Indices log their biggest weekly gains in months
U.S. stocks ended Friday's choppy session slightly higher on 09 October 2015 and logged their biggest weekly gains in months. The S&P 500 posted its biggest gain since last December, rising in four out of five sessions. The Friday session made for a quiet finish to a week that saw all ten sectors register gains. The S&P 500 began the trading day above its flat line, but slipped into the red around midday. The index traded just below its unchanged level into the afternoon, but turned green during the final hour.
The S&P 500 closed 1.46 points, or less than 0.1%, higher at 2,014.89 and has gained 3.3% over the week. The Dow Jones Industrial Average rose for a sixth consecutive session. The blue-chip index added 33.74 points, or 0.2%, to 17,084.49 and booked a 3.7% gain over the week, its biggest gain since February. The Nasdaq Composite ended the day up 19.68 points, or 0.4%, at 4,830.47 and advanced 2.6% over the week.
With the benchmark index settling near its flat line, five sectors registered gains while the other five ended lower. Most notably, energy and financials spent the day below their flat lines, which prevented the market from stretching its legs.
On the flip side, the technology sector finished in the lead, giving a boost to the Nasdaq Composite. Top-weighted sector components like Apple, Alphabet, Facebook and Oracle gained. Elsewhere, the health care sector ettled just behind technology to lock in a weekly gain.
Similar to stocks, Treasuries spent the day inside narrow ranges, posting slim gains, with the 10-yr yield slipping one basis point to 2.10%. P> Late Thursday, the Federal Open Market Committee released the minutes from the meeting last month in which it had decided to hold rates near zero. Investors interpreted the minutes as further proof that U.S. interest rates may remain on hold for the rest of the year.
Against that backdrop, the U.S. dollar index moved lower on Friday, offering support for metals prices, including gold. Gold doesn't yield interest and competes more easily against assets that do, like Treasurys, when rates are pinned near zero. And, like most commodities, the metal is priced in dollars and becomes cheaper to buy for those using stronger currencies when the greenback softens.
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Economic data at Wall Street was limited to Import/Export Prices and Wholesale Inventories. Export prices, excluding agriculture, decreased 0.6% in September after decreasing 1.3% in the prior reading. Excluding oil, import prices decreased 0.3%, which followed last month's decrease of 0.4%. Wholesale inventories increased 0.1% in August after a downwardly revised 0.3% decline (from -0.1%) while the consensus expected no change.
Durable wholesale inventories increased 0.3% after declining 0.1% in July with a 0.3% decline in automotive inventories offsetting a 0.9% increase in electrical inventories and a 0.5% increase in machinery inventories. Nondurable wholesale inventories declined 0.2% in August after declining 0.5% in July with lower oil prices helping reduce petroleum inventories (-1.4%) for the second month in a row. Meanwhile, farm product inventories declined 3.1% after declining 1.2% in July.
Bullion prices ended higher at Comex on Friday, 09 October 2015. Gold prices rallied on Friday to settle at a level not seen since late August as expectations for a further delay in U.S. interest-rate hikes weakened the U.S. dollar, lifting the metal's investment appeal.
Gold for December delivery jumped $11.60, or 1%, to settle at $1,155.90 an ounce on Comex for its highest settlement since 21 August. For the week, prices logged a gain of 1.7%. Silver for the same month put on 5.2 cents, or 0.3%, to $15.818 an ounce, ending about 3.6% higher on the week.
Oil futures logged a 9% weekly gain on Friday, 09 October 2015 supported by weakness in the U.S. dollar, the conflict in Syria and the possibility of a collaboration among the major oil producers, but prices still settled under the key $50 level. Recent reports of possible collaboration among major oil producers, including those outside of the Organization of the Petroleum Exporting Countries bloc, such as Russia, have helped sentiment as well.
Data showing a fall in U.S. oil-rig counts was also supportive, while expectations that slowing U.S. refinery activity will help expand the glut of crude supplies capped price gains.
November West Texas Intermediate crude rose 20 cents, or 0.4%, to settle at $49.63 a barrel on the New York Mercantile Exchange, the highest settlement since 21 July 2015. Prices had traded as high as $50.92 during the session.
Monday's session will be free of economic data.
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