Written by Investing.com Staff, Investing.com
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.77%
U.S. stocks were lower after the close on Friday, as losses in the Basic Materials, Financials and Technology sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average declined 0.77%, while the S&P 500 index declined 0.71%, and the NASDAQ Composite index fell 0.67%.
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The best performers of the session on the Dow Jones Industrial Average were Walmart Inc (NYSE:WMT), which rose 1.31% or 1.17 points to trade at 90.18 at the close. Meanwhile, Chevron Corp (NYSE:CVX) added 0.66% or 0.81 points to end at 123.34 and Walgreens Boots Alliance Inc (NASDAQ:WBA) was up 0.48% or 0.32 points to 66.49 in late trade.
The worst performers of the session were Intel Corporation (NASDAQ:INTC), which fell 2.57% or 1.29 points to trade at 48.85 at the close. Caterpillar Inc (NYSE:CAT) declined 1.88% or 2.60 points to end at 135.92 and DowDuPont Inc (NYSE:DWDP) was down 1.85% or 1.28 points to 67.74.
The top performers on the S&P 500 were Helmerich & Payne Inc (NYSE:HP) which rose 3.50% to 62.62, Electronic Arts Inc (NASDAQ:EA) which was up 2.74% to settle at 131.32 and Flowserve Corporation (NYSE:FLS) which gained 2.52% to close at 50.10.
The worst performers were News Corp A (NASDAQ:NWSA) which was down 13.50% to 13.20 in late trade, News Corp B (NASDAQ:NWS) which lost 12.66% to settle at 13.45 and Microchip Technology Incorporated (NASDAQ:MCHP) which was down 10.88% to 87.41 at the close.
The top performers on the NASDAQ Composite were Chiasma Inc (NASDAQ:CHMA) which rose 40.00% to 1.75, Trade Desk Inc (NASDAQ:TTD) which was up 37.13% to settle at 127.93 and Sonoma Pharmaceuticals Inc (NASDAQ:SNOA) which gained 32.18% to close at 2.300.
The worst performers were Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) which was down 83.14% to 0.06 in late trade, Gemphire Therapeutics Inc (NASDAQ:GEMP) which lost 44.95% to settle at 1.80 and Endologix Inc (NASDAQ:ELGX) which was down 36.92% to 2.99 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2013 to 1014 and 128 ended unchanged; on the Nasdaq Stock Exchange, 1487 fell and 1052 advanced, while 151 ended unchanged.
Shares in Flowserve Corporation (NYSE:FLS) rose to 52-week highs; gaining 2.52% or 1.23 to 50.10. Shares in Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) fell to all time lows; down 83.14% or 0.28 to 0.06. Shares in Trade Desk Inc (NASDAQ:TTD) rose to all time highs; gaining 37.13% or 34.64 to 127.93. Shares in Gemphire Therapeutics Inc (NASDAQ:GEMP) fell to all time lows; down 44.95% or 1.47 to 1.80. Shares in Endologix Inc (NASDAQ:ELGX) fell to 5-year lows; down 36.92% or 1.75 to 2.99.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 16.95% to 13.18.
Gold Futures for December delivery was down 0.07% or 0.80 to $1219.10 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 1.36% or 0.91 to hit $67.72 a barrel, while the October Brent oil contract rose 1.18% or 0.85 to trade at $72.92 a barrel.
EUR/USD was down 1.04% to 1.1408, while USD/JPY fell 0.14% to 110.92.
The US Dollar Index Futures was up 0.75% at 96.18.
See also:
Stocks – Dow Posts Triple-Digit Loss as Turkey Turmoil Spooks Markets
Canada stocks lower at close of trade; S&P/TSX Composite down 0.57%
Mexico stocks lower at close of trade; S&P/BMV IPC down 1.85%
The dollar rose to fresh 2018 highs against its rivals Friday after the euro slumped on concerns about European banks’ exposure to Turkey as the country’s currency crashed.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.88% to 96.30.
Turkey’s lira dropped to a record low against the dollar after President Donald Trump doubled metals tariffs on Turkey. That stoked investor concerns about Turkey’s ability to pay its debts, leaving many fearing the fallout could spread beyond Turkey’s border.
Fears of market contagion were somewhat justified after reports surfaced that the European Central Bank was assessing its exposure to Turkey.
Data from the Bank for International Settlements showed that banks in Spain, France and Italy had the highest exposure to the Turkish economy at the end of the first quarter, adding up to $81 billion, $35 billion and $18 billion respectively.
Analysts, however, were quick to downplay the impact on European banks, citing most of the exposure was to Turkish equity, and not a falling lira. Tim Ash, EM sovereign debt strategist at BlueBay, said:
“Spanish banks are not owed US$83.3bn and French banks are not owed in FX, this is local bank subsidiaries’ balance sheets in Turkey, which are mostly in lira. European banks’ exposure in Turkey through these subsidiaries is really just limited to equity,”
That did little to stop investors betting against the euro, however, as the single currency suffered its biggest slump in more than a year, underpinning the greenback.
EUR/USD fell 1.15% to $1.1396.
Upbeat U.S. consumer inflation data, meanwhile, supported the dollar’s advanced, reaffirming investor expectations for the Federal Reserve to hike rates twice more this year.
The Labor Department said on Thursday its consumer price index rose 0.2% last month, and core CPI rose 2.4% last month, higher than economists’ estimates.
GBP/USD fell 0.62% to $1.2748 as data showing the U.K. economy steadied in the second quarter of year was overshadowed by ongoing fears of a no-deal Brexit.
The yen, meanwhile, strengthened as the rout of the Turkey’s lira triggered safe-haven demand.
USD/JPY fell 0.36%% to Y110.68, USD/CAD rose 0.74% to C$1.3144.
Metals prices were mostly lower Friday as a plunging euro pushed the dollar above a year high, rattling investor sentiment on dollar-dominated commodities. But gold steadied on safe-haven demand.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $0.90, or 0.07%, to $1,219.00 a troy ounce, but remained above an intraday low of $1,213.20.
The euro slumped, lifting the dollar, as worries mounted about European banks’ exposure to the plunging Turkish lira after President Donald Trump doubled metals tariffs on the country. The increased trade tariffs against Turkey come at a time of growing doubts about the country’s ability to repay its debt.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.80% to 96.22, to a more-than-one-year high.
A rising greenback, which usually spells trouble for dollar-denominated commodities such as gold, drew a muted downside reaction in the yellow metal, however. Safe-haven demand gathered pace amid fears that a stronger greenback would hit emerging-market economies. Those fears were largely played out in currency markets as a slew of emerging-market currencies slumped, including the South African randand Hungarian forint.
As well as gold, safe-havens such as the yen, Treasuries and bunds traded sharply higher.
The impact of the swashbuckling greenback was evident in the wider metals market as copper and zinc prices tumbled.
Copper prices fell 0.81% to $2.74, while zinc prices fell 2.52% at 2,540.25.
Aluminium prices rose 0.87% to 2,092.50, while nickel Futures fell 0.41% to 13,812.50.
Silver futures fell 0.92% to $15.32 a troy ounce, while platinum futures lost 0.49% to $830.00
See also: United States CFTC Gold NC net positions: $12.7K vs previous $35.3K (FXStreet)
WTI crude oil prices slumped to a weekly loss, despite settling higher Friday on renewed bets on steeper losses of Iranian crude from market. Expectations for a rebound in oil demand growth also lifted sentiment.
On the New York Mercantile Exchange crude futures for September delivery rose 82 cents settle at $67.63 a barrel, while on London’s Intercontinental Exchange, Brent rose 0.97% to trade at $72.77 barrel.
The International Energy Agency (IEA) on Friday raised its estimate of world oil demand growth next year to 1.5 million barrels a day (bpd) from 1.4 million bpd.
The energy watchdog also confirmed that Iran’s output continued to fall, reaffirming expectations that the United States tough stance on sanctions against Iran were starting to curb demand for crude from the Islamic Republic.
Iran’s output was the lowest since April last year at 3.75 million bpd as Europe reduced its Iranian crude imports and South Korea completely stopped its Iranian imports, the IEA said.
On the supply side, however, the IEA said non-OPEC production would continue to rise, led by U.S. producers. The IEA raised its estimate for growth in non-OPEC oil output next year to 1.9 million bpd day, from 1.8 million bpd in its previous report.
The IEA’s report arrived as data showed the number of U.S. oil rigs drilling for oil rose sharply, pointing to possible signs of rising domestic output.
Oilfield services firm Baker Hughes reported on Friday that the number of U.S. oil drilling rigs in operation rose by 10 to 869.
The Energy Information Administration, however, said on Wednesday domestic production fell for the second-straight week to 10.8 million barrels a day.
The rise in WTI crude oil prices came much too late in the week to avert a sixth-straight weekly loss, following sharp declines mid-week amid bearish crude data and concerns about the U.S.-China trade war.
Inventories of U.S. crude fell by 1.351 million barrels for the week ended Aug. 3, missing expectations for a draw of 2.800 million barrels, according to data from the EIA on Wednesday.
See also Crude Oil Price Forecast – crude oil breaks out to the upside (FXEmpire).
Natural Gas (FXEmpire)
Natural gas markets rallied again for the week but are starting to run into significant resistance above. Because of this, the author thinks we may have one more week of bullish pressure before we roll over yet again. That being said, anything is possible and that there are specific levels we should all be watching.
Natural gas markets initially fell during the week but then turned around to rally towards the $2.95 level. We have found some resistance there, but I think the major resistance is closer to the $3.00 level above, an area that I think will bring in a lot of fresh selling. That being the case, I believe that the market participants are looking at another week of bullish pressure at best, before the oversupply of natural gas comes back into effect. Remember, fracking companies in the United States for the most part are profitable at the $3.00 level, so that has been a bit of a lid on the market.
I would zoom down to the daily chart, look for an exhaustive candle to start selling as close to the $3.00 level as possible. That resistance runs all the way to the $3.10 level above, so you need to give yourself a little bit of room for stops. In the short term though, we will probably rally a bit to go test the $3.00 level, as it will be to juicy of a target for traders to ignore.
I would expect a lot of volatility, but we are starting to head out of the hottest month in the United States, so that may drive down some demand as well. Beyond that, if there’s a global slowdown, that should be poor for energy as well, which of course includes natural gas.
