Category Archives: Economy/Stock Market

The U.S. markets began the week closing well into red territory on Monday. Technology stocks traded lower on a variety of economic data. Personal Income grew by 0.3% in August, missing expectations of a 0.6% advance. August’s personal income was also down from an upwardly revised 0.5% jump in July, while real spending ticked up 0.4% last month, bettering July’s rate. U.S. pending home sales also retreated in August. Consumer confidence improved in September with the Conference Board’s consumer sentiment index’s final reading coming in at 103, up from 101.3 in August. Indices closed Wednesday’s session on a positive note, as Technology stocks rallied. The ISM Manufacturing Index dipped to 50.2 last month from 51.1 in August. Indices ended the week on a positive note, with Energy stocks leading the rally. Labor Department data showed an addition of 142,000 jobs in September; however, the results were well shy of an expected 200,000 jobs. The unemployment rate held tight at 5.1%.

The week began just slightly up after last Friday’s red session. While the broader market experienced gains, the overall results were tempered with a tumble in Biotechnology stocks following criticism from Hilary Clinton and the New York Times. Global stocks fell the next day, dragged down by shares of miners and other raw materials producers. Biotechnology drug makers suffered another day of criticism, resulting in their stock prices declining. Stock prices in Europe fell on news that Volkswagen’s clean diesel engines produce more emissions than U.S. and European standards allow. U.S. stock markets continued to lag mid-week with crude oil falling to $44.48 a barrel. Down trading sessions on Thursday and Friday cumulated the week’s red results. Labor Department data showed new jobless claims climbed by 3,000 to 267,000.

The week began on a down note with Energy stocks leading the decline alongside a dip in crude oil prices; however, the slip was reversed Tuesday, as Energy stocks rallied ahead of the Federal Open Market Committee meeting. In other economic news, U.S. retail sales ticked up 0.2% in August from a 0.7% gain in July. Discounting cars and gas, sales climbed 0.4%. The rally continued Wednesday as crude oil experienced strong gains. The Consumer Price Index showed inflation retreated in August with a 0.1% dip in headline inflation versus expectations of no change. Energy prices slipped 2% last month, while food prices edged up 0.2%. Thursday’s big news came by way of the highly anticipated comments from the Federal Open Market Committee meeting. The Federal Reserve kept its interest rate unchanged. Stocks retreated after Fed Chair Janet Yellen said that global developments overshadowed signs of strength in America. Additionally, housing starts fell by 3% to 1.13 million units in August, missing expectations of a lesser dip to 1.16 million. Friday’s down market pushed the week into the red zone with the Materials and Telecommunications sectors leading the decline.

The holiday-shortened week ended with the three major indices all closing above 2%. Tuesday stocks rallied for their biggest one-day gain in two weeks. The surge was the largest percentage and point gain since Aug. 26, when stocks roared back from a selloff caused by unease about slowing growth in China, the world’s second-biggest economy. Tuesday’s gains were knocked back by Wednesday’s decline. The Dow Jones Industrial Average declined 1.4%, despite rising nearly 172 points earlier in the day, following sharp gains in Asia and Europe after China’s finance ministry signaled that fiscal stimulus was on the way. Thursday’s action pushed nine of the ten S&P 500 sectors into positive territory with only Utilities lagging. Indices closed in the green zone on Friday, with Technology and Healthcare leading the day. The Producer Price Index held up better than expected in August as it was unchanged. Additionally, the University of Michigan consumer confidence index for September lost 6.2 points to 85.7. The September reading is well below the consensus estimate of 91.5 and is the third consecutive monthly decline, putting it at its lowest this year. Meanwhile, crude oil shed $1.29 to settle at $44.63 a barrel.

The week began with the Dow Jones Industrial Average closing at its lowest level in 18 months. The S&P 500 Index and the NASDAQ also lost nearly 4% each in a frenzy of selling. The losing streak continued on Tuesday with a rush of selling minutes before the closing bell. On Wednesday, the three major indices surged nearly 4%, with the S&P pulling itself out of correction territory. Still, Wednesday’s big gains don’t erase the financial pain inflicted by the market’s first 10 drop since 2011. The Dow remained 11.1% off its recent high, the S&P 500 remained down 8.9%, while the NASDAQ composite remains 10% off its high and the small-cap Russell 2000 is down 12.6%. Stocks continued to soar on Thursday as renewed optimism about the U.S. economy eased concerns about the pace of global growth. Oil prices soared more than 10% to their biggest one-day percentage gain in six years amid a surge in commodities. The Commerce Department reported Gross Domestic Product, the broadest measure of goods and services produced across the U.S., expanded 3.7% in the second quarter, well ahead of expectations. The markets ended the week with a whimper, as the major indexes notched gains for the week in a subdued end to one of the most volatile periods in years for global markets. Upbeat economic data has helped reassure some investors that while global growth is slowing, the U.S. remains relatively stable. The Commerce Department said consumer spending rose 0.3% in July.

The week began with a rally as the markets rebounded from last week’s downswing, led by a rise in Technology stocks. Google was up in post-session trading after announcing an operations restructuring and a company name change to Alphabet. Stocks dipped Tuesday, likely a result of sinking crude oil prices and news of an unexpected devaluation of Chinese currency. The People’s Bank of China lowered the yuan by 1.9%, marking its largest decline in more than 20 years. Markets were mixed mid-week with energy stocks stepping up while consumer brands remained flat. Thursday brought news that retail sales increased in July, while the Labor Department stated jobless claims increased more than expectations. The markets closed the week on a positive note with news producer prices increased in July while The University of Michigan’s consumer sentiment index, hit 92.9 in a preliminary reading, down from 93.1 in July, missing expectations of 93.5.

Monday saw several blue-chip stocks, including IBM, Chevron and Apple, trading lower. West Texas Intermediate crude fell 4.1% to settle at $45.17 a barrel. Personal income growth rose 0.4% in June, while consumer spending ticked up by 0.2%, missing expectations of 0.3%. Indices continued downward on Tuesday, despite news that orders for manufactured goods gained 1.8% in June, in line with the consensus forecast. On Wednesday, the S&P 500 index rebounded after three consecutive days of decline. The ISM Nonmanufacturing Index posted its second consecutive gain and the largest since 2008. The July survey bucks other economic data that suggest the economy was off to a slow start in the quarter. Stocks dipped amid a retreat in crude oil on Thursday. On another note, Labor Department data showed initial jobless claims increased by 3,000 to 270,000 last week. On Friday, the Labor Department released July’s data, showing the economy added 215,000 jobs last month, versus expectations of 225,000 additions. The unemployment rate held steady at 5.35%.