Small-cap and tech stocks led trading declines
The U.S. stock market ended a choppy trading session lower on Monday, 06 October 2014 as investors appeared to book profits after last week's rally. Small-cap and tech stocks led trading declines. In the absence of economic and corporate news, stock prices gyrated as indexes hovered near key technical levels.
The Dow Jones Industrial Average fell 17.72 points, or 0.1%, to 16,991.97. The Nasdaq Composite lost 20.82 points, or 0.5%, to 4,454.80. The S&P 500 closed 3.1 points, or 0.2%, lower at 1,964.82.
Eight out of ten sectors ended in the red. The biggest winner was the telecom services sector while the biggest loser was the consumer discretionary sector.
The major indices hit their best levels of the session within fifteen minutes of the opening bell and then spent the rest of the morning retracing those gains. The afternoon session produced a half-hearted rebound try, yet the major indices couldn't stake a position on positive ground when the closing bell rang.
Among major stocks under focus, H-P shares climbed 4.7% as the company said it plans to split into two, separating businesses: personal-computer and printer businesses from its corporate hardware and services operations. Tesla Motors is set to unveil its Model 3 mass-market car and new versions of its Model S sedan at an event on Thursday, Tesla shares were up 2.1%.
The ICE dollar index, a measure of the U.S. currency against a basket of six major rivals, rose 1.2% last week. The index retreated on Monday.
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The pro-democracy demonstrations in Hong Kong are still simmering in the market place. The sense of traders is that the situation has not worsened but has not improved, either. Any escalation of the conflict could quickly put the matter back on the front burner and usher in keener risk aversion in the market place.
U.S. economic data released Monday was light and included the employment trends index. That data had no impact on market prices. In the background was a report that the World Bank cut its 2014 and 2015 GDP views for China and news that German factory orders declined 5.7% in August.
Bullion metals ended higher at Comex on Monday, 06 October 2014 at Comex. Gold futures gained ground on Monday, closing back above the $1,200-an-ounce level as the dollar rally took a respite. A rallying U.S. dollar has whacked gold and other dollar-priced commodities in the past three months, but traders think the greenback's gains are overdone, and they sound upbeat on gold looking into next year.
Gold for December delivery rose $14.40 an ounce, or 1.2%, to close at $1,207.30 an ounce. On Friday, gold turned negative for 2014, as an encouraging jobs report weighed on haven demand. December silver gained 40 cents, or 0.4%, to $17.23 an ounce.
Crude prices ended moderately higher at Nymex on Monday, 06 October 2014 at Nymex as the dollar rally paused. Traders blamed the surging U.S. dollar for weakness across commodity markets last week. A stronger currency can weigh on commodities priced in dollars by making them more expensive to users of other currencies.
Light and sweet crude for November delivery rose 60 cents, or 0.7%, to $90.34 a barrel, rebounding from a six-month low set in the biggest down week since early August.
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