Written by Investing.com Staff, Investing.com
U.S. stocks mixed at close of trade; Dow Jones Industrial Average down 0.09%
U.S. stocks were mixed after the close on Friday, as gains in the Consumer Services, Technology and Financials sectors led shares higher while losses in the Oil & Gas, Utilities and Telecoms sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average lost 0.09%, while the S&P 500 index climbed 0.01%, and the NASDAQ Composite index added 0.26%.
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The best performers of the session on the Dow Jones Industrial Average were Cisco Systems Inc (NASDAQ:CSCO), which rose 1.31% or 0.62 points to trade at 47.77 at the close. Meanwhile, Nike Inc (NYSE:NKE) added 1.23% or 1.00 points to end at 82.20 and Apple Inc (NASDAQ:AAPL) was up 1.16% or 2.60 points to 227.63 in late trade.
The worst performers of the session were Boeing Co (NYSE:BA), which fell 1.18% or 4.11 points to trade at 342.79 at the close. Chevron Corp (NYSE:CVX) declined 1.13% or 1.35 points to end at 118.46 and Coca-Cola Company (NYSE:KO) was down 0.85% or 0.38 points to 44.57.
The top performers on the S&P 500 were Ulta Beauty Inc (NASDAQ:ULTA) which rose 6.38% to 260.00, DaVita HealthCare Partners Inc (NYSE:DVA) which was up 4.18% to settle at 69.29 and NRG Energy Inc (NYSE:NRG) which gained 2.14% to close at 35.39.
The worst performers were Signet Jewelers Ltd (NYSE:SIG) which was down 5.14% to 64.20 in late trade, The Goodyear Tire & Rubber Company (NASDAQ:GT) which lost 4.38% to settle at 22.69 and The AES Corporation (NYSE:AES) which was down 3.17% to 13.46 at the close.
The top performers on the NASDAQ Composite were American Outdoor Brands Corp (NASDAQ:AOBC) which rose 43.60% to 14.03, Innovate Biopharmaceuticals Inc (NASDAQ:INNT) which was up 36.14% to settle at 7.12 and Midatech Pharma PLC (NASDAQ:MTP) which gained 29.11% to close at 0.858.
The worst performers were Bridgeline Digital Inc (NASDAQ:BLIN) which was down 15.94% to 1.1600 in late trade, CPI Card Group Inc (NASDAQ:PMTS) which lost 15.51% to settle at 3.16 and Wins Finance Holdings Inc (NASDAQ:WINS) which was down 13.90% to 70.00 at the close.
Rising stocks outnumbered declining ones on the New York Stock Exchange by 1628 to 1387 and 132 ended unchanged; on the Nasdaq Stock Exchange, 1602 rose and 963 declined, while 159 ended unchanged.
Shares in Ulta Beauty Inc (NASDAQ:ULTA) rose to 52-week highs; gaining 6.38% or 15.59 to 260.00. Shares in NRG Energy Inc (NYSE:NRG) rose to 3-years highs; gaining 2.14% or 0.74 to 35.39. Shares in Cisco Systems Inc (NASDAQ:CSCO) rose to 5-year highs; rising 1.31% or 0.62 to 47.77. Shares in Apple Inc (NASDAQ:AAPL) rose to all time highs; rising 1.16% or 2.60 to 227.63.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 4.66% to 12.90.
Gold Futures for December delivery was up 0.04% or 0.50 to $1205.50 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in October fell 0.47% or 0.33 to hit $69.92 a barrel, while the November Brent oil contract fell 0.42% or 0.33 to trade at $77.69 a barrel.
EUR/USD was down 0.51% to 1.1608, while USD/JPY rose 0.12% to 111.12.
The US Dollar Index Futures was up 0.41% at 95.03.
See also:
Stocks – Dow Reverses Gains to Close Lower as Trade Turmoil Continues
Canada stocks lower at close of trade; S&P/TSX Composite down 0.72%
Mexico stocks lower at close of trade; S&P/BMV IPC down 0.21%
Peru stocks lower at close of trade; S&P Lima General down 1.07%
The dollar rose sharply against its rivals Friday, as rising global trade tensions spurred demand for the greenback.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.45% to 95.07.
Concerns over a global trade war came to the fore Friday, as President Donald Trump rejected the proposal from the EU to eliminate tariffs on cars if the U.S. did the same, claiming the offer is “not good enough.”
Weaker-than-expected eurozone inflation data piled on the pressure in the euro, leaving the single currency on course to post a monthly loss.
EUR/USD fell 0.65% to $1.1590.
The Canadian dollar had trade issues of its own to contend with, as traders fretted the outcome of U.S.-Canada trade efforts to renegotiation the North American Free Trade Agreement (NAFTA).
USD/CAD rose 0.60% to C$1.3063. Canadian Foreign Minister Chrystia Freeland said:
“We’re looking for a good deal, not just any deal. And we’ll only agree to a deal that is a good deal for Canada.”
Trump set a Friday deadline for Canada to sign a new agreement with the U.S. and Mexico. But the Toronto Star reported that Trump said in an off-the-record briefing he was not prepared to give any concessions.
Fears over a full-blown global trade war also come as reports surfaced that the Trump was considering moving ahead with tariffs on $200 billion worth of goods from China.
U.S. economic data showing an improvement in consumer sentiment had little sway on market direction.
The University of Michigan index was 96.2 in August, above both a previous reading of 95.3, and economists’ expectations for a reading of 95.5.
A weaker pound, meanwhile, also kept the dollar on track for a monthly gain as Brexit-related uncertainty continued to weigh.
GBP/USD fell 0.40% to $1.2963. Forex specialist ACLS Global said:
“A thaw in the stalemate between the U.K. and the EU over the U.K.’s plan to leave the bloc is unlikely and sterling is likely to keep falling.”
USD/JPY rose 0.01% to Y111.00 as concerns over global trade tensions triggered demand for safe-haven yen.
Gold prices rose on Friday as Canada and the U.S. rushed to finish trade negotiations before the end of the day.
Comex gold futures for December delivery rose 0.43% to $1,210.20 a troy ounce as of 11:02 AM ET (15:02 GMT). Trade is expected to be light ahead of the Labor Day weekend, with markets closed on Monday.
The price of gold was driven higher as trade tensions pushed investor sentiment from equities to commodities. Canadian and American officials are negotiating the NAFTA trade agreement ahead of a deadline at the end of the day. The U.S. reached a deal with Mexico on Monday and has given Canada until Friday to join in the new trade deal.
Other trade tensions continued, with China warning on Friday that putting pressure on Beijing wouldn’t work. U.S. President Donald Trump wants to move ahead with a plan to impose tariffs on $200 billion worth of Chinese goods when the public comment period ends next week.
In addition, Trump said Thursday in an interview that he was prepared to withdraw from the World Trade Organization if necessary.
Meanwhile the European Union offered to eliminate tariffs on cars, but Trump said the offer was “not good enough.” Trump has threatened to impose a 25% tariff on all vehicles, with the EU threatening to retaliate.
The price of gold was unmoved by a higher greenback. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.21% to 94.84.
Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Other metals were mostly higher on the Comex, with silver futures up 0.28% to $14.635 a troy ounce. Among other precious metals, platinum futures rose 0.38% to $794.80, while palladium futures increased 0.67% to $967.10 an ounce. Copper futures slumped 0.75% to $2.697 a pound.
See also:
- Metals Prices’ Wild Ride in August Set to End on Sour Note
- Gold trims early gains but manages to hold above $1200 mark (FXStreet)
WTI crude oil prices settled lower Friday, on signs of expanding U.S. output and fears over lower oil-demand growth amid rising global trade tensions.
On the New York Mercantile Exchange, crude futures for October delivery fell 45 cents to settle at $69.80 a barrel, while on London’s Intercontinental Exchange, Brentfell 0.55% to trade at $77.59 a barrel.
Oilfield services firm Baker Hughes reported on Friday that the number of U.S. oil drilling rigs in operation rose by 2 to 862.
The rise in rig counts, pointing to signs of expanding output, comes as data, released earlier this week, showed rising U.S. output steadied at 11.0 million barrels a day, unchanged from the prior week.
Renewed concerns over an escalation in the U.S.-China trade war stoked fears of lower oil demand growth, adding to downside momentum in oil prices. China, the world’s largest commodity importer, has seen economic growth dwindle since the trade war with the U.S. kicked off, and a further escalation could dent growth, forcing Beijing to rein in crude imports.
Oil prices ended the month nearly 2% higher amid renewed bets on a global supply shortage as U.S. sanctions on Iran’s crude exports are expected to reduce crude from market, underpinning higher crude prices. Bank of American Merrill Lynch said in note to clients:
“Press reports indicate that Iranian crude oil and condensate exports in August are poised to drop below 2.25 million barrels a day – marking three straight monthly declines, a 600,000bpd drop versus April and helping crystallize the risk that US sanctions squeeze global oil supply placing upward pressure on international prices.”
Both WTI and Brent crude are expected gain on a potential slump in Iranian exports, although gains in WTI prices will be limited as the refinery maintenance season is set to get underway. According to Bank of American Merrill Lynch:
“An active maintenance season in the US Mid-Continent may prevent the WTI benchmark increasing.”
Maintenance season tends to halt refinery activity, slowing demand for crude stockpiles used as inputs in the production of product inventories like gasoline.
Oil prices were also helped earlier in the week by an EIA report showing crude oil stockpiles fell much more than expected.
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Natural Gas (FXEmpire)
Natural gas prices increased on Friday, recapturing former resistance now support at the 10-day moving average at 2.92. Warmer than normal weather is expected to cover most of the United States for the next 6-10 and 8-14 days which should generated additional cooling demand. There is a tropical disturbance which has moved off the cost of Africa, and is now in the Atlantic and has more than a 60% chance of becoming a tropical storm according to the National Oceanic Atmospheric Administration.
Technical Analysis
Prices rose 1.6%, recapturing the 10-day moving average. Support below this level is seen near the 50-day moving average at 2.86. Momentum has turned positive as the MACD (moving average convergence divergence index) generated a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line).
Overall supply is flat
The Department of Energy reports that the average total supply of natural gas remained about the same as in the previous report week, averaging 88.2 Bcf per day. Dry natural gas production remained constant week over week. Average net imports from Canada increased by 5% from last week.
Overall demand is flat
The EIA reported that total U.S. consumption of natural gas was unchanged from the previous report week, averaging 62.3 Bcf per day. Natural gas consumed for power generation remained largely unchanged, averaging 35.0 Bcf/d. However, with mixed temperatures across the Lower 48 states, regional power demand varied; demand in the Northeast increased the most, averaging about 0.9 Bcf per day higher this week compared to last week, while demand in the West saw the largest declines, averaging about 0.7 Bcf per day lower this week compared to last week. Industrial sector consumption stayed constant, averaging 19.8 Bcf per day. In the residential and commercial sectors, consumption remained at last week’s level, averaging 7.5 Bcf per day. Natural gas exports to Mexico decreased 2%.
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