Written by Investing.com Staff, Investing.com
U.S. stocks mixed at close of trade; Dow Jones Industrial Average up 0.32%
U.S. stocks were mixed after the close on Friday, as gains in the Telecoms, Oil & Gas and Utilities sectors led shares higher while losses in the Technology, Financials and Consumer Services sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average added 0.32% to hit a new all time high, while the S&P 500 index declined 0.04%, and the NASDAQ Composite index declined 0.51%.
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The best performers of the session on the Dow Jones Industrial Average were McDonald’s Corporation (NYSE:MCD), which rose 2.80% or 4.51 points to trade at 165.30 at the close. Meanwhile, Cisco Systems Inc (NASDAQ:CSCO) added 1.74% or 0.83 points to end at 48.56 and Chevron Corp (NYSE:CVX) was up 1.43% or 1.71 points to 121.13 in late trade.
The worst performers of the session were Intel Corporation (NASDAQ:INTC), which fell 1.14% or 0.54 points to trade at 46.66 at the close. Walt Disney Company (NYSE:DIS) declined 1.09% or 1.22 points to end at 110.40 and Apple Inc (NASDAQ:AAPL) was down 1.08% or 2.37 points to 217.66.
The top performers on the S&P 500 were IPG Photonics Corporation (NASDAQ:IPGP) which rose 4.17% to 169.34, American Airlines Group(NASDAQ:AAL) which was up 4.08% to settle at 43.60 and Under Armour Inc C (NYSE:UA) which gained 3.03% to close at 18.700.
The worst performers were Darden Restaurants Inc (NYSE:DRI) which was down 3.06% to 112.89 in late trade, Micron Technology Inc (NASDAQ:MU) which lost 2.87% to settle at 44.74 and Chipotle Mexican Grill Inc (NYSE:CMG) which was down 2.65% to 467.37 at the close.
The top performers on the NASDAQ Composite were Cool Holdings Inc (NASDAQ:AWSM) which rose 80.95% to 19.000, Astrotech Corp (NASDAQ:ASTC) which was up 71.47% to settle at 5.590 and Netlist Inc (NASDAQ:NLST) which gained 49.12% to close at 0.650.
The worst performers were GTX Inc (NASDAQ:GTXI) which was down 92.27% to 1.8000 in late trade, Titan Pharmaceuticals Inc (NASDAQ:TTNP) which lost 56.67% to settle at 0.2167 and Bio Path Holdings Inc (NASDAQ:BPTH) which was down 36.46% to 0.610 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1518 to 1495 and 143 ended unchanged; on the Nasdaq Stock Exchange, 1458 fell and 1141 advanced, while 114 ended unchanged.
Shares in Cisco Systems Inc (NASDAQ:CSCO) rose to 5-year highs; gaining 1.74% or 0.83 to 48.56. Shares in Cool Holdings Inc (NASDAQ:AWSM) rose to 52-week highs; up 80.95% or 8.500 to 19.000. Shares in GTX Inc (NASDAQ:GTXI) fell to 3-years lows; down 92.27% or 21.4900 to 1.8000. Shares in Titan Pharmaceuticals Inc (NASDAQ:TTNP) fell to 5-year lows; down 56.67% or 0.2834 to 0.2167. Shares in Bio Path Holdings Inc (NASDAQ:BPTH) fell to 5-year lows; falling 36.46% or 0.350 to 0.610.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 2.03% to 11.56 a new 1-month low.
Gold Futures for December delivery was down 0.65% or 7.90 to $1203.40 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in November rose 0.74% or 0.52 to hit $70.84 a barrel, while the November Brent oil contract rose 0.06% or 0.05 to trade at $78.75 a barrel.
EUR/USD was down 0.20% to 1.1753, while USD/JPY rose 0.08% to 112.57.
The US Dollar Index Futures was up 0.33% at 93.78.
See also:
Stocks – Dow Notches Another Record High as Defensive Stocks Rally
Canada stocks lower at close of trade; S&P/TSX Composite down 0.16%
Mexico stocks lower at close of trade; S&P/BMV IPC down 0.36%
Peru stocks higher at close of trade; S&P Lima General up 0.60%
After Hours Gainers / Losers (09/21/2018) (Seeking Alpha)
Dow hits new closing high ahead of index reshuffle (Reuters)
The dollar rose against its rivals on Friday, as investors reined in appetite for emerging-market currencies, while the pound racked up losses as the UK and EU reached an “impasse,” on a post-Brexit deal.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.40% to 93.84.
UK Prime Minister Theresa May criticized the EU for rejecting her post-Brexit plans, citing it “unacceptable,” particularly as the bloc failed to put forward alternative proposals.
May further claimed that the UK and EU were at an “impasse,” denting optimism for a post-Brexit deal agreement following recent reports that the EU were set to adopt a warmer approach to Brexit talks.
GBP/USD fell 1.41% to $1.3075, eroding most of the week’s gain as the pair looks set to end the week roughly flat.
The dollar was also supported by profit-taking on emerging-market currencies like the South African rand and Turkish lira, both of which have enjoyed sharp gains on the back of improving sentiment in developing economies.
Turkey unveiled a new economic program earlier this week to reduce its current account deficit, while South Africa’s central bank stood pat on interest rates Thursday.
Elsewhere, EUR/USD fell 0.29% to $1.1743 on weaker-than-expected eurozone manufacturing data. The single currency was set, however, to post a second-straight weekly gain ahead of an important week, as the Italian government is slated to release its budget on Thursday.
USD/CAD rose 0.11% to C$1.2917 amid doubts over a successful outcome on U.S.-Canada talks after White House Economic Adviser Hassett reportedly said U.S.was nearing a deal on NAFTA with Mexico, but not Canada.
Analysts said the loonie would likely continue to trade around current levels as Canadian core inflation remains subdued. From ING:
“Unless we see a major uptick in core inflation dynamics, then we think markets are adequately pricing in only one further Bank of Canada rate hike in 2018.”
USD/JPY rose 0.08% to Y112.57. The pair is likely to continue to strengthen, supported by rising U.S. treasury bond yields, Saxo Bank said. John J Hardy, head of forex strategy at Saxo Bank:
“Rising U.S. long yields in an environment of strong risk appetite are driving the losses in the yen.”
Gold prices headed lower on Friday as a stronger dollar dented demand for the precious metal, but it was still on track for its first weekly climb in four as investors recentered their attention on the Federal Reserve.
At 11:14 AM ET (15:14 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell $9.00, or 0.74%, to $1,202.30 a troy ounce.
Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of six major currencies, was up 0.33% to 93.78, paring weekly losses to around 1.5%.
The fall in dollar this week came as safe-haven demand for the U.S. currency ebbed amid continued relief that fresh U.S. and Chinese tariffs on reciprocal imports were less harsh than originally feared.
On Monday, the U.S. slapped tariffs of 10% on $200 billion in Chinese goods, before they rise to 25% by the end of 2018, rather than an outright 25%.
China retaliated by putting tariffs on $60 billion in U.S. goods. However, China will put a 10% tariff on some goods it had previously earmarked for a 20% levy.
A stronger dollar dampens demand for gold as it makes dollar-denominated commodities more expensive for holders of other currencies.
The precious metal has dropped more than 10% from a peak in April as escalating U.S.-China trade dispute and rising U.S. interest rates were cited as catalysts for the selling in gold.
After an economic report released Friday showed that U.S. private sector business activity had slowed to a 17-month low in September, investors looked ahead to the next Fed policy decision to be announced on Sept. 26.
While a rate hike is a foregone conclusion, markets will pay close attention to the Fed’s economic projections to see its forecasts for interest rates, particularly in 2019.
In other metals trading, silver futures gained 0.42% at $14.365 a troy ounce by 11:16 AM ET (15:16 GMT).
Palladium futures rose 1.31% to $1,044.30 an ounce, while sister metal platinum traded up 0.79% at $828.40.
In base metals, copper jumped 3.98% to $2.849 a pound.
See also:
- Copper sprints to best day in 19 months but gold falls as trade fears ease (Seeking Alpha)
- Gold prices end at 1-week low as stocks hit records and the U.S. dollar regains buoyancy (MarketWatch)
WTI crude oil prices settled higher Friday, as traders cheered signs of tightening U.S. output, though sentiment was soured by a report suggesting major oil producers were ready to discuss plans to ramp up output.
On the New York Mercantile Exchange, crude futures for October delivery rose 46 cents to settle at $70.78 a barrel, while on London’s Intercontinental Exchange, Brentgained 0.09% to trade at $78.77 a barrel.
Oilfield services firm Baker Hughes reported on Friday that the number of U.S. oil drilling rigs in operation rose by 1 to 866 this week.
The fall in rig counts, pointing to signs of tightening crude output, did little to calm fears that major oil producers would discuss ramping up output in a bid to offset an expected drop in Iranian crude exports as U.S. sanctions loom. OPEC and non-OPEC countries are set to gather at a meeting in Algiers over the weekend. Reuters reported, citing a source:
“There are discussions to increase production by another 500,000 (barrels a day) bpd. They (OPEC and non-OPEC) can increase output when they meet in December.”
President Donald Trump pulled the United States out of the Iran nuclear agreement in May, allowing sanctions against Iran to snap back into place. The first wave of sanctions went into effect last month and a second set of sanctions on Iran’s crude exports are slated for early November.
Crude oil prices fell sharply on the report, but clawed back losses amid ongoing expectations that oil prices had further room to advance.
JPMorgan raised its fourth-quarter Brent forecast by $22 a barrel to $85 and fourth-quarter WTI forecast by $19.80 a barrel to $75.83.
Crude oil prices settled higher for the second week in row Friday, after wild ride, as oil prices came under attack following remarks from Trump on Thursday.
Trump demanded OPEC find a way slash oil prices just days after Saudi officials reportedly said they would be comfortable with oil prices above $80 a barrel.
Yet that did little to knock gains from earlier in the week following a bullish petroleum report.
Inventories of U.S. crude fell by 2.057 million barrels for the week ended Sept. 14, missing expectations for a draw of 2.74 million barrels, the Energy Information Administration (EIA) said on Wednesday.
See also:
- Exclusive: OPEC and allies consider oil output boost as Iranian supply falls – source (Reuters)
- Saudi Arabia worried about oil prices above $80 (Forexlive).
Natural Gas (FXEmpire)
Natural gas prices moved sideways after breaking out on Thursday as inventories remained in line with expectations but a cold weather forecast boosted future expected demand. Demand has already been climbing according to the EIA, as power consumption moved higher in the latest week. With NOAA forecasting colder than normal weather over the next week, heating demand will begin to tick up just when inventories are well below the 5-year average range. With the 5-year average prices at 3.12, prices are below their historical value. Those who are short are betting that high level of production will offset rising demand.
Technical Analysis
Natural gas prices moved sideways forming an inside day where the high is less than the prior days high and the low is higher than the prior days low which is a sign of indecision. Prices broke out on Thursday above trend line resistance and hovered above that level near 2.96 which is short-term support. The 10-day moving average crossover above the 50-day moving average which signals that a short-term up trend is in place. 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).
Demand Rises Ahead of the Withdrawal Season
Demand rises, driven by consumption in the electric power sector. Total U.S. consumption of natural gas rose by 5% compared with the previous report week, according to the EIA. Natural gas consumed for power generation climbed by 14% week over week. Industrial sector consumption decreased by 2% week over week. In the residential and commercial sectors, consumption declined by 12%. Natural gas exports to Mexico were the same as last week, averaging 4.7 Bcf per day. The withdrawal season begins October 31, and a cold snap could actually generate a draw ahead of schedule.
