Dow halts its four-week losing streak
U.S. stocks closed with solid gains on Friday, 24 October 2014. Investors shrugged off worries about New York's first Ebola case, which had weighed on U.S. stock futures. Sentiment got a lift from stronger-than-anticipated housing data and better-than-expected quarterly results from companies such as Procter & Gamble.
The Dow Jones Industrial Average advanced by 127.51 points, or 0.8%, to close at 16,805.41 on Friday. It gained 2.6% for the week, also halting a four-week losing streak. The S&P 500 finished up 13.75 points, or 0.7%, to 1964.57. The benchmark rose 4.1% for the week, snapping a four-week losing streak. The Nasdaq gained 30.92 points (0.7%) at 4483.72.
Eight out of ten sectors ended in the green led by healthcare and technology sectors.
Equity indices endured a shaky start with a handful of concerns factoring into the cautious posture in the early going. Contagion concerns stemming from news that a New York doctor who exhibited Ebola-like symptoms tested positive for the disease.
The technology sector traded in-line with the market for the bulk of the session before joining the leaders in the afternoon. Dow component Microsoft advanced 2.5% after beating earnings and revenue estimates while chipmakers drew strength from KLA-Tencor. The stock soared 6.9% in reaction to in-line results.
Disappointing economic data from China that revealed a 1.3% year-over-year drop in New Home Sales and featured monthly declines in all 70 cities, and below-consensus results from Amazon.com also worsened sentiments. Amazon shares dropped more than 8%.
Also Read
Economic data at Wall Street was limited to the New Home Sales report for September, which revealed a 0.2% increase to 467,000 from a revised rate of 466,000 (from 504,000). However, that was below the consensus, which expected a reading of 475,000. Most notably, the large downward revision to the August figures took away what had been the strongest monthly reading since May 2008. Also, prices for new homes fell 4.0% year-over-year, which was the first such decline since April and the largest drop since a 7.7% tumble in January 2012.
Treasuries ended flat after sliding from their overnight highs. The 10-yr yield ended at 2.27%.
Participation was roughly in-line with long-term averages as 700 million shares changed hands at the NYSE floor.
Bullion prices recovered after two days of losses on Friday, 24 October 2014 at comex supported by haven demand following news that a doctor in New York contracted Ebola. Gold rose to its highest level since 10 September 2014 earlier this week but backed off as the week ended. Physical buying ahead of the Indian Diwali holiday helped push gold to its upper levels.
Gold futures for December delivery rose $2.70, or 0.2%, to settle at $1,231.80 an ounce. For the week, the precious metal is down 0.6%. December silver edged up 2 cents to $17.18 an ounce.
Crude oil futures finished higher on Friday, 24 October 2014 at Nymex as a supply glut and petering demand drag on prices lower for the commodity. Oil prices seesawed for most of Friday, gaining earlier on reports that Saudi Arabia had reduced oil supplies.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December fell $1.08, or 1.3%, to settle at $81.01 a barrel. New York-traded oil lost 1.3% on the week, and its losing streak is the longest since late August, when weekly losses also stretched for four weeks.
Monday's data will be limited to the 10:00 ET release of the Pending Home Sales report for September (consensus 0.5%).
Powered by Capital Market - Live News