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 Technology, Healthcare and Utilities sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average lost 0.43%, while the S&P 500 index lost 0.63%, and the NASDAQ Composite index fell 1.04%.
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The best performers of the session on the Dow Jones Industrial Average wereChevron Corp (NYSE:CVX), which rose 3.20% or 3.56 points to trade at 114.73 at the close. Meanwhile, Exxon Mobil Corp (NYSE:XOM) added 1.59% or 1.28 points to end at 81.95 and Goldman Sachs Group Inc (NYSE:GS) was up 1.20% or 2.72 points to 229.69 in late trade.
The worst performers of the session were Apple Inc (NASDAQ:AAPL), which fell 6.63% or 14.74 points to trade at 207.48 at the close. Intel Corporation (NASDAQ:INTC) declined 2.30% or 1.11 points to end at 47.11 and Pfizer Inc (NYSE:PFE) was down 1.69% or 0.74 points to 42.93.
The top performers on the S&P 500 were VeriSign Inc (NASDAQ:VRSN) which rose 17.20% to 165.02, Newell Brands Inc (NYSE:NWL) which was up 14.74% to settle at 18.99 and Starbucks Corporation (NASDAQ:SBUX) which gained 9.70% to close at 64.32.
The worst performers were Kraft Heinz Co (NASDAQ:KHC) which was down 9.73% to 50.73 in late trade, Synchrony Financial (NYSE:SYF) which lost 9.58% to settle at 26.43 and Stericycle Inc (NASDAQ:SRCL) which was down 6.83% to 47.31 at the close.
The top performers on the NASDAQ Composite were Pacific Biosciences of California (NASDAQ:PACB) which rose 67.63% to 7.560, Shineco Inc (NASDAQ:TYHT) which was up 29.44% to settle at 1.02 and China Internet Nationwide Financial Services Inc (NASDAQ:CIFS) which gained 28.92% to close at 2.14.
The worst performers were Puma Biotechnology Inc (NASDAQ:PBYI) which was down 48.01% to 20.07 in late trade, Trevena Inc (NASDAQ:TRVN) which lost 32.39% to settle at 0.71 and Inpixon (NASDAQ:INPX) which was down 32.03% to 5.0300 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1724 to 1333 and 88 ended unchanged; on the Nasdaq Stock Exchange, 1392 rose and 1253 declined, while 76 ended unchanged.
Shares in VeriSign Inc (NASDAQ:VRSN) rose to 5-year highs; up 17.20% or 24.22 to 165.02. Shares in Kraft Heinz Co (NASDAQ:KHC) fell to 5-year lows; falling 9.73% or 5.47 to 50.73. Shares in Synchrony Financial (NYSE:SYF) fell to 52-week lows; falling 9.58% or 2.80 to 26.43. Shares in Starbucks Corporation (NASDAQ:SBUX) rose to 52-week highs; rising 9.70% or 5.69 to 64.32.
Shares in Stericycle Inc (NASDAQ:SRCL) fell to 5-year lows; losing 6.83% or 3.47 to 47.31. Shares in Pacific Biosciences of California (NASDAQ:PACB) rose to 52-week highs; up 67.63% or 3.050 to 7.560. Shares in Puma Biotechnology Inc (NASDAQ:PBYI) fell to 5-year lows; losing 48.01% or 18.53 to 20.07. Shares in Trevena Inc (NASDAQ:TRVN) fell to all time lows; down 32.39% or 0.34 to 0.71.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 0.88% to 19.51.
Gold Futures for December delivery was down 0.11% or 1.30 to $1234.70 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in December fell 1.11% or 0.71 to hit $62.98 a barrel, while the January Brent oil contract fell 0.29% or 0.21 to trade at $72.68 a barrel.
EUR/USD was down 0.11% to 1.1395, while USD/JPY rose 0.43% to 113.20.
The US Dollar Index Futures was up 0.20% at 96.27.
See also:
Canada stocks lower at close of trade; S&P/TSX Composite down 0.40
S&P 500 ends at lowest since May as tech, internet stocks tumble (Reuters)
Stocks Bounce Back From Deeply Oversold Levels (Equities.com)
The dollar rose against its rivals Thursday after data showed the U.S. economy created more jobs than expected last month, strengthening the Federal Reserve’s case to continue gradually raising rates.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.31% to 96.57.
The Labor Department said Friday nonfarm payroll employment increased by 250,000 jobs in October, beating economists’ estimates for 193,000 new jobs. While the unemployment rate was unchanged at 3.7%.
Average hourly earnings rose 0.2% month on month and 3.1% for the year through October, in line with economists’ forecasts.
The better-than-expected jobs data keeps the Fed on track for another hike in December, leading to a tightening cycle that could slightly overshoot the neutral rate over time, TD Securities said, adding:
“The data offers a boost to the dollar, though we think markets will be cautious to push this narrative with positioning stretched and event risk related to the US mid-terms next week.”
The dollar held firm against safe-haven yen despite a selloff on Wall Street as investors fretted about U.S.-China trade tensions. White House economic advisor Larry Kudlow refuted reports that President Donald Trump had asked his Cabinet to put together a trade deal with China.
USD/JPY rose 0.39% to Y113.16.
GBP/USD fell 0.43% to $1.2957, but remained on course for its best week since March on the back of a strong rise Thursday, when the Bank of England signaled more interest rate hikes could be on cards if Britain’s exit from the European Union is smooth.
USD/CAD, meanwhile, rose 0.18% to C$1.3109 as slump in oil prices and soft jobs data from Canada kept a lid on the oil-price-sensitive loonie.
EUR/USD fell 0.20% to $1.1385
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An anemic Wall Street remains gold’s best hopes for a rally toward $1,300, although heightened trade war rhetoric and a potential Democratic victory in the U.S. midterm elections could also be drivers for the yellow metal, which on Friday posted a fifth-straight week of gains.
Comex gold for December delivery settled the day down $5.30, or 0.4%, at $1,233.30 a troy ounce. For the week, the contract was marginally higher, rising 0.1%.
The dollar , a contrarian bet to gold, gained 0.3%, weighing on the precious metal.
Since Sept. 21, gold has ended each week higher, posting a cumulative 3.5% gain for the past five weeks.
Despite the threat of higher interest rates, with the Federal Reserve signaling this year’s fourth hike in December, gold has managed to stay above the $1,200 level that’s critically important for the psyche of market bulls.
October’s rout in U.S. and global stocks and the on-again-off-again trade talks with China have bolstered the yellow metal’s appeal as a safe haven, analysts say.
“I think those are the main things that will get us to the next price level – a weak Wall Street and the U.S. China rhetoric.”
U.S. stocks extended their fall on Friday, as trade optimism faded after White House economic adviser Larry Kudlow said President Donald Trump has not asked U.S. officials to draw up a proposed trade plan for China.
Some investors are also getting into gold as a hedge against a possible Democratic victory in U.S. midterm elections next Tuesday. Such a setback for the Republicans could place severe challenges to president Trump’s remaining tenure in office. xWalter Pehowich, executive vice president at Dillon Gage Metals in Addison, Texas said:
“A Democratic win, to me, could be the biggest driver of gold that few have been hedging for.”
In other precious metals trading on COMEX, silver futures rose 3.7% to $14.75 a troy ounce by 3:26 PM ET (19:26 GMT).
Palladium rose 1.6% to $1,098.70 an ounce, while sister metal platinum traded up 1.2% to $873.30.
Among base metals, COMEX copper climbed 2.2% to $2.72 a pound.
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The Trump Administration seems to be achieving its tri-fold agenda of punishing Iran while balancing the world’s energy needs and keeping oil prices low, as crude markets posted on Friday their largest weekly loss since February.
Eight countries, including Japan, India, South Korea and China, will be given waivers to continue importing oil from Tehran once export sanctions against the Islamic Republic start this weekend, Bloomberg reported. Secretary of State Michael Pompeo confirmed that it will be eight nations, but added that details will be announced on Monday.
Crude oil markets fell further on the news, adding to Thursday’s 3% drop and losses since Monday that culminated in their worst week since February.
U.S. WTI settled down 55 cents lower at $63.14 per barrel. For the week, it lost 6.6%.
U.K.Brent crude, the international benchmark for oil, was down 11 cents at $72.78 by 2:42 PM ET (18:42 GMT). Like WTI, it was also off 6.6% on the week.
Data showing the first weekly drop in four for the U.S. oil rig count didn’t help, with just one rig reported off for this week.
Just a month ago, Brent hit four-year highs above $86 and WTI scaled 2014 peaks of nearly $77. But all that changed in October, with U.S. crude losing 11% and the U.K. benchmark 9%, their most since July 2016.
President Donald Trump has vowed to bring Iran’s crude exports to zero since he canceled an Obama-era deal with Tehran in 2015 that allowed the third-largest exporter in OPEC to continue its oil sales to the world in exchange for curbs on its nuclear program.
But the Trump administration is also aware that choking off about 2 million barrels per day (bpd) of exports averaged by Iran without alternatives will only send oil prices rallying again, as they did in the third quarter. High oil prices could be a problem for the president and his Republican colleagues in U.S. midterm elections due next Tuesday.
Saudi Arabia, OPEC’s top exporter, has said lately that it will pump as much as necessary to keep markets supplied and Russia, another major oil producer, has also said there will be no squeeze. The United States, which basically flooded the world with cheap crude in three previous years, causing a glut, is again ramping up production, reaching a record high of 11.346 million bpd in August.
With the selloff in oil not appearing to be over, some traders think WTI could break below $60 and Brent under $70. Just a month ago, many thought Brent was on track to hit $100 as a momentum-driven rally took oil the other way.
But Wall Street bank Goldman Sachs (NYSE:GS), an influential voice in energy markets, said it expects Brent to return to its target of $80 per barrel by year end. Goldman said, commenting ahead of Friday’s news:
“The granting of waivers does not imply that Iran exports will stabilize near current levels As a result, we still expect that the global oil market will be in deficit in 4Q18, leading to a strengthening in Brent timespreads We expect this steeper backwardation to drive spot prices higher to our year-end $80 per barrel forecast, with low positioning also pointing to price upside in the short-term.”
See also:
- Oil Prices Fall Despite Pompeo’s Remarks That Wavers on Iran Sanctions Temporary
- Oil drops 1 percent as U.S. allows Iran sanctions waivers (Reuters)
Natural Gas (FXEmpire)
The natural gas markets initially gapped lower to kick off the week, then rallied significantly, only to sell off drastically. This tells me that there is still significant resistance above. With that in mind, I think that the overall pressure above is starting to get to this market.
Natural gas markets initially gapped lower to kick off the week, turned around to reach towards the $3.35 level, and then rolled over to form a massive shooting star. That in and of itself is a negative sign, but the fact that we are closing below the $3.25 level is also rather negative. With that in mind, if we break down below the bottom of the candle stick for the week, I think that opens the floodgates to lower pricing, perhaps reaching down to the $3.10 level initially, followed by the $3 level. That of course would be a significantly bearish move, especially considering that we are trading winter contracts, and if we can keep gains here, when can we?
Rallies at this point in time should be selling opportunities, especially closer to the $3.35 level. Longer-term, I believe that this market will continue to fall based upon the potential warmer winter that the Americans may be seeing. Beyond that, inventory isn’t being drawn down at the rate that a lot of traders like to see and the seasonality of bullish pressure may be coming to an end rather abruptly. Will have to wait and see but at this point I think the market is most comfortable falling and therefore you should not fight that type of move. Revisiting this at the close of next week’s candle is probably the best way to go if you are looking for a buying opportunity but we would need to see either a very strong green candle or some type of hammer.
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