQ:QRVO) which was down 5.38% to 80.41 at the close.

The top performers on the NASDAQ Composite were Local Corporation (NASDAQ:LOCM) which rose 27.14% to 0.044, Westell Technologies Inc (NASDAQ:WSTL) which was up 25.25% to settle at 1.240 and Royal Bancshares of Pennsylvania (NASDAQ:RBPAA) which gained 20.21% to close at 2.320.

The worst performers were Celladon Corp (NASDAQ:CLDN) which was down 38.64% to 1.35 in late trade, Perseon Corp (NASDAQ:PRSN) which lost 29.96% to settle at 1.800 and Real Goods Solar Inc (NASDAQ:RGSE) which was down 27.52% to 3.160 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1610 to 1516 and 4 ended unchanged; on the Nasdaq Stock Exchange, 1673 fell and 1153 advanced, while 3 ended unchanged.

Shares in Nike Inc (NYSE:NKE) rose to all time highs; gaining 4.27% or 4.49 to 109.71. Shares in Micron Technology Inc (NASDAQ:MU) fell to 52-week lows; down 18.17% or 4.37 to 19.66. Shares in Nike Inc (NYSE:NKE) rose to all time highs; rising 4.27% or 4.49 to 109.71. Shares in Celladon Corp (NASDAQ:CLDN) fell to all time lows; down 38.64% or 0.85 to 1.35. Shares in Perseon Corp (NASDAQ:PRSN) fell to 52-week lows; losing 29.96% or 0.770 to 1.800. Shares in Royal Bancshares of Pennsylvania (NASDAQ:RBPAA) rose to 52-week highs; gaining 20.21% or 0.390 to 2.320.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 0.64% to 14.10.

Additional stock news from Reuters at Investing.com.

Forex

EUR/USD fell mildly on Friday extending losses from one session earlier, amid increased optimism in Greek Debt negotiations with emergency meetings set to resume on Saturday.

The currency pair traded between 1.1131 and 1.1220 during Friday’s session, paring earlier losses in U.S. afternoon trading. For the week, the euro closed lower against its American counterpart on four of five sessions losing 1.75% during the stretch. At one point on Monday EUR/USD moved above 1.14, before plunging on Tuesday below 1.12 during one of its worst sessions of the year.

EUR/USD likely gained support at 1.1080, the low from June 8 and was met with resistance at 1.1438, the high from June 18.

Following two days of intense, high-level talks in Brussels, Greece prime minister Alexis Tsipras was scheduled to return to Athens on Friday to discuss a revised proposal with members of his cabinet and parliament. The new proposal from Athens’ international creditors includes the release of €15.5 billion of frozen aid in four installments, a package that could allow Greece to meet its debt obligations to the International Monetary Fund and the European Central Bank through November. In exchange, the proposal requires Greece to enact significant pension and tax reforms that the cash-strapped nation has resisted for months. European Commissioner president Jean-Claude Juncker and Tsipras met well into Thursday evening in an effort to hash out the critical issues.

The euro group of finance ministers is set to meet again on Saturday afternoon, where Greece will be asked whether it will accept a revised deal from its troika of creditors from the IMF, ECB and European Commission. If Athens declines the proposal, the group will then concentrate its efforts on limiting the consequences of a Greek default on its sovereign debt.

On Tuesday, the final €7.2 billion of a €240 bailout to Greece will expire if the two sides cannot reach a deal. Greece is also facing a deadline on Tuesday to meet a bundled €1.5 billion loan repayment to the IMF stemming from a separate bailout program in 2010. It is unlikely Greece will be able to make the payment without a last-minute deal.

In the U.S., the University of Michigan Consumer Sentiment Index surged to 96.1 for June, well above the high end of analysts’ forecasts for a reading of 95.2. The 13.1 gain since a reading from late-March represents the survey’s highest monthly gain since March, 1991. It also comes one day after the U.S. Department of Commerce said consumer spending surged 0.9% on a monthly basis in May, bolstered by a 0.5% uptick in personal income.

The news pushed U.S. government bond prices lower, as yields on 10-Year Treasuriessoared more than eight basis points to 2.48%, their highest level since late-September. Yields on German 10-Year bunds rose six basis points to 0.92%. They are now up 38 basis points on the month.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained 0.22% to 95.60. USD/JPY gained 0.17% to 123.85, while USD/CAD fell 0.04% to 1.2322.

CTFC Commitment of Traders

Lots of bears this week as speculators turned more bearish on EUR, JPY, CAD, AUD, NZD and the S&P 500. Sentiment was less bearish on the Mexcian peso and more bullish on Gold.

Gold

Gold inched up on Friday amid a stronger dollar and renewed optimism for a Greek bailout deal to halt a lengthy six-session losing streak.

On the Comex division of the New York Mercantile Exchange, gold for August delivery gained 2.20 or 0.19% to 1.174.00. Gold traded in a tight range of 1,168.10 and 1,177.90 on Friday, ending the week down more than $20 an ounce. Since peaking above $1,205 on June 18, gold is down more than 2.5%.

Following two days of intense, high-level talks in Brussels, Greece prime minister Alexis Tsipras was scheduled to return to Athens on Friday to discuss a revised proposal with members of his cabinet and parliament. The new proposal from Athens’ international creditors includes the release of €15.5 billion of frozen aid in four installments, a package that could allow Greece to meet its debt obligations to the International Monetary Fund and the European Central Bank through November. In exchange, the proposal requires Greece to enact significant pension and tax reforms that the cash-strapped nation has resisted for months. European Commissioner president Jean-Claude Juncker and Tsipras met well into Thursday evening in an effort to hash out the critical issues.

The euro group of finance ministers is set to meet again on Saturday afternoon, where Greece will be asked whether it will accept a revised deal from its troika of creditors from the IMF, ECB and European Commission. If Athens declines the proposal, the group will then concentrate its efforts on limiting the consequences of a Greek default on its sovereign debt.

Gold is viewed as a safe haven for investors in periods of severe economic instability.

On Tuesday, the final €7.2 billion of a €240 billion bailout to Greece will expire if the two sides cannot reach a deal. Greece is also facing a deadline on Tuesday to meet a bundled €1.5 billion loan repayment to the IMF stemming from a separate bailout program in 2010. It is unlikely Greece will be able to make the payment without a last-minute deal.

In the U.S., the University of Michigan Consumer Sentiment Index surged to 96.1 for June, well above the high end of analysts’ forecasts for a reading of 95.2. The 13.1 gain since a reading from late-March represents the survey’s highest monthly gain since March, 1991. It also comes one day after the U.S. Department of Commerce said consumer spending surged 0.9% on a monthly basis in May, bolstered by a 0.5% uptick in personal income.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained more than 0.35% to an intraday high of 95.86 before falling slightly back in U.S. afternoon trading. On Monday, the dollar surged more than 1.15% to a two-week high at 95.89, amid increased expectations for a Greek deal.

Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.

Silver for July delivery fell 0.055 or 0.35% to 15.753 an ounce.

Copper for July delivery gained 0.030 or 1.15% to 2.653 a pound.

Oil

Crude oil futures fell to one-week lows on Friday, as the U.S. dollar remained supported by the previous session’s upbeat U.S. data and amid growing concerns over the outcome of Greek debt negotiations.

On the New York Mercantile Exchange, crude oil for August delivery hit $59.45 during European early afternoon hours, down 26 cents, or 0.41%. A day earlier, Nymex oil prices dropped 57 cents, or 0.95%, to end at $59.70.

The dollar found support after data on Thursday showed that U.S. personal spending rose by 0.9% in May, above expectations for a gain of 0.7%.

The report also showed personal income rose by 0.5% in May, in line with forecasts and after rising 0.5% in April.

In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending June 20 increased by 3,000 to 271,000 from the previous week’s total of 268,000. Analysts had expected initial jobless claims to rise by 4,000 to 272,000 last week.

Separately, energy traders have been paying close attention to gasoline stockpiles in recent weeks as the U.S. driving season entered its peak gasoline demand period.

Total crude oil inventories fell by 4.9 million barrels last week to 463.0 million, compared to expectations for a drop of 2.1 million barrels to 465.8 million.

Meanwhile, market participants continued to monitor the Greek debt situation after negotiations between Athens and its creditors broke down once again on Thursday.

Time is running out for the Greek government to secure a deal to unlock bailout funds ahead of the looming deadline for a €1.6 billion repayment to the International Monetary Fund on June 30.

If Greece misses the payment it risks going into default, which could trigger the country’s exit from the euro area.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for August delivery inched down 5 cents, or 0.06%, to trade at $63.16 a barrel. On Thursday, London-traded Brent futures fell by 29 cents, or 0.46%, to settle at $63.20.

The spread between the Brent and the WTI crude contracts stood at $3.71 a barrel.

Natural Gas (Thursday Report)

Natural gas futures trimmed gains on Thursday, despite data showing that U.S. natural gas supplies rose less than expected last week.

Natural gas for delivery in August rose 2.4 cents, or 0.88%, on the New York Mercantile Exchange to trade at $2.806 per million British thermal units during U.S. morning hours. Prices were at around $2.846 prior to the release of the supply data.

A day earlier, natural gas prices fell to $2.733, the lowest level since June 9, before turning higher to end at $2.782, up 3.6 cents, or 1.31%. Futures were likely to find support at $2.733, the low from June 25, and resistance at $2.905, the high from June 18.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended June 19 rose by 75 billion cubic feet, compared to expectations for an increase of 77 billion and following a build of 89 billion cubic feet in the preceding week.

Supplies rose by 110 billion cubic feet in the same week last year, while the five-year average change is an increase of 86 billion cubic feet.

Total U.S. natural gas storage stood at 2.508 trillion cubic feet as of last week. Stocks were 695 billion cubic feet higher than last year at this time and 35 billion cubic feet above the five-year average of 2.473 trillion cubic feet for this time of year.

Meanwhile, investors focused on near-term weather forecasts to gauge the strength of demand for the fuel.

Updated weather forecasting models called for higher-than-normal temperatures across most parts of the U.S. in the next three days. However, a cooler weather system from Canada was expected to push readings to near normal across much of Northeast and Midwest early next week.

Demand for natural gas tends to fluctuate in the summer based on hot weather and air conditioning use. Natural gas accounts for about a quarter of U.S. electricity generation.