Written by Investing.com Staff, Investing.com
U.S. stocks lower at close of trade; Dow Jones Industrial Average down 0.78%
U.S. stocks were lower after the close on Friday, as losses in the Technology, Oil & Gas and Consumer Services sectors led shares lower.
At the close in NYSE, the Dow Jones Industrial Average fell 0.78%, while the S&P 500 index declined 1.05%, and the NASDAQ Composite index lost 1.79%.
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The best performers of the session on the Dow Jones Industrial Average were United Technologies Corporation (NYSE:UTX), which rose 1.08% or 1.62 points to trade at 151.52 at the close. Meanwhile, Johnson & Johnson (NYSE:JNJ) added 1.05% or 1.56 points to end at 149.93 and The Travelers Companies Inc (NYSE:TRV) was up 0.88% or 1.18 points to 135.16 in late trade.
The worst performers of the session were Microsoft Corporation (NASDAQ:MSFT), which fell 3.16% or 5.83 points to trade at 178.59 at the close. Apple Inc (NASDAQ:AAPL) declined 2.26% or 7.25 points to end at 313.05 and Nike Inc (NYSE:NKE) was down 2.22% or 2.28 points to 100.25.
The top performers on the S&P 500 were Deere & Company (NYSE:DE) which rose 7.00% to 177.43, Gilead Sciences Inc (NASDAQ:GILD) which was up 4.03% to settle at 69.70 and Mosaic Co (NYSE:MOS) which gained 3.90% to close at 19.19.
The worst performers were Hasbro Inc (NASDAQ:HAS) which was down 9.01% to 89.97 in late trade, Advanced Micro Devices Inc (NASDAQ:AMD) which lost 6.97% to settle at 53.28 and Devon Energy Corporation (NYSE:DVN) which was down 5.33% to 20.97 at the close.
The top performers on the NASDAQ Composite were Tocagen Inc (NASDAQ:TOCA) which rose 111.11% to 1.9000, Trans World Entertainment Corp (NASDAQ:TWMC) which was up 50.86% to settle at 5.280 and Celldex Therapeutics Inc (NASDAQ:CLDX) which gained 35.24% to close at 3.070.
The worst performers were Eyepoint Pharmaceuticals Inc (NASDAQ:EYPT) which was down 25.64% to 1.450 in late trade, Lianluo Smart Ltd (NASDAQ:LLIT) which lost 22.76% to settle at 0.6569 and Appian Corp (NASDAQ:APPN) which was down 22.38% to 48.65 at the close.
Falling stocks outnumbered advancing ones on the New York Stock Exchange by 1909 to 886 and 86 ended unchanged; on the Nasdaq Stock Exchange, 1823 fell and 791 advanced, while 88 ended unchanged.
Shares in Gilead Sciences Inc (NASDAQ:GILD) rose to 52-week highs; gaining 4.03% or 2.70 to 69.70.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 9.77% to 17.08.
Gold Futures for April delivery was up 1.57% or 25.45 to $1645.95 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in April fell 0.82% or 0.44 to hit $53.44 a barrel, while the April Brent oil contract fell 1.45% or 0.86 to trade at $58.45 a barrel.
EUR/USD was up 0.60% to 1.0848, while USD/JPY fell 0.47% to 111.58.
The US Dollar Index Futures was down 0.52% at 99.262.
See also:
Stocks – S&P Posts First Loss in Three Weeks Amid Rout in Chip Stocks
Stocks – Wall Street Set to Snap 2-Week Win Streak as Virus Jitters Return
Stocks – Wall Street Opens Lower as Fed Officials Damp Rate Hopes
The dollar fell sharply Friday, paced by losses against the pound and yen following data showing the key U.S. services sector unexpectedly contracted, signaling potential trouble ahead of the U.S. economy.
The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.57% to 99.57. But the world’s reserve currency remains on track to round off the week at nearly five-months highs.
The IHS Markit flash services sector Purchasing Managers’ Index dropped to 49.4 in February, the lowest in six years, raising concerns about the health of the broader economy as services account for roughly 66% of total growth.
The weakness in manufacturing, continued, showing a weaker-than-expected reading of 50.8.
With signs of potential wobble in the U.S. economy, traders returned to the safe-heaven yen.
USD/JPY fell 0.42% to 111.64.
The pound, meanwhile, woke up from its recent slumber, rising 0.6% against the greenback amid more evidence the U.K. economy is on the mend.
U.K. manufacturing activity topped estimates in February, but services just missed economists’ forecasts for a reading of 53.4, according to data from IHS Markit.
EUR/USD rose 0.68% to $1.0857 as better-than-expected eurozone composite purchasing managers’ index data suggested the economic bloc has shrugged off the impact of the virus so far. UniCredit’s economist Edoardo Campanella said:
“For the time being, domestic demand has been able to counter the initial fallouts due to the coronavirus outbreak, thus removing pressure on the European Central Bank to consider easing measures to support the economy.”
USD/CAD fell 0.35% to C$1.3208, as the loonie rallied on better-than-expected Canadian retail sales data. RBC warned, however,
“economic activity should eventually rebound from temporary factors, but downside surprises are more likely at this stage in the economic cycle.”
See also:
- Forex – Dollar Pulls Back vs Yen, Euro on PMIs
- Forex – U.S. Dollar Slips Amid Renewed Coronavirus Fears; Pound Inches Up
- Forex – Pound Drops as Analyst Cools Hopes of Big U.K Fiscal Stimulus
Gold raced to seven-year highs on Friday, while accruing its biggest weekly gain in four years, as analysts targeted $1,700 as the next resistance for the yellow metal amid the rush into safe havens by investors fearing the coronavirus contagion.
Gold futures for April delivery on New York’s COMEX settled Friday’s trade settled up $28.30, or 1.7%, at $1,648.80 per ounce. The session high of $1,651.85 was the highest since February 2013. For the week, COMEX gold rose 4.2%, its biggest weekly advance since April 2016.
Spot gold, which tracks live trades in bullion was up $24.56, or 1.5%, at $1,643.97 by 2:44 PM ET (19:44 GMT). Bullion earlier rose to a seven-year high of $1,649.04.
This month, bullion and gold futures are up about 4%, similar to how they finished January, and are on track to a third-straight positive month that places them up 8% on the year.
Citigroup (NYSE:C) said that it expects gold to hit $1,700 in the next six to 12 months and $2,000 in the next 12 to 24 months.
Gold will “outperform on a risk market unwind should coronavirus risks impact supply chains and thus U.S. earnings momentum,” Citigroup’s precious metals analysts led by Ed Morse said.
Beijing, which already had a death toll of more than 2,000 and over 45,000 infections from the coronavirus, reported 118 new deaths and 1,109 new cases on Friday. South Korea reported 100 new infections, doubling its cases. In Japan, more than 80 people tested positive for the virus.
Factory activity in Japan also registered its steepest contraction in seven years in February, hurt by fallout from the outbreak.
But more than as a virus hedge, gold was also indicating that the Federal Reserve might cut U.S. rates again, Morse’s team said.
Citigroup (NYSE:C) analysts said:
“With (short-term interest rate) markets pricing in (about) 1.5 Fed cuts in 2020 and global growth risks skewed to the downside, gold is a direct beneficiary of the low nominal and negative real yield environment.”
TD Securities had a similar view – their daily note on precious metals said:
“A portion of the recent surge can surely be attributed to a safe-haven bid, but risk markets have not experienced the pain that typically coincides with a haven bid, suggesting there is more to this rally in safe assets than just the uncertainty driven bid. Gold and rates appear to be telling the Fed they need to cut once again if their inflation goal is to be reached.”
See also:
- Gold Extends 7-Year High as Coronavirus Fears Persist
- Gold Hits New 7-Year High as Virus Prompts More Upgrades
Oil prices fell Friday despite posting a weekly gain as the coronavirus contagion ticked higher and the OPEC-Russia production pact that had supported the market the past four years appeared to be coming to an end.
West Texas Intermediate, the U.S. crude benchmark, settled down 50 cents, or 1%, at $53.38 per barrel. It hit a one-month high of $54.63 in the previous session and ended the week up 2.6%.
Brent, the global benchmark for crude, settled down 81 cents, or 1.4%, at $58.50 per barrel. Brent hit a three-week high of $59.99 on Thursday and finished the week up 2.1%.
Beijing, which already had a death toll of more than 2,000 and more than 45,000 infections from Covid-19, reported 118 new deaths and 1,109 new cases on Friday. South Korea reported 100 new infections, doubling its cases. In Japan, more than 80 people tested positive for the virus.
Factory activity in Japan also registered its steepest contraction in seven years in February, hurt by fallout from the outbreak.
Until Friday, oil prices had risen without a break for more than a week, but the rally was threatened now by the prospect of a falling out between the Saudi-led OPEC and Moscow, which represents the interests of Russia’s state and independent oil producers.
The two sides have collaborated since December 2016 in an effort to balance global oil supply amid a surge of crude from U.S. shale producers.
But at an emergency meeting earlier in February, Russia rejected a Saudi push to deepen the alliance’s existing oil production curbs by 600,000 barrels a day.
The Wall Street Journal reported on Friday that the Saudi kingdom, Kuwait and the United Arab Emirates – which collectively represent over half of OPEC’s production capacity – have decided to go it alone without Russia on the cuts. They are holding talks this week to discuss a possible joint output cut of as much as 300,000 bpd.
Separately, finance leaders from the Group of 20 major economies are due to meet in Saudi Arabia at the weekend to discuss risks to the global economy after new Asian economic and health data kept investors on guard.
See also:
Natural Gas (Hellenic Shipping News)
This winter, natural gas prices have been at their lowest levels in decades. On Monday, February 10, the near-month natural gas futures price at the New York Mercantile Exchange (NYMEX) closed at $1.77 per million British thermal units (MMBtu). This price was the lowest February closing price for the near-month contract since at least 2001, in real terms, and the lowest near-month futures price in any month since March 8, 2016, according to Bloomberg, L.P. and FRED data.
In addition, according to Natural Gas Intelligence data, the daily spot price at the Henry Hub national benchmark was $1.81/MMBtu on February 10, 2020, the lowest price in real terms since March 9, 2016. Henry Hub spot prices have ranged between $1.81/MMBtu and $2.84/MMBtu this winter heating season (since November 1, 2019), generally because relatively warm winter weather has reduced demand for natural gas for heating. Natural gas production growth has outpaced demand growth, reducing the need to withdraw natural gas from underground storage.
Dry natural gas production in January 2020 averaged about 95.0 billion cubic feet per day (Bcf/d), according to IHS Markit data. IHS Markit also estimates that in January 2020 the United States saw the third-highest monthly U.S. natural gas production on record, down slightly from the previous two months.
IHS Markit estimates that U.S. natural gas consumption by residential, commercial, industrial, and electric power sectors averaged 96 Bcf/d for January, which was about 4.4 Bcf/d less than the average for January 2019, largely because of decreases in residential and commercial consumption as a result of warmer temperatures.
However, IHS Markit estimates that overall consumption of natural gas (including feed gas to liquefied natural gas (LNG) export facilities, pipeline fuel losses, and net exports by pipeline to Mexico) averaged about 117.5 Bcf/d in January 2020, an increase of about 0.2 Bcf/d from last year. This overall increase is largely a result of an almost doubling of LNG feed gas to about 8.5 Bcf/d.
Because supply growth has outpaced demand growth, less natural gas has been withdrawn from storage withdrawals this winter. Despite starting the 2019 – 20 heating season with the third-lowest level of natural gas inventory since 2009, by January 17, 2020, working natural gas inventories reached relatively high levels for mid-winter. The U.S. Energy Information Administration’s (EIA) data on natural gas inventories for the Lower 48 states as of February 7, 2020, reflect a 215 Bcf surplus to the five-year average. In EIA’s latest short-term forecast, more natural gas remains in storage levels than the previous five-year average through the remainder of the winter.
Source: U.S. Energy Information Administration, Weekly Natural Gas Storage Report and Short-Term Energy Outlook
According to the National Oceanic and Atmospheric Administration (NOAA), January 2020 was the fifth-warmest in its 126-year climate record. Heating degree days (HDDs), a temperature-based metric for heating demand, have been relatively low this winter, which is consistent with a warmer winter. During some weeks in late December and early January, the United States saw 25% to 30% fewer HDDs than the 30-year average. This winter, through February 8, residential natural gas customers in the United States have seen 11% fewer HDDs than the 30-year average.
Source: U.S. Energy Information Administration, based on National Oceanic and Atmospheric Administration Climate Prediction Center data
Source: EIA
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