Fri Aug 26 2016
Jim Andrews (461 articles)

U.S. Market Indexes Lower as Stock Momentum Slows

U.S. market indexes were mostly lower Friday. For the day the Dow Jones Industrial Average closed at 18395.40 for a loss of -53.01 points or -0.29 percent. The S&P 500 was also lower, closing at 2169.04 for a loss of -3.43 points or -0.16 percent. The Nasdaq Composite was higher for the day at 5218.92 for a gain of 6.71 points or 0.13 percent. The VIX Volatility Index was just slightly higher at 13.71 for a gain of 0.08 points or 0.59 percent.

Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.

Friday’s Market Movers

Investors digested a lot of information on Friday as stocks ended the day just slightly lower. Janet Yellen’s speech at the Monetary Policy Symposium in Jackson Hole indicated the Fed’s readiness to raise rates and potentially as soon as September.

On the economic calendar, GDP data from the second estimate for the second quarter was basically unchanged at 1.1 percent SAAR, down just slightly from 1.2 percent but still above the first quarter’s 0.8 percent. The first estimate of corporate profits was also slightly disappointing with a year over year growth rate of -2.2 percent just slightly better than the first quarter’s -2.3 percent.

Other reports on the economic calendar on Friday included International Trade, Wholesale Trade, Consumer Sentiment and the Baker Hughes Rig Count. The deficit decreased in international trade with a reported trade balance of $-59.3 billion. Wholesale trade inventories were unchanged from the previous month after an increase of 0.2 percent. The University of Michigan’s Consumer Sentiment Index was down from the previous month with considerations for new presidential policies ahead. The Consumer Sentiment Index was at 89.8, down from 90.4 in the previous month’s report.

Oil prices were basically flat for the day while rigs increased. The Baker Hughes Rig Count report showed an increase of 23 rigs in North America from the previous week.

Stocks trading actively for the day on Friday included the following:

Bank of America
Chesapeake Energy
General Electric

In the Dow Jones Industrial Average, the following stocks led gains and losses for the day:

Losses (percent)
Verizon Communications Inc.       -1.29
McDonald’s Corp.              -0.86
E.I. du Pont de Nemours & Co.     -0.84
Gains (percent)
Merck & Co Inc.  0.85
Intel Corp.           0.48
Johnson & Johnson         0.40

In the broad market, utilities, materials and consumer staples led losses while the healthcare sector regained some ground. S&P 500 healthcare stocks were up 0.38 percent for the day. Technology was also mostly higher. The Nasdaq Composite gained 6.71 points or 0.13 percent to close at 5218.92 for the day. The Nasdaq 100 was also higher at 4783.69 for a gain of 8.27 points or 0.17 percent. Stocks leading gains in the technology sector included the following:

Gains (percent)
Liberty Media Corp.          9.53
Autodesk Inc.     8.12
NetEase Inc.      4.42
Seagate Technology      3.99

In commodities, gold traded lower as evidenced by the SPDR Gold Trust which reported a loss of -0.18 points or -0.14 percent. The dollar was higher for the day as the U.S. Dollar Index gained 0.76 points for a gain of 0.80 percent to 95.48.

Small-Cap Stocks

In small-caps, the Russell 2000 Index was lower at 1238.03 for a loss of -1.97 points or -0.16 percent. The S&P 600 Small-Cap Index was lower at 751.91 for a loss of -2.10 points or -0.28 percent. The Dow Jones Small-Cap Growth TSM Index was lower at 7541.73 for a loss of -7.31 points or -0.10 percent. The Dow Jones Small-Cap Value TSM Index was lower at 8736.84 for a loss of -34.53 points or -0.39 percent.

Other Notable Indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1559.67 for a loss of -5.13 points or -0.33 percent; the S&P 100 Index at 959.06 for a loss of -0.75 points or -0.08 percent; the Russell 3000 Index at 1283.03 for a loss of -2.30 points or -0.18 percent; the Russell 1000 Index at 1201.74 for a loss of -2.17 points or -0.18 percent; and the Dow Jones U.S. Select Dividend Index at 614.39 for a loss of -5.20 points or -0.84 percent.

Jim Andrews

Jim Andrews

Jim Andrews is Desk Correspondent for Global Stock, Currencies, Commodities & Bonds Market . He has been reporting about Global Markets for last 5+ years. He is based in New York