Written by Investing.com Staff, Investing.com
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 1.81%
U.S. stocks were lower after the close on Friday, as losses in the Technology, Consumer Services and Industrials sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average fell 1.81% to hit a new 52-week low, while the S&P 500 index declined 2.06%, and the NASDAQ Compositeindex lost 2.99%.
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The best performers of the session on the Dow Jones Industrial Average were NikeInc (NYSE:NKE), which rose 7.17% or 4.84 points to trade at 72.37 at the close. Meanwhile, McDonald’s Corporation (NYSE:MCD) added 0.27% or 0.47 points to end at 174.15 and Coca-Cola Company (NYSE:KO) was up 0.06% or 0.03 points to 47.57 in late trade.
The worst performers of the session were Goldman Sachs Group Inc (NYSE:GS), which fell 4.96% or 8.36 points to trade at 160.05 at the close. American ExpressCompany (NYSE:AXP) declined 4.64% or 4.44 points to end at 91.33 and Apple Inc (NASDAQ:AAPL) was down 3.89% or 6.10 points to 150.73.
The top performers on the S&P 500 were Nike Inc (NYSE:NKE) which rose 7.17% to 72.37, CarMax Inc (NYSE:KMX) which was up 3.95% to settle at 58.96 and Chesapeake Energy Corporation (NYSE:CHK) which gained 3.26% to close at 1.900.
The worst performers were Perrigo Co (NYSE:PRGO) which was down 29.28% to 37.03 in late trade, ConAgra Foods Inc (NYSE:CAG) which lost 8.77% to settle at 22.15 and Alexion Pharmaceuticals Inc (NASDAQ:ALXN) which was down 6.51% to 94.63 at the close.
The top performers on the NASDAQ Composite were Micronet Enertec Technologies Inc (NASDAQ:MICT) which rose 183.83% to 0.860, Obalon Therapeutics Inc(NASDAQ:OBLN) which was up 61.59% to settle at 2.65 and Smaaash Entertainment Inc (NASDAQ:SMSH) which gained 45.77% to close at 2.32.
The worst performers were Applied DNA Sciences Inc (NASDAQ:APDN) which was down 48.60% to 0.360 in late trade, Vascular Biogenics Ltd (NASDAQ:VBLT) which lost 41.18% to settle at 0.600 and Nova Lifestyle I (NASDAQ:NVFY) which was down 40.26% to 0.460 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 2413 to 680 and 67 ended unchanged; on the Nasdaq Stock Exchange, 2092 fell and 571 advanced, while 66 ended unchanged.
Shares in Perrigo Co (NYSE:PRGO) fell to 5-year lows; losing 29.28% or 15.33 to 37.03. Shares in ConAgra Foods Inc (NYSE:CAG) fell to 5-year lows; down 8.77% or 2.13 to 22.15. Shares in Alexion Pharmaceuticals Inc (NASDAQ:ALXN) fell to 5-year lows; falling 6.51% or 6.59 to 94.63. Shares in Goldman Sachs Group Inc (NYSE:GS) fell to 52-week lows; falling 4.96% or 8.36 to 160.05. Shares in Apple Inc (NASDAQ:AAPL) fell to 52-week lows; down 3.89% or 6.10 to 150.73. Shares in Applied DNA Sciences Inc (NASDAQ:APDN) fell to all time lows; losing 48.60% or 0.340 to 0.360. Shares in Vascular Biogenics Ltd (NASDAQ:VBLT) fell to all time lows; losing 41.18% or 0.420 to 0.600. Shares in Nova Lifestyle I (NASDAQ:NVFY) fell to 52-week lows; losing 40.26% or 0.310 to 0.460.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 6.10% to 30.11 a new 6-months high.
Gold Futures for February delivery was down 0.73% or 9.30 to $1258.60 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 1.07% or 0.49 to hit $45.39 a barrel, while the February Brent oil contract fell 1.56% or 0.85 to trade at $53.50 a barrel.
EUR/USD was down 0.75% to 1.1360, while USD/JPY rose 0.03% to 111.31.
The US Dollar Index Futures was up 0.84% at 96.532.
See also:
Stocks – Dow Ends Brutal Week Deeply in Red Amid Government Shutdown Fears
Mexico stocks lower at close of trade; S&P/BMV IPC down 0.55%
Canada stocks lower at close of trade; S&P/TSX Composite down 1.35%
Canada stocks lower at close of trade; S&P/TSX Composite down 1.35%
The Dow Had Its Worst Week in 10 Years. Here’s How the Grinch Stole the ‘Santa Claus Rally’ (Fortune)
The U.S. dollar was set for a weekly losses against its rivals despite a surge on Friday as traders mulled over the prospect of a U.S. government shutdown.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.70% to 96.95.
U.S. President Donald Trump on Friday threatened a “very long” government shutdown ahead of a midnight deadline, if the Senate fails to pass spending legislation that includes $5 billion in funding for his border wall.
The strong gains for the dollar come even as a bevy mostly negative U.S. economy fuelled some concerns about economic growth.
Gross domestic product increased at a 3.4% annual rate in the July-September period, the Commerce Department said in its final estimate, below a previous estimate of 3.5%.
The Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 1.9% in the 12 months through November.
Core PCE prices were a little weaker-than-expected, suggesting the Fed “can now take a pause in rate hikes in the first quarter without having to worry about inflationary pressures,” CIBC said in a note.
Federal Reserve Chairman Jerome Powell said in a press conference early this week that monetary policy decisions would be data dependent and stressed that rate hikes would be put on ice should inflation fall below the central bank’s 2% target.
The dollar was also helped by a plunge in the euro and weakness in sterling.
EUR/USD fell 0.67% to $1.1369 and GBP/USD fell 0.15% to $1.2639.
USD/CAD rose 0.58% to $1.3589 amid mixed data from Canada as retail sales fell short and GDP growth topped economists’ forecasts.
USD/JPY rose 0.04% to Y111.32.
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Gold fell on Friday, taking a breather after capitalizing on the Fed worrying the stock market earlier in the week. But a second week of gains in three and the potential of more economic troubles ahead is inspiring gold bugs to target the $1,300 level last seen in June.
Walter Pehowich, executive vice president at Dillon Gage Metals and a regular commentator on precious metals, said in an outlook published on Friday:
“Speculators have accumulated some additional long positions and the holders of short positions have started to head for the exits as the market picks up some steam. I believe the price of gold will continue to head higher. But I expect it to trade in a two step forward and one step back process.”
Benchmark COMEX gold futures for February settled down $9.80, or 0.7%, at $1,258.10 per troy ounce, after hitting a six-month high of $1,270.20 in the previous session. For the week it rose 1.4% after a 2% gain two weeks earlier.
The Federal Reserve raised rates as expected by a quarter point at its December meeting Wednesday. But it also sent out confusing signals to the market by lowering its economic forecast for 2019 while hinting it would continue raising rates, only at a slower pace. Most Fed governors said they anticipated only two rate hikes next year, versus previous expectations for three.
But fed funds futures after the rate hike showed traders adding to bets that the central bank will hold on further increases from January. Increasingly, many economists are also talking about the prospects of a global recession. All these could potentially weaken the dollar, adding to gold’s allure.
The dollar index, measured against a basket of currencies, was up 0.8% at 96.52 on Friday. But a day earlier, it hit a two-month low of 95.63, reacting to the speculation of the Fed not raising rates further in 2019.
In the trade of other precious metals on COMEX, silver fell 1.2% to $14.69 per ounce.
Palladium lost 2.8% to $1,159.10 per ounce, while sister metal platinum shed 0.9% to $789.
In base metals, COMEX copper fell 1.1% to $2.71 per pound.
See also:
- Gold futures fall for the session, gain for the week (MarketWatch)
Oil prices fell again on Friday, ending with an 11% weekly loss, the largest in nearly three years. Bears are closing in on what could be their ultimate prize before the New Year, a test of the $40 support level.
A surprise climb in the U.S. rig count, showing a rise in drilling despite the bear market for oil, and a slump on Wall Street on fears of a government shutdown, were all that were needed to seal a fourth day of losses of out five in crude.
U.S. West Texas Intermediate crude settled down 29 cents, or 0.6%, at $45.59 per barrel after plumbing a July 2017 low of $45.13 earlier in the day. For the week, it fell 11%, its steepest weekly fall since January 2016.
U.K. Brent was down 68 cents, or 1.3%, at $53.67 by 3:10 PM ET (20:10 GMT), after making a Sept 2017 low of $52.81 earlier. It was also down about 11% on the week.
Since it broke key technical support at $48 per barrel this week, WTI has been marked for a possible slide to below $40 per barrel before the year end .
With another four sessions left in the coming week, short-sellers could return after the Christmas break to try and tip U.S. crude into the $30s as fears of oversupply continue to rattle the market, particularly after Friday’s data showing 10 rigs being added this week, the most in six weeks.
Dominick Chirichella, director of risk and trading at the Energy Management Institute in New York, wrote on Friday in his final note for the year:
“The end of 2018 could not be more different than the end of 2017. The market has mostly concluded (for now) that the supply cuts from the latest OPEC accord are not likely to be deep enough to quell the surplus with global oil demand expected to slow.”
Saudi-led OPEC and its non-member allies led by Russia pledged two weeks ago to cut a total of 1.2 million barrels per day of supply for six months beginning January to try and restore a global oil market that has been since October.
But crude prices have continued tumbling since the announcement by the enlarged OPEC+ group. Both WTI and Brent have tacked about 15% more in losses over the past two weeks, on track to finish the year about 40% lower.
In an attempt to try and improve their narrative, sources within OPEC released to The Wall Street Journal on Thursday documents revealing Saudi plans to curb its oil output by more than it committed two weeks back. The cartel would also be more transparent about its production going forth, The Journal reported.
Reuters, meanwhile, reported on Friday a letter by OPEC Secretary General Mohammad Barkindo that members should reduce output by 3.02%, higher than the originally agreed 2.5%.
Barkindo reportedly said that member countries would make their quotas public and applauded Saudi Arabia for pledging to reduce output in 10.2 million barrels per day, more than allocated.
The cartel is expected to publish the full list of supply cuts by the end of next week.
None of these have the stopped the bears’ stampede of the market as worries about relentless U.S. production and potential weakening of demand ahead of a possible global recession have had a bigger impact.
Fears of a partial shutdown of the U.S. government from Republicans-Democrats budget impasse over President Donald Trump’s long-standing plans to build a border wall added to the list of negatives on Friday. Phil Flynn, senior market analyst for energy at The Price Futures Group brokerage in Chicago, said:
“A government shutdown is raising fears of a crash, as worried investors scurry to cash.”
See also:
- U.S. oil futures settle at lowest point since July 2017, down 11% for the week (FXStreet)
- U.S. drillers add oil rigs for first week in three: Baker Hughes (Reuters)
Natural Gas (FXEmpire)
Natural gas prices moved higher on Friday, and continues to consolidate after falling from its recent November highs. The weather continues to remain warmer than normal across the east coast and colder than normal across the west. Supply fell in the latest week as imported from Canada dropped 3%. Demand moved lower as warmer than normal weather substantially reduced residential consumption.
Technical Analysis
Natural gas prices rebounded and remain rangebound after finding support near an upward sloping trend line that comes in near 3.51. Resistance is seen near the 10-day moving average at 3.95. Short term momentum has turned positive as the fast stochastic generated a crossover buy signal and has come out of oversold level. Negative momentum has decelerated as the MACD (moving average convergence divergence) histogram prints in the red with a flattening trajectory which points to consolidation.
Supply falls as Imports Decline
The EIA reports that the average total supply of natural gas fell by 1% compared with the previous report week. Dry natural gas production remained constant week over week. Average net imports from Canada decreased by 3% from last week.
Demand Declined on Warm Weather
Demand falls, driven by decline in residential and commercial consumption. Total U.S. consumption of natural gas fell by 16% compared with the previous report week, according to data from the EIA. The largest decrease in consumption came in the residential and commercial sectors, where natural gas use declined by 25% with warmer-than-normal weather across the Lower 48 states. Natural gas consumed for power generation declined by 11% week over week. Industrial sector consumption decreased by 3% week over week. Natural gas exports to Mexico decreased 2%.
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