Category Archives: Economy/Stock Market

The indices kicked off a week of negative results closing just slightly down on Monday, as Energy stocks led decliners in choppy trading. In economic news, a reading of the Chicago PMI fell to 50.6 from 54.2 in September, showing a decrease in business activity in the Midwestern region. Activity was expected to increase to a reading of 54.3. However, consumer spending ticked up in September, increasing by 0.5%, while income rose by 0.3%. Analysts expected income to rise by 0.4%. Stocks continued to trade lower on Tuesday on election uncertainty after the release of conflicting poll data. The Institute for Supply Management Manufacturing Index increased at a faster rate than expected, coming in at 51.9 for October, up from 51.5 in September. Analysts had expected a slightly lesser uptick to 51.7. Stocks continued to slip midweek on a variety of economic news. The Federal Reserve concluded its two-day Federal Open Market Committee meeting, keeping the Federal Funds rate unchanged at 0.25% to 0.5% in an 8 to 2 decision. Stocks traded lower again on Thursday amid a dip in crude oil and other economic news. West Texas Intermediate crude continued to fall by 1.61% to settle at $44.61 a barrel. The results marked its fifth session decline and worst close in six weeks. Elsewhere, Department of Labor data showed new jobless claims increased by 7,000 to 265,000. Continuing claims, meanwhile, decreased by 14,000 to 2.026 million for the week ended October 22. U.S. factory orders climbed 0.3% in September up from 0.2% growth in August, beating analysts’ expectations of flat results for September. Indices closed the week firmly in red territory on Friday, as stocks dipped on the release of October employment numbers. Department of Labor data showed an addition of 161,000 jobs, which was slightly short of the 175,000 economists had forecast. However, August and September figures were upwardly revised by a combined 44,000. Additionally, the unemployment rate slipped to 4.9%, down from 5%. 

Stocks stepped up on Monday despite West Texas Intermediate crude falling 0.7% to settle at $50.52 a barrel. Indices ended trading in the red zone on Tuesday on news that consumer sentiment dipped in October. The Conference Board Consumer Confidence Index declined 4.9 points to 98.6, a three-month low.

The markets opened the week with gains as both oil prices and Energy sector shares rose. Stocks traded lower on Tuesday with brands dipping on less-than-optimum quarterly details from Alcoa, who unofficially kicked off earnings season, as well as a downswing in oil. West Texas Intermediate crude oil settled at $50.84 a barrel. Indices closed out Wednesday with mixed results. The Dow and S&P 500 closed in the green while the NASDAQ ended in the red zone for the session. Moves were mixed amid the release of minutes from the September Federal Open Market Committee meeting as well as a dip in crude oil. The bulk of FOMC members voted to keep rates unchanged while three dissented. OPEC boosted output to 33.39 million barrels per day in September, up 220,000 barrels. West Texas Intermediate crude oil settled at $50.18 a barrel. Stocks rebounded up from early session levels to land just slightly lower on Thursday. Meanwhile, crude oil prices climbed despite a jump in reserves. Energy Information Administration data showed inventories rose by 4.9 million barrels in the past week. Department of Labor figures showed initial jobless claims held steady at 246,000 last week, versus expectations of 254,000 new claims. Indices ended the week in positive territory, as a rally among financial shares faded in the wake of stronger-than-expected quarterly results from the likes of Citigroup and Wells Fargo. In a preliminary measure, the University of Michigan’s Consumer Sentiment Index slipped to 87.9 from 91.2 in September. Elsewhere, U.S. retail sales rose by 0.6% versus an expected increase of 0.7%. Excluding cars and energy, sales rose 0.3%, as anticipated. 

The markets kicked off the week closing in the red zone with stocks trading lower amid a variety of economic news. The ISM Manufacturing Index hit 51.5, versus consensus expectations of 50.2, indicating manufacturing increased. The reading was up from 49.4 in August. The slip continued on Tuesday. West Texas Intermediate crude oil shed 0.25% to settle at $48.69 a barrel. However, Energy stocks led advancers on Wednesday. Stocks stepped up on rising crude oil prices. West Texas Intermediate crude gained 2.01% to settle at $50.29 a barrel. The ISM Non-Manufacturing Index climbed 5.7 points to 57.1, exceeding expectations. Factory orders also edged up 0.2% in August. Durable goods orders tacked on 0.1% while orders for nondurable goods rose 0.2%. Indices closed with mixed moves on Thursday. The Dow and NASDAQ shed some points while the S&P 500 eked out a fractional gain ahead of Friday’s jobs report. Labor Department numbers showed new jobless claims fell by 5,000 to 249,000 for the week ending October 1. The four-week average declined by 2,500 to 253,500, marking its lowest level since 1973. West Texas Intermediate crude tacked on 1.34% to settle at $50.50 a barrel. Trading closed in red territory on Friday, with stocks slipping on a downtick in oil prices and less-than-optimum employment numbers. West Texas Intermediate crude oil dipped 1.49% to settle at $49.69 a barrel. Meanwhile, Labor Department data showed the U.S. economy added 156,000 jobs in September versus a median estimate of 172,000. The U.S. unemployment rate edged up to 5% from 4.9%.

The indices traded lower on Monday with many Healthcare stocks leading the downswing on a variety of economic news. New home sales decreased in August. Newly constructed home sales dipped 7.6% to an annual rate of 609,000 units, versus July’s upwardly revised addition of 659,000 units. Sales exceeded consensus expectations of 595,000. The markets rallied on Tuesday with Technology brands leading the way up amid the release of favorable consumer sentiment data. The Conference Board Consumer Confidence Index added 2.3 points to 104.1 in September, a level not seen since August 2007. The result far exceeded an expected reading of 98.8, and was up from 101.8 in August. Stocks rallied alongside a lift in crude oil on Wednesday. West Texas Intermediate crude tacked on 4.52% to settle at $46.69 a barrel. Following a three-day energy meeting in Algeria, the Organization of Petroleum Exporting Countries (OPEC) agreed to reduce oil production to 32.5 million barrels a day in November. Stocks sold off on Thursday, trading lower on a variety of economic news. Gross Domestic Product levels ticked up in the second quarter as the Bureau of Economic Analysis’ third estimate showed real GDP increased 1.4%, slightly above the prior two quarters and prior estimates. Consumer spending tacked on 4.3% over the quarter. Additionally, initial jobless claims climbed with Labor Department figures showing new claims rose by 3,000 to 254,000, while continuing claims decreased by 46,000 to 2.062 million in the week ended September 17. Technology and Financial stocks stepped up on Friday. West Texas Intermediate crude oil also rose, adding 0.29% to settle at $47.97 a barrel. The University of Michigan’s Consumer Sentiment Index hit 91.2 this month versus expectations of a 90 reading. In other items, U.S. personal income increased slightly in August, matching estimates. Bureau of Economic Analysis data showed incomes rose 0.2% last month, versus July’s 0.4% gain.

The market indices kicked off the week with losses; however, the S&P 500 index only declined 0.04 point marking the smallest percentage move for the index in either direction since October 2014. On Tuesday, indices closed with slight gains. Housing construction took a breather as Commerce Department data showed starts slipped 5.8% in August to hit an annual rate of 1.14 million units, versus expectations of an annual pace of 1.18 million units. West Texas Intermediate crude rose by 0.66% to settle at $44.15 a barrel. Positive moves continued mid-week when the NASDAQ closed at a new record level. Stocks stepped up following the release of comments from the latest Federal Reserve meeting. In a 3 to 7 vote to keep rates unchanged, the Federal Open Market Committee indicated the possibility of a hike has strengthened. Currently, economic risks “appear roughly balanced.” Energy Information Administration data showed domestic oil reserves decreased by 6.2 million barrels last week, versus an expected gain of 3.25 million barrels, which resulted in West Texas Intermediate crude increasing 2.9% for the day. Indices closed the session with gains on Thursday. Initial jobless claims declined last week as Labor Department data showed new claims decreased by 8,000 to 252,000. Investors also heard more down housing news as sales of existing homes slipped by 0.9% in August, but were up 0.8% from a year ago. Like Monday’s results, the markets ended Friday’s trading session in the red. Energy brands retreated following a dip in crude oil. West Texas Intermediate crude fell 4% to settle at $44.48 a barrel. Thankfully, for the week, the major indices still eked out a gain.

The markets kicked off the week closing well into the green zone on Monday. Many stocks rebounded from Friday’s downswing on Federal Reserve comments. In a speech on Monday in Chicago, Fed Governor Lael Brainard cautioned prudence in raising interest rates. Indices closed lower on Tuesday with Energy stocks retreating amid a drop in crude oil. West Texas Intermediate crude dipped 3% to settle at $44.90 a barrel. Additionally, the International Energy Agency reduced its demand estimates by 100,000 barrels a day for this year and by 200,000 daily barrels in 2017. The trading session closed with mixed moves on Wednesday, as the Dow Jones Industrial Average and S&P 500 shed some points while the NASDAQ added slight gains. West Texas Intermediate crude oil fell by 2.9% to settle at $43.58 a barrel. On Thursday, volatility returned to stocks after a relatively flat summer, after spending 43 trading days without a 1% move. Thursday’s 1% gain for the S&P 500 marked the fourth session out of five in which the index swung 1% or more. Financial and energy companies dragged down U.S. stocks on Friday with the three major indices falling. For the week all three indices posted weekly gains with the NASDAQ experiencing its biggest weekly jump since July. 

After the Labor Day holiday, the major indices closed in the green zone on Tuesday, with the NASDAQ hitting a new record high thanks to good performance in many Technology brands. West Texas Intermediate tacked on 1.02% to settle at $45.50 a barrel. The ISM Non-Manufacturing Index showed services fell to 51.4 last month, versus an expected reading of 55, down from 55.5 in July. The markets ended trading mixed on Wednesday, as the Dow Jones Industrial Average and S&P 500 shed some points while the NASDAQ closed at a new record level again. The Federal Reserve’s Beige Book, which covered economic activity from July through mid-August, showed a modest to moderate pace across most districts. Additionally, an anecdotal read on the 12 districts showed labor markets continued to tighten, and that energy markets had seen signs of stabilization. West Texas Intermediate crude added 1.34% to settle at $46.07. Stocks traded lower on Thursday as a result of a variety of economic news. Crude oil prices ramped up following an unexpected dip in domestic reserves. U.S. inventories decreased by 14.5 million barrels over the last week versus an expected increase of 200,000 barrels. West Texas Intermediate crude oil added 4.22% to settle at $47.42 a barrel on the news. Labor Department data showed new claims fell by 4,000 to 259,000 for the last week. The red results continued into Friday amid rising interest rate concerns. Meanwhile, West Texas Intermediate crude shed 3.7% to settle at $46.46 a barrel.