Written by Investing.com Staff, Investing.com
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 1.19%
U.S. stocks were lower after the close on Friday, as losses in the Consumer Services, Telecoms and Technology sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average lost 1.19%, while the S&P 500 index declined 1.73%, and the NASDAQ Composite index fell 2.07%.
Please share this article – Go to very top of page, right hand side for social media buttons.
The best performers of the session on the Dow Jones Industrial Average were Intel Corporation (NASDAQ:INTC), which rose 3.11% or 1.38 points to trade at 45.69 at the close. Meanwhile, Walgreens Boots Alliance Inc (NASDAQ:WBA) added 0.65% or 0.49 points to end at 76.23 and Merck & Company Inc (NYSE:MRK) was up 0.63% or 0.44 points to 70.40 in late trade.
The worst performers of the session were Home Depot Inc (NYSE:HD), which fell 3.82% or 6.84 points to trade at 172.23 at the close. Cisco Systems Inc (NASDAQ:CSCO) declined 2.68% or 1.22 points to end at 44.25 and American Express Company (NYSE:AXP) was down 2.27% or 2.35 points to 101.25.
The top performers on the S&P 500 were Roper Technologies Inc (NYSE:ROP) which rose 7.55% to 285.38, Cabot Oil & Gas Corporation (NYSE:COG) which was up 7.10% to settle at 22.92 and Cincinnati Financial Corporation (NASDAQ:CINF) which gained 6.62% to close at 76.50.
The worst performers were Mohawk Industries Inc (NYSE:MHK) which was down 23.86% to 115.03 in late trade, Western Digital Corporation (NASDAQ:WDC) which lost 18.18% to settle at 44.19 and Fortune Brands Home & Security Inc (NYSE:FBHS) which was down 11.10% to 41.58 at the close.
The top performers on the NASDAQ Composite were Yulong Eco-Materials Ltd (NASDAQ:YECO) which rose 66.20% to 7.180, China Recycling Energy Corp (NASDAQ:CREG) which was up 19.55% to settle at 1.5900 and MYnd Analytics Inc (NASDAQ:MYND) which gained 24.09% to close at 1.70.
The worst performers were Synergy Pharmaceuticals Inc (NASDAQ:SGYP) which was down 69.29% to 0.430 in late trade, Flex Ltd (NASDAQ:FLEX) which lost 35.01% to settle at 7.09 and MoSys Inc (NASDAQ:MOSY) which was down 30.50% to 0.2648 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2216 to 858 and 79 ended unchanged; on the Nasdaq Stock Exchange, 1767 fell and 880 advanced, while 82 ended unchanged.
Shares in Mohawk Industries Inc (NYSE:MHK) fell to 5-year lows; losing 23.86% or 36.04 to 115.03. Shares in Western Digital Corporation (NASDAQ:WDC) fell to 52-week lows; losing 18.18% or 9.82 to 44.19. Shares in Fortune Brands Home & Security Inc (NYSE:FBHS) fell to 3-years lows; losing 11.10% or 5.19 to 41.58. Shares in Synergy Pharmaceuticals Inc (NASDAQ:SGYP) fell to all time lows; down 69.29% or 0.970 to 0.430. Shares in Flex Ltd (NASDAQ:FLEX) fell to 5-year lows; losing 35.01% or 3.82 to 7.09.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.25% to 24.16.
Gold Futures for December delivery was up 0.59% or 7.20 to $1236.30 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December rose 0.50% or 0.34 to hit $67.67 a barrel, while the December Brent oil contract rose 1.08% or 0.83 to trade at $77.72 a barrel.
EUR/USD was up 0.30% to 1.1408, while USD/JPY fell 0.54% to 111.81.
The US Dollar Index Futures was down 0.35% at 96.12.
See also:
Stocks – Dow Falls Nearly 300 Points as Red October Continues
Canada stocks lower at close of trade; S&P/TSX Composite down 0.37%
Mexico stocks lower at close of trade; S&P/BMV IPC down 0.84%
Peru stocks lower at close of trade; S&P Lima General down 0.89%
S&P 500 ends at lowest since May as tech, internet stocks tumble (Reuters)
The dollar languished near session lows, pressured by falling U.S. bond yields as analysts downplayed the strong third-quarter U.S. economic growth Friday, warning the “sugar-high” economy was set for a bumpy road.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.25% to 96.
Gross domestic product increased at a 3.5% annual rate in the July-September period, the Commerce Department said in its preliminary estimate on Friday, topping economists’ estimates for a 3.3% increase.
U.S. bond yields fell following the report, pressuring the dollar, as a deeper look into the report signaled growth could be set for bumpy road ahead as the tailwinds from President Donald Trump’s tax cuts wear off.
BNP Paribas (PA:BNPP) said that disappointing business investment suggested:
“[T]he boost in capex from tax cuts and deregulation was likely front-loaded and fading quickly. We continue to expect growth to slow from here as the sugar high in consumer spending turns into a sugar low.”
The dollar was also held back by a rebound in both sterling and the euro from session lows.
GBP/USD rose 0.12% $1.2833 from a fresh two-month low of $1.2778. The early-session pressure in the pound was attributed to growing doubts about whether the UK and the European Union can reach a consensus on a Brexit deal, amid divisions within UK Prime Minister Theresa May’s Conservatives Party concerning the best approach to restart Brexit talks. ING said:
“Politics at home the biggest stumbling block for the pound. Until this is resolved, we expect GBP/USD to trade below $1.30.”
EUR/USD rose 0.18% to $1.1385 from a session low of $1.1336.
A rout in global markets in the wake of weak quarterly earnings from major U.S. corporates propped up demand for safe-haven yen, keeping a lid on gains in the greenback.
USD/JPY fell 0.35% to Y112.05.
USD/CAD rose just 0.08% to C$1.3083 as rising oil prices firmed up the loonie, weighing on the pairing.
See also:
- Exclusive: Guarding stability, China likely to slow yuan’s slide to 7 per dollar – sources (Reuters)
Gold hit a three-month high and notched a fourth-straight weekly gain on Friday for its best winning streak since last Christmas into January, as a global rout in equities helped the yellow metal retain its steady and slow climb.
Both spot and futures prices of bullion were also on track to their best monthly gains since January, despite a sharp rally in the dollar this month amid the specter of higher U.S. interest rates. Investors typically view gold as a contrarian bet to the dollar.
U.S. gold futures for December settled at $1,235.80 a troy ounce, up 0.3% on the day and nearly 1% on the week, data from the COMEX division of the New York Mercantile Exchange showed.
The session peak, according to Investing.com data, was $1,246, which would mark a high since July 8.
The month-to-date gain was about 4%, the highest since January.
Friday’s gains in gold were helped by weakness on Wall Street and global equity markets, which were in for their longest losing streak in five years. A softer dollar also lured investors towards bullion.
While the dollar Index, which measures the greenback against a basket of six currencies, was down 0.4% on the day, it was up nearly 1.5% month to date, more than the advance in gold. That made bullion’s rally in October even more remarkable, say long-time watchers of the inverse relationship between the two.
Walter Pehowich, executive president at Dillon Gage Metals in Addison, Texas, asked in his daily outlook on the yellow metal:
“The question now on my mind is ‘Is there starting to be a disconnect on the dollar index and the gold price?’ Are the continued geopolitical risk-taking and significant stock market volatility taking a toll on global equities? Are the continued trade wars a factor? Also in a normal market higher interest rates should have put significant pressure on the price of gold and that hasn’t happened.”
While geopolitical tensions such as Saudi Arabia’s crisis over the killing of journalist Jamal Khashoggi and the possibility of a Democratic House win in the U.S. midterm elections in November had reestablished bullion as a safe haven of choice, there was also support for gold from ramping Treasury yields and the likelihood of a continued selloff in equities, he said.
In other precious metals trading on COMEX, silver futures gained 0.7% to $14.71 a troy ounce by 2:36 PM ET (18:36 GMT).
Palladium futures rose 0.4% to $1,092.20 an ounce, while sister metal platinum rose 0.5% to $836.00.
Among base metals, COMEX copper rose 0.2% to $2.744 a pound.
See also:
The global rout in equities is continuing to punish oil bulls, so much so that many may even doubt the non-correlation between stocks and commodities exists.
Despite a slight gain on the day, crude futures in both New York and London fell as much as 3% on the week for their third-straight weekly loss. The last time oil saw such a bearish trend was between the final weeks of July to mid-August. From there, it took off into one of its most bullish periods for this year, hitting four-year highs, before the rally came to a sudden halt earlier this month.
In Friday’s session, oil’s rebound was limited by the weakness on Wall Street and global equity markets, which posted their longest losing streak in five years.
U.S. WTI settled up 26 cents at $67.58 per barrel, rebounding from a session low of $66.19. It fell 2.2% on the week.
U.K. Brent, the international benchmark for oil, was up 70 cents, or almost 1 %, at $77.59. For the week, it lost 2.8%.
In theory, oil and other commodities should rise when stock markets fall as these are supposed to be real assets with intrinsic value that are non-correlated to equities, providing diversified portfolios a hedge when stock valuations are down. In reality, commodities and equities have often moved together when there’s a flight from risk, with gold often being the exceptional safe haven of choice.
Scott Shelton, broker at ICAP (LON:NXGN) in Durham, North Carolina, said, referring to the Valuation of Risk, a model used to calculate maximum daily risk in the trading of a commodity:
“Until the equity markets calm down and VAR is reduced … it’s my belief that the (oil) market remains in liquidation mode. VAR has exploded and has forced Commodity Trading Advisers and traders to reduce the popular positions in the market with Brent longs, Brent spreads and Short WTI/Brent Boxes all suffering because of it,. I would think a CTA that has a diversified portfolio is also reducing length in oil as their risk had likely exploded and they need to reduce positions.”
Aside from the gloom lent by equities, traders said sentiment in oil was also being affected by mixed signals from Saudi Arabia and OPEC on whether production cuts would occur before the end of the year.
OPEC signaled on Thursday it may have to return to production cuts as global inventories begin climbing, a move that could further sour its relations with President Donald Trump. Trump has repeatedly lashed out at the producer group, accusing it of undersupplying the world in order to keep crude prices high.
Saudi OPEC governor Adeeb Al-Aama indicated in an interview with Reuters on Thursday that production cuts may happen before year-end. But Saudi Energy Minister Khalid al-Falih said earlier this week the the kingdom will pump as much crude as necessary to ensure minimum disruption to global supplies from U.S. sanctions on Iranian oil exports beginning Nov. 4.
Some traders saw the Saudi uncertainty as an indication of its dilemma: Cut production and save oil prices from falling further, or submit to Trump’s demands for higher output and let the market slump in the hope of escaping potential US sanctions over murder of the journalist Jamal Khashoggi.
See also:
Natural Gas (FXEmpire)
Natural gas prices rebounded from the lows of the session, and finished down approximately 1.1%. Colder than normal weather is forecast to cover most of the US for the next 2-weeks putting a bid under prices. Net injections are lower than the 5-year average.
Technical Analysis
Natural gas prices rebounded from session lows, as traders took profits on short trades ahead of the weekend. Prices bounded near the 3.10 with additional support seen near the 50-day moving average at 3.02. Resistance is seen near the 10-day moving average at 3.21. Momentum is negative as the MACD (moving average convergence divergence) histogram prints in the red with a downward sloping trajectory which points to lower prices.
The EIA reported on Thursday that net injections fall lower than the five-year average. Net injections into storage totaled 58 Bcf for the week ending October 19, compared with the five-year average net injections of 77 Bcf and last year’s net injections of 63 Bcf during the same week. Working gas stocks totaled 3,095 Bcf, which is 624 Bcf lower than the five-year average and 606 Bcf lower than last year at this time.
Additionally, a reclassification of working gas stocks during the report week reduces weekly net change. Non-flow-related adjustments decreased working gas stocks by approximately 5 Bcf in the South Central nonsalt region for the report week. As a result, the weekly net change understates the volume of natural gas that was injected into working gas. The implied flow for the week is an injection of 63 Bcf to working gas stocks.
Working gas stocks’ deficit to the five-year average increases, and the deficit to the bottom of the five-year range also increases. The average rate of net injections into storage is 14% lower than the five-year average so far in this refill season. If the rate of injections into storage matched the five-year average of 8 Bcf/day for the remainder of the refill season, total inventories will be 3,191 Bcf on October 31, which is 624 Bcf lower than the five-year average of 3,815 Bcf for that time of year.
.
