Japan's downbeat GDP data restricts gains
U.S. stocks ended Monday's choppy session fractionally higher on 17 November 2014 at Wall Street. A small gain on the S&P 500 was enough to send the index into record close. Stocks were under pressure in the morning trade following news that Japan fell into recession and less-than-stellar manufacturing data in the U.S. Comments from European Central Bank president Mario Draghi, who said that the ECB would be open to buying government bonds, if needed have buoyed U.S. stocks somewhat in the afternoon trade, but gains petered out.
The Dow Jones Industrial Average added 13 points, or 0.1%, to 17,647.75. The Nasdaq Composite closed 17.5 points, or 0.4%, lower at 4,671. The S&P 500 ended 1.5 points higher at 2,041.32.
Countercyclical sectors displayed strength with consumer staples, health care, and utilities sectors registering solid gains while the telecom services sector underperformed.
In overnight news, Japan reported its gross domestic product declined by 1.6% in the third quarter, year-on-year, versus expectations of a 2.2% increase in growth. This somewhat surprising news sunk Japan's Nikkei stock index by 3% on Monday, which in turn put downside pressure on most other major world stock markets. Japan's downbeat GDP data is yet another indication that most of the major world economies are struggling and that tougher times may lie ahead.
The markets paid little attention to reports European Central Bank chief Mario Draghi said the ECB purchasing government bonds cannot be ruled out. Draghi has stated in the past he will do whatever it takes to keep the EU economy afloat.
U.S. economic data due for released Monday included the Empire State manufacturing survey, and industrial production and capacity utilization. That data had little impact on the market place.
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It was mixed finish for precious metals on Monday, 17 November 2014 at Comex. Gold gained on Monday, building on the prior trading session's big jump that pushed prices to their highest level since Halloween. But silver prices dropped. Gold prices ended the U.S. day session steady to slightly lower Monday, on a corrective pullback from good gains posted last Friday. A stronger U.S. dollar index on Monday also squelched the gold and silver market bulls.
Gold for December delivery added $1.80, or 0.21%, to $1,187.40 an ounce. December silver was down 4 cents to $16.27 an ounce.
Crude oil futures fell on Monday, 17 November 2014 at Nymex finding renewed pressure after data showed Japan unexpectedly fell back into recession in the third quarter, highlighting concerns about demand.
West Texas intermediate futures for December delivery on Nymex fell 78 cents, or 1%, to $75.04 a barrel.
Treasuries ended near their lows with the 10-yr higher by a basis point at 2.33%.
Tomorrow, October PPI (consensus -0.2%) will be released at 8:30 ET while the NAHB Housing Market Index for November (consensus 55) will cross the wires at 10:00 ET.
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