Financials and energy led the declines
U.S. stocks rebounded from a sharp morning selloff, but still closed lower on Thursday, 12 January 2017 with the Nasdaq snapping a seven-day winning streak as investors paused before the start of earnings season and a lack of policy detail in President-elect Donald Trump's first formal news conference a day ago. Equity markets have been trading mostly sideways as investors begin to question the run-up in stock prices following the election on Trump's promises of fiscal stimulus.
The Dow Jones Industrial Average closed down 63.28 points, or 0.3%, at 19,891.00, after trading down by as many as 184 points earlier in the session. The Nasdaq Composite Index which had been down by as many as 67 points earlier, finished down 16.16 points, or 0.3%, at 5,547.49, retreating from its record close set on Wednesday, and snapping a streak of seven sessions of gains. The S&P 500 index fell 4.88 points, or 0.2%, to finish at 2,270.44 with seven out of 11 main sectors trading lower.
The declines were broad-based, with 22 of the 30 components trading lower. Financials and energy led the declines. Walt Disney and J.P. Morgan Chase which reports earnings Friday morning, led the losses.
The ICE Dollar Index slid 0.6% to 101.22, trading around its lowest level in a month.
The sharp dollar drop came after Trump on Wednesday, in his first full-scale press conference since July, offered few details on his administration's plans for economic stimulus, trade policy and tax reforms, but instead focused on railing against news outlets. Investors had hoped for more clarity on his policies to keep the dollar and stock rally going.
Thursday's pullback in equities also come as St. Louis Fed President James Bullard said fiscal proposals discussed by Trump aren't likely to take hold until 2018 or 2019. He also said the U.S. economic environment remains one in which low interest rates are prevalent.
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The market's reaction to weekly jobless claims and import prices ahead of the opening bell was subdued. Both data releases pointed to continued improvement in the labor market and an uptick in inflation due to higher oil prices.
AMong stocks under focus, Boeing fell 0.7% after reports that India's SpiceJet is expected to purchase about 90 jets from the company for a total of $10 billion.
Data out of China implying that the country's oil demand in November hit the second highest level on record, an average of 11.44 million barrels a day, also helped oil prices. That was 4.1% higher than the same month a year earlier.
And a weaker dollar following President-elect Donald Trump's press conference boosted energy prices. The ICE Dollar Index was down 0.4% at 101.36, after trading around its lowest level in almost a month.
It was mixed finish for bullion metals on Thursday, 12 January 2017 at Comex. Gold prices on Thursday hit a new seven-week high, as the dollar fell on disappointment that President-elect Donald Trump didn't provide details on his economic plans at a closely watched news conference. But prices for the yellow metal finished just short of the $1,200-an-ounce level. But silver ended marginally lower.
Gold for February delivery rose $3.20, or 0.3%, to settle at $1,199.80 an ounce, paring earlier gains that lifted it to a high of $1,207.20. The metal has gained in seven out of the last eight sessions. March silver fell less than half a cent to $16.825 an ounce.
Crude oil futures settled higher on Thursday, 12 January 2017 at Nymex with indications that major producers are cutting back output, strong demand growth in China and a weaker dollar prompting prices to extend gains into a second straight session. Natura-gas futures, meanwhile, marked their highest settlement in almost two weeks after data revealed a hefty drawdown in weekly U.S. supplies of the fuel.
On the New York Mercantile Exchange, February West Texas Intermediate crude climbed 76 cents, or 1.5%, to settle at $53.01 a barrel, after tapping a high of $53.50. Prices saw their highest settlement price since Friday. March Brent crude on London's ICE Futures exchange rose 91 cents, or 1.7%, to $56.01 a barrel. The moves build on almost 3% gains for both contracts on Wednesday.
U.S. Treasuries traded with gains for most of today's session but declined following the $12 bln 30-year Treasury auction and closed well off their intraday highs. The 10-yr yield finished lower by two basis points at 2.36%.
Tomorrow's economic data will include December PPI and Retail Sales at 8:30 am ET while November Business Inventories and the Michigan Sentiment Index will cross the wires at 10:00 am ET.
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