Category Archives: Economy/Stock Market

The markets started the week on a positive trajectory with gains in both the Energy and Utilities sectors. Trading ended mixed on Tuesday. The Energy sector weighed on the markets as a result of a downswing in crude oil. The Consumer Price Index ticked up by 0.2%. Industrial production decreased by 0.2% in October, while manufacturing output, however, increased by 0.4%. Mid-week, investors reacted favorably to minutes from the latest Federal Open Market Committee meeting. Comments from the October meeting indicated the majority of members supported a rate hike in December, although no decision had been made, and any move continues to be data dependent. The markets pulled back on Thursday with Healthcare stocks trading lower while Technology stocks traded higher. Labor Department data showed initial jobless claims decreased by 5,000 to 271,000 last week. On Friday, the markets were buoyed by news of stronger-than-anticipated sales from retailers. The weekly results ended strong ahead of the Thanksgiving holiday and the beginning of the holiday shopping season.

The week began on a down note with consumer brands dragging the markets lower. Investors were also likely worried about a potential interest rate rise and the health of the global economy. On Tuesday, the both the Dow Jones Industrial Average and the S&P 500 Index inched higher while the NASDAQ shed some points. Materials, Technology and Telecom sectors traded slightly lower. Stocks retreated amid a variety of economic news mid-week. The MBA Mortgage Applications Survey showed applications fell in the last week while mortgage rates were higher for the third consecutive week following a strong October jobs report last Friday. Barring any significant hit to the economy, the Federal Reserve will likely begin to raise rates in December. Indices closed well into red territory on Thursday with Financial and Energy stocks leading the way down. Labor Department data, released today, showed initial jobless claims held steady at 276,000 last week, while the four-week moving average increased by 5,000 to 267,750. The decline continued Friday with Energy stocks continuing to decline amid lower crude oil prices. Retail sales showed a 0.1% increase while U.S. Producer Prices decreased 0.4% in October. In a preliminary measure, the University of Michigan Sentiment Index hit 93.1 for November from 90 in October. Economists had expected a reading of 91.

The week began with positive results, with the Energy sector leading the way up. The rally pushed the Dow Jones Industrial Average back into positive territory for 2015 for the first time since July. The rally in Energy continued on Tuesday, bolstered by rising crude costs. Additionally, monthly auto sales increased. The markets did a turnabout mid-week on a variety of economic news. Services industry activity ticked up in October, with the Institute for Supply Management’s non-manufacturing index rising from 56.9 to 59.1. The results exceeded consensus expectations. On another note, the U.S. trade gap contracted to $40.8 billion in September, from a revised $48 billion in August. Thursday’s trading session closed slightly lower in the wake of mixed earnings reports. Stronger-than-expected jobs numbers led to mixed moves on Friday. The Dow and NASDAQ tacked on some points while the S&P 500 traded fractionally into the red. October employment data exceeded expectations, with the U.S. economy adding 271,000 jobs last month versus expectations of 180,000. The unemployment rate slipped to five percent. Additionally, August’s numbers were upwardly revised by 17,000, while September’s results were revised down by 5,000.

Stocks dipped Monday as investors looked ahead to a big week of quarterly reports and the Federal Open Market Committee meeting. The dip continued Tuesday as energy stocks weighed on the market because of a dip in crude oil. Healthcare stocks in the S&P 500 rose the most on Tuesday, up 1.7%. Treasury prices rose as well, pushing the 10-year note’s yield down to 2.03%. When the Federal Reserve decided to keep interest rates on hold and toned down its concerns about global financial markets, investors reacted kindly, pushing the markets higher for the day. Crude Oil also moved higher, bolstering Energy stocks. Trading ended slightly in the red zone on Thursday, as the Commerce Department showed real GDP increased 1.5% in the third quarter, which was well shy of the 3.9% advance during the second quarter. Indices traded into red territory on Friday. Stocks may have dipped for the day, but the markets ended the month well in the green.

U.S. stocks edged higher on Monday despite a drop in crude oil that weighed heavily on Energy stocks. Technology stocks led the rally to ultimately push the start of the week into positive territory. Healthcare stocks and a series of lackluster earnings dragged down the markets on Tuesday, with the pressure from the Healthcare sector continuing on Wednesday because of criticism of drug prices. Technology stocks pushed the markets higher on Thursday with better-than-expected earnings. Existing-home sales rose in September, with total sales up 4.7% from August and 8.8% from September 2014. Impressive earnings from big-name Technology stocks pushed the S&P 500 back into positive territory for the year. 

The week began with a strong rally that propelled the S&P 500 index to its biggest five-day percentage gain since 2011 as investors bet low interest rates would stick around for longer as a result of the weaker-than-expected jobs report released last Friday. The Institute for Supply Management’s non-manufacturing index hit 56.9, which was well shy of August’s reading of 59 and expectations of 57.5. The markets were mixed on Tuesday while the Commerce Department data showed the U.S. trade deficit grew nearly 16% to $48.3 billion in August. Exports slipped by 2% to $185.1 billion. Stocks led the markets back into green territory Wednesday with Energy stocks trading higher despite a dip in crude oil prices. The rally continued Thursday when the Federal Reserve released comments from their September meeting. The report showed that members believed it would be prudent to wait until risks eased before tightening monetary policy, noting that weaker Chinese growth and market volatility would prove an obstacle to inflation hitting the Fed’s 2% target rate. The week was capped off with strong gains across several sectors. 

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.