Market Roundup: Week Starts with Record Highs, Ends Slightly Down

Economy/Stock Market

The week started out strong with the major indices closing at all-time record highs on Monday. Stocks rallied on a lift in crude oil, as West Texas Intermediate crude added 3.19% to settle at $45.91 a barrel. The record setting did not last long as the market landed in red territory on Tuesday when stocks traded lower on the release of a variety of economic news. The Consumer Price Index was unchanged last month following four straight months of gains. The core CPI, which discounts food and energy, edged up 0.1% which was slightly shy of expectations. On another note, residential construction levels ticked up in July. Total housing starts climbed 2.1% and are up by 5.6% from July 2015. Industrial production increased by 0.7% in July, exceeding consensus expectations. Stocks experienced turbulent trading midweek following the release of the minutes from the July Federal Reserve meeting; however, the market still closed with gains on Wednesday. Comments from the Federal Open Market Committee revealed a split opinion on when to next increase interest rates. Energy Information Administration data showed a downswing of 2.5 million barrels in U.S. reserves over the week ended August 12. The result was well beyond an expected decline of 200,000 barrels. The news pushed West Texas Intermediate crude up to settle at $46.79 a barrel. The markets were mixed most of Thursday, but closed the day down, likely because of the lack of guidance from the Fed on Wednesday about the future of interest rates. Indices closed in the red zone on Friday, rebounding from early losses to end marginally lower. West Texas Intermediate crude added 0.35% to settle at $48.39 a barrel.