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Mixed finish for US stocks

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Capital Market
Last Updated : Mar 30 2017 | 10:47 AM IST

Shares of UnitedHealth Group and Travelers were the largest decliners

US stocks closed at a mixed mode on Wednesday, 29 March 2017. Nasdaq closed higher for a fourth straight session on Wednesday, while the Dow industrials finished lower, as stock investors digested mixed economic data and a drop in U.S. gasoline inventories bolstered the energy sector.

The Dow Jones Industrial Average fell 42.18 points, or 0.2%, to close at 20,659.32, for its ninth losing session in the past 10. The Nasdaq Composite climbed 22.41 points, or 0.4%, to finish at 5,897.55. Meanwhile, the S&P 500 index finished up 2.56 points, or 0.1%, at 2,361.13.

Energy was the day's largest gainer, with the sector closing up 1.2% following bigger-than-expected declines in gasoline and distillate stockpiles in the latest week, a positive sign for demand.

Shares of UnitedHealth Group and Travelers were the largest decliners. Only five of the S&P 500's 11 primary sectors finished in the green. Financials, which have been big gainers in recent months, led decliners.

Crude oil prices rallied on Wednesday, 29 March 2017 settling at their highest level in roughly three weeks after data from the Energy Information Administration showed a weekly rise in U.S. crude inventories that was below some market forecasts, along with bigger-than-expected declines in gasoline and distillate stockpiles. Disruptions to crude output in Libya, as well as hopes for a six-month extension to the production cut agreement, led by the Organization of the Petroleum Exporting Countries, added further support to oil prices.

May West Texas Intermediate crude rose $1.14, or 2.4%, to settle at $49.51 a barrel on the New York Mercantile Exchange. The contract settled at its highest level since 9 March. May Brent gained $1.09, or 2.1%, to $52.42 a barrel.

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The EIA reported that crude inventories rose by 900,000 barrels to a weekly record 534 million barrels for the week ended March 24. But that rise was less than half the 1.9 million-barrel climb posted by the American Petroleum Institute late Tuesday. Market had forecast a climb of 300,000 barrels, while others expected an even larger increase. The EIA also said gasoline supplies dropped 3.7 million barrels, while distillate stockpiles fell 2.5 million barrels last week. Market had forecast a fall of 2.1 million for gasoline and decline of 1.1 million for distillates.

The ICE U.S. Dollar Index rose 0.3% to trade above 100.

On the data front, today's economic releases were limited to February Pending Home Sales and the weekly MBA Mortgage Applications Index. Pending Home Sales for February rose 5.5% while the consensus expected an increase of 2.4%. Today's reading follows an unrevised 2.8% drop in January. Separately, the weekly MBA Mortgage Applications Index decreased 0.8% to follow last week's 2.7% decline.

Bullion prices ended lower at Comex on Wednesday, 29 March 2017. Gold futures fell on Wednesday for a second straight session, adding to their decline from the one-month high they hit at the start of the week as the U.S. dollar strengthened on the back of Brexit-induced weakness in the euro.

Gold for April delivery on Comex fell $1.90, or 0.2%, to settle at $1,253.70 an ounce. It settled Monday at a one-month high, then lost a dime on Tuesday. June gold which is also among the most-active contracts, ended at $1,256.80, down $2, or 0.2%. May silver finished flat at $18.252 an ounce.

In the Treasury market, U.S. sovereign debt settled with a modest gain for the second time this week. The benchmark 10-yr yield closed four basis points lower at 2.38%.

Tomorrow, investors will receive the third estimate of fourth quarter GDP (consensus 2.0%) and Initial Claims (consensus 245,000) at 8:30 ET.

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First Published: Mar 30 2017 | 9:39 AM IST

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