Written by Investing.com Staff, Investing.com
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.94%
U.S. stocks were lower after the close on Friday, as losses in the Basic Materials, Industrials and Healthcare sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average declined 0.94%, while the S&P 500 index lost 0.54%, and the NASDAQ Composite index lost 0.54%.
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The best performers of the session on the Dow Jones Industrial Average were Verizon Communications Inc (NYSE:VZ), which rose 0.84% or 0.50 points to trade at 59.94 at the close. Meanwhile, United Technologies Corporation (NYSE:UTX) added 0.40% or 0.63 points to end at 156.83 and Coca-Cola Company (NYSE:KO) was up 0.34% or 0.20 points to 59.19 in late trade.
The worst performers of the session were Caterpillar Inc (NYSE:CAT), which fell 2.83% or 3.88 points to trade at 133.37 at the close. Dow Inc (NYSE:DOW) declined 2.38% or 1.17 points to end at 48.03 and 3M Company (NYSE:MMM) was down 1.73% or 2.81 points to 160.08.
The top performers on the S&P 500 were NortonLifeLock Inc (NASDAQ:NLOK) which rose 12.04% to 19.73, National Oilwell Varco Inc (NYSE:NOV) which was up 10.46% to settle at 24.18 and AbbVie Inc (NYSE:ABBV) which gained 5.86% to close at 92.29.
The worst performers were Take-Two Interactive Software Inc (NASDAQ:TTWO) which was down 11.85% to 112.60 in late trade, Fleetcor Technologies Inc (NYSE:FLT) which lost 6.72% to settle at 306.76 and Macerich Company (NYSE:MAC) which was down 6.26% to 23.36 at the close.
The top performers on the NASDAQ Composite were LightPath Technologies Inc (NASDAQ:LPTH) which rose 51.28% to 1.1800, Assertio Therapeutics Inc (NASDAQ:ASRT) which was up 46.15% to settle at 1.520 and Benitec Biopharma Ltd ADR (NASDAQ:BNTC) which gained 39.20% to close at 7.44.
The worst performers were Flex Pharma Inc (NASDAQ:SLRX) which was down 58.05% to 0.835 in late trade, Zogenix Inc (NASDAQ:ZGNX) which lost 38.96% to settle at 32.12 and Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP) which was down 38.85% to 0.532 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1881 to 895 and 90 ended unchanged; on the Nasdaq Stock Exchange, 1828 fell and 811 advanced, while 75 ended unchanged.
Shares in AbbVie Inc (NYSE:ABBV) rose to 52-week highs; up 5.86% or 5.11 to 92.29. Shares in United Technologies Corporation (NYSE:UTX) rose to all time highs; rising 0.40% or 0.63 to 156.83. Shares in Coca-Cola Company (NYSE:KO) rose to all time highs; gaining 0.34% or 0.20 to 59.19. Shares in Flex Pharma Inc (NASDAQ:SLRX) fell to all time lows; down 58.05% or 1.155 to 0.835. Shares in Zogenix Inc (NASDAQ:ZGNX) fell to 52-week lows; losing 38.96% or 20.50 to 32.12. Shares in Benitec Biopharma Ltd ADR (NASDAQ:BNTC) rose to 3-years highs; rising 39.20% or 2.10 to 7.44.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 3.41% to 15.47.
Gold Futures for April delivery was up 0.25% or 3.90 to $1573.90 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in March fell 1.16% or 0.59 to hit $50.36 a barrel, while the April Brent oil contract fell 0.87% or 0.48 to trade at $54.45 a barrel.
EUR/USD was down 0.31% to 1.0946, while USD/JPY fell 0.22% to 109.75.
The US Dollar Index Futures was up 0.22% at 98.593.
See also:
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Stocks – Uber, Pinterest Surge in Premarket; Credit Suisse Falls
The U.S. dollar edged higher Friday, shrugging off expectations that a continued slowdown in U.S. wages will weigh on the pace of inflation and keep interest rates lower for longer.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.18% to 98.55.
The U.S. created 225,000 jobs last month, well above the economists’ consensus forecast of 160,000.
The unemployment rate, however, unexpectedly ticked up to 3.6%, and average hourly earnings slowed to a pace of 0.2% form 0.3%, missing expectations of 0.3%. The annual pace of the wage growth of 3.1% topped economists’ forecasts.
The increase in job gains last month indicates the economy remains in a “good place“, but the softer wage print and upside surprise in joblessness “will only reinforce concerns about inflation staying below the target,” Bank of Montreal said in a note.
The dollar’s advance, however, was kept in check by a climb in safe-haven currencies as the risk-on rally seen this week took a breather after fresh coronavirus fears emerged.
USD/JPY fell 0.24% to Y109.73. as ongoing fears that the U.K. and EU are set for rocky Brexit trade talks in the coming months. UniCredit said:
“Sterling’s decline in reaction to the U.K.’s clash with the EU over a trade deal this week could be a sign of things to come for the currency.”
U.K. Prime Minister Boris Johnson said earlier this week that he was unwilling to accept the EU’s request to sign up to its rules in any potential trade deal.
EUR/USD fell 0.29% to $1.0948 and USD/CAD added 0.13% to C$1.3301, with downside momentum in the loonie limited by stronger Canadian manufacturing data.
See also:
- Forex – Pound on Back Foot as Traders Fear Rocky Brexit Trade Talks Ahead
- Forex – Dollar Slips as Chinese Tariff Cut Prompts Modest Risk-On Move
- Forex – U.S. Dollar Steady Amid Positive Data; AUD/USD Rises Despite Virus Worries
Gold prices held rock-steady above the $1,500 level critical to market longs as futures of the yellow metal posted the first weekly loss in seven on Friday after profit-taking on the recent run-up fueled by the coronavirus scare.
Gold futures for April delivery on New York’s COMEX settled up $3.40, or 0.2%, at $1,573.40 per ounce, gaining for a third day in a row. But on a weekly basis, April gold fell 0.6%, the first time it has slid in a week since mid-December, Investing.com data showed. The drop came at the end of a relatively choppy week in gold as some investors took profit on recent gains after the global scare over the coronavirus eased somewhat.
Spot gold, which tracks live trades in bullion, was up $5.62, or 0.4%, at $1,572.18 by 2:40 PM ET (19:40 GMT). On a weekly basis, the bullion indicator was down 1.1%, its first slide in three weeks.
Gold’s weekly loss was mitigated by a drop in U.S. stock markets, which ignored a bullish U.S. jobs report on Friday to tumble over lingering concerns about China’s struggle to contain the viral pandemic that has already killed more than 630 people and infected 31,000 more in the world’s second-largest economy.
George Gero, precious-metals analyst at RBC Wealth Management in New York, said:
“Gold is still a hedge for political, economic and stock-market headlines that can cause quick reversals. Expect the $1,550-$1,600 trading range in gold to continue.”
Gold prices came within striking range this week of the $1,600 level as investors initially piled into the yellow metal for a hedge against the weakness in global markets.
See also:
- Gold Ends the Week Broadly Flat After Jobs Report Fails to Inpire
- Gold Prices Slip Ahead of U.S. Key Data, But Virus Concerns Remain
OPEC is learning that the Russians, and not the Saudis, might be the real power at the cartel. Oil prices posted a fifth-straight weekly loss after Moscow said it needed more time to consider deeper production cuts proposed by OPEC to deal with the collapse in energy demand from the coronavirus crisis.
Brent, the London-traded benchmark for crude oil, settled down 46 cents, or 0.9%, at $54.47 per barrel on Friday after Russian Energy Minister Alexander Novak stalled in giving his government’s assent to suggestions from OPEC’s suggestion that the group and its allies, which include Moscow, cut an additional 600,000 barrels per day in supply.
New York-traded West Texas Intermediate, U.S. crude benchmark, settled down 63 cents, or 1.2%, at $50.32
For the week, Brent fell 6.3% and WTI 2.4%. Combined losses over five weeks stood at more than 22% for both benchmarks, leaving them in bear market territory.
“Oil prices can’t shake off the coronavirus,” Phil Flynn, senior market analyst for energy at the Price Futures Group in Chicago, said.
, Flynn said that, even as OPEC struggles to find a way to support the market from collapse:
“Conflicting reports about how well the virus is being contained is raising fears about economic growth.”
Novak said Russia needed more time to decide whether to join any additional oil output cuts by OPEC because, in his opinion, U.S. crude production growth could slow while global demand remains solid.
OPEC has committed to cut as much as 2.1 million barrels per day, or about 2.1% of global demand, this quarter even before the coronavirus outbreak, which has killed more than 630 people and infected another 31,000 in China while spreading to at least 25 countries.
While Saudi Arabia officially leads the 13-member OPEC, Russia’s clout as an ally of the group has grown immensely in recent years, given Moscow’s higher output of crude. While the United States is the world’s number-one producer of oil, the independent structure of U.S. drillers prevents the country from participating in any OPEC cuts, leaving the cartel at the mercy of Russian cooperation.
Despite Novak’s optimism about the current demand for oil, most analysts say refinery demand for crude and airlines’ consumption of jet fuel are falling by hundreds of thousands of barrels per day due to the impact of the coronavirus crisis, particularly from top energy user China.
To make matters worse for market sentiment, U.S. Energy Secretary Dan Brouillette said on Friday the country’s current record production of 13 million bpd could reach as high 15-to-16 million bpd in coming years.
See also:
- Crude Oil Falls Amid Precarious Demand/Supply Balance
- Oil Prices Gain but Set to Record Fifth Straight Weekly Loss
Natural Gas (CNBC)
Key points:
- “Honestly speaking, if I have one wish for free, please send me an ice blizzard for the gas prices,” Rainer Seele, CEO of OMV, told CNBC’s “Squawk Box Europe” on Thursday.
- Natural gas prices are almost 30% below where they traded a year earlier – and down nearly 15% since the start of 2020.
- In Asia, the benchmark Japan-Korea-Marker (JKM) spot price for liquefied natural gas (LNG) closed at an all-time low of $3.00 MMBtu for the second consecutive session on Thursday, according to data provided by S&P Global Platts.
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