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US stocks end in a mixed note following positive jobs data

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Capital Market
Last Updated : Mar 10 2014 | 9:17 PM IST

Indian ADRs ended mostly lower on Friday

The stock market finished an upbeat week on a mixed note on Friday, 07 March 2014. The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February but a closer look into the report suggested that the weather excuse, which has been commonplace for the past several weeks, may have been overused in justifying some of the disappointing economic data received in recent weeks.

The Dow Jones Industrial Average rose 30.83 points, or 0.2%, to 16,452.72. The Nasdaq Composite bucked the trend, dropping 15.90 points, or 0.4%, to 4,336.22. The index record a fifth-straight weekly gain, rising 0.7% since last Friday. The S&P 500 index rose 1.01 points, or 0.1%, to close at 1,878.04, adding to the previous record set on Thursday. The S&P 500 advanced 1% for the week, while the Dow gained 0.8%.

Stocks retreated from their opening highs with the Nasdaq pacing the slide. Specifically, biotechnology underperformed for the second day in a row, which fueled much of the Nasdaq weakness. Stocks saw choppy trading action over the course of the session.

Among major economic report expected at Wall Street on Friday, nonfarm payrolls added 175,000 jobs in February after adding an upwardly revised 129,000 (from 113,000) in January. The consensus expected an increase of 163,000. Private payrolls were a little lighter, up 162,000 in February after adding 145,000 in January. The consensus expected private payrolls to increase by 170,000. Over the last several weeks. The unemployment rate, meanwhile, ticked up to 6.7% from 6.6% as more people entered the labor force in search of jobs.

The U.S. trade deficit widened in January to $39.10 billion from an upwardly revised $39.00 billion (from $38.7 billion) in December. The consensus expected the trade deficit to fall to $37.30 billion. The goods deficit rose to $59.30 billion from $58.70 billion, a gain of $0.70 billion. The services surplus increased by $0.50 billion in January to $20.20 billion. Exports increased 0.6% in January to $192.50 billion. Almost all of the increase can be attributed to a $1.80 billion increase in exports of nonmonetary gold and a $0.20 billion increase in artwork sales.

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Separately, consumer credit increased by $13.70 billion in January after increasing a downwardly revised $15.90 billion (from $18.80 billion) in December. The consensus expected consumer credit to increase by $11.80 billion in January.

Among major stocks under focus, Skullcandy shares shot up more than 24% after earnings released late Thursday topped expectations. Another big gainer was Big Lots which jumped 23% after the company's top line beat Wall Street expectations.

Crude Oil futures closed higher on Friday, 07 March 2014 at Nymex. Prices rose after data showed U.S. nonfarm payrolls rose more than expected in February, but prices ended nearly flat for the week as fading worries about an imminent conflict in Ukraine pressured prices in recent days.

Crude for April delivery rose $1.02, or 1%, to settle at $102.58 a barrel on the New York Mercantile Exchange. Prices ended a penny below last Friday's settlement of $102.59, following seven-consecutive weeks of gains.

Bullion prices ended substantially lower on Friday, 07 March 2014. Gold futures closed 1% lower on Friday, suffering from their biggest one-day point and%age loss in more than a week, after a closely-watched jobs report signaled stronger-than-expected employment trends, dulling the metal's investment appeal.

Gold for April delivery fell $13.60, or 1%, to settle at $1,338.20 an ounce on the Comex division of the New York Mercantile Exchange. The contract was trading around $1,351, near Thursday's settlement, immediately before the jobs data. For the week, prices held onto a gain of around 1.3%. May silver sank nearly 65 cents, or 3%, to end at $20.93 an ounce following a 1.4% climb a day earlier. Prices have lost about 1.5% week to date.

Participation was a bit below average as 710 million shares changed hands at the NYSE.

Indian ADRs ended mostly lower on Friday. In the IT space, Infosys slipped 4.19% at $60.37 and Wipro declined 2.82% at $13.76. In the banking space, ICICI Bank rose 3.23% at $40.30 and HDFC Bank gained 5.13% at $37.33. In the other sectors, Tata Motors slipped 1.96% at $34.01 and Dr Reddy's Laboratories plunged 5.49% at $43.90.

There is no economic data on Monday's schedule.

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First Published: Mar 10 2014 | 9:33 AM IST

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