Market Roundup: Markets Suffer Down Week on Declining Oil Prices and FOMC Meeting

Economy/Stock Market

The markets began the week in the red zone as investors likely proceeded with caution ahead of Tuesday’s Federal Open Market Committee meeting. Crude oil slipped for the third straight session, with West Texas Intermediate crude dipping 0.4%, settling at $48.88 a barrel. The slip continued the next day with Financial stocks leading declines for the S&P 500 Index. Stocks retreated on a downswing in crude oil, which settled at $48.49 a barrel. Meanwhile, Commerce Department data showed retail sales climbed by a stronger-than-expected 0.5 percent in May. Discounting sales of autos and gasoline, sales increased by 0.3 percent. Stocks traded lower on Wednesday in the wake of comments from the Federal Open Market Committee meeting. Interest rates will remain unchanged for the time being, but there may be as many as two rate increases by the end of the year. In economic news, the Producer Price Index edged up by 0.4% in May, versus consensus expectations of a 0.3% climb. The core measure jumped by 0.3%. Stocks recovered a little on Thursday in late-day trading, despite West Texas Intermediate crude oil slipping 3.8% settling at $46.21 a barrel. The Consumer Price Index rose by 0.2% in May, versus a 0.4% gain in April. The core measure, which discounts food and energy, edged up by 0.2%. Additionally, Labor Department figures showed new claims ramped up by 13,000 to 277,000. Indices closed in red territory on Friday, with Technology and Healthcare stocks leading the downswing; however, West Texas Intermediate crude increased 3.8% to settle at $47.98 a barrel.

Market Roundup: Despite Mid-Week Gains, Markets End Week Down

Economy/Stock Market

The markets started the week with upward movements with Financial stocks rebounding to lead the S&P 500 Index higher. Stocks stepped up on words from the Federal Reserve. Speaking before the World Affairs Council of Philadelphia, Fed Chairwoman Janet Yellen said the central bank may boost interest rates further before the economy reaches its growth targets and cautioned against relying on the disappointing data of a single jobs report. On Tuesday, the markets traded with mixed moves, as the Dow Jones Industrial Average and S&P 500 closed with slight gains, while the NASDAQ shed some points. Momentum faded somewhat in the afternoon. Texas Intermediate crude increased 1.4 percent to settle at $50.36 a barrel, resulting in an increase in several Energy sector stocks. Federal Reserve figures showed consumer credit increased $13.4 billion in April, versus average economist estimates of $18 billion. Indices returned to green territory on Wednesday, with the S&P 500 closing near an all-time high. Raw-materials and Industrial stocks led the upswing; however, Energy stocks took a breather despite a ramp up in crude oil. Despite rebounding from session lows, the markets landed slightly down on Thursday. Labor Department data showed new claims fell in the last week by 4,000 to 264,000. Indices continued trading in the red zone on Friday. In a preliminary measure, the University of Michigan Consumer Sentiment index dipped by 0.4 point to 94.3 in June versus estimates for a reading of 94 and shy of May’s final reading of 94.7. Elsewhere, West Texas Intermediate crude slipped three percent to close the week at $49.07 a barrel.