The energy sector was the weakest performer of the day
US stocks ended in a mixed mode on Thursday, 06 September 2018. The S&P 500 and the Nasdaq finished lower for a third session Thursday on mounting concerns about contagion from a handful of struggling emerging economies on top of unresolved trade tension. Technology stocks again weighed on the U.S. market while energy shares also fell on weak crude prices. The Dow gained.
The Dow Jones Industrial Average erased earlier losses to rise 20.88 points to 25,995.87. The S&P 500 index shed 10.55 points, or 0.4%, to 2,878.05 and the Nasdaq Composite Index slid 72.45 points, or 0.9%, to 7,922.73.
The energy sector was the weakest performer of the day followed by the tech sector.
Thursday's session began on a flat note, but technology shares soon began selling off, pulling the S&P 500 into negative territory. Tech giants like Facebook, Apple and Alphabet lost between 1.3% and 2.8%, and Amazon dropped 1.8%.
Turmoil in Argentina and Turkey, as their currencies continue to sink on deteriorating confidence, is dragging on the global market as investors fear a spillover effect on other healthier emerging markets and beyond.
On the trade front, the U.S. and Canada continued high-stakes negotiations in the effort to revamp the North American Free Trade Agreement, which President Donald Trump said he is prepared to move forward with even without Canada's participation.Those trade tensions come amid the start of a public comment on the Trump administration's plan to impose tariffs on an additional $200 billion of Chinese goods. Reports indicated that Trump could impose the tariffs as soon as this week.
Commodities priced in dollars often trade inversely with the currency, as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies. Certainly, mild dollar weakness has helped gold to reclaim $1,200 this week. The metal maintained that ground as the ICE U.S. Dollar fell less than 0.1% to 95.103 on Thursday, barely lower week to date.
A report on Thursday on the U.S. private-sector payroll showed that the nation created a seasonally adjusted 163,000 jobs in August, down from 217,000 in July. The figure, which comes ahead of the more closely followed government employment report due Friday, is also below the 182,000 jobs expected.
Separately, the Institute for Supply Management said its nonmanufacturing index climbed to 58.5% in August from 55.7% in the prior month. ALso, U.S. weekly jobless claims fell to 203,000 the lowest mark since the final weeks of 1969.
The economic data did little to sway expectations for higher U.S. interest rates. Higher rates are a dollar booster and a drag on nonyielding bullion.
Bullion prices settled mixed at Comex on Thursday, 06 September 2018 at Comex. Gold futures settled higher on Thursday for a second straight session, extending their climb above $1,200 an ounce but failing to hold onto a week-to-date gain as the leading dollar index stabilized following a flurry of U.S. economic data.
December gold rose $3, or nearly 0.3%, to settle at $1,204.30 an ounce. It had settled beneath the psychologically important level of $1,200 earlier this week for the first time since 23 August 2018. The metal was so far looking at a nearly 0.2% loss for the week. December silver fell 3.9 cents, or 0.3%, to $14.181 an ounce.
Crude oil declined on Thursday, 06 September 2018 with U.S. prices at their lowest settlement in more than two weeks, pressured by concerns over a potential decline in global demand on the back of the U.S. trade dispute with China and economic woes in emerging markets. Price pressures also included sizable weekly gains in U.S. stockpiles of gasoline and distillates, which include heating oil, outweighing support from a hefty decline in domestic crude inventories as well as ongoing expectations for tighter crude supplies tied to U.S. sanctions on Iranian oil that begin in early November.
October West Texas Intermediate crude , the U.S. oil benchmark, lost 95 cents, or 1.4%, to settle at $67.77 a barrel on the New York Mercantile Exchange. That was the lowest finish for the contract since 21 AUg 2018.
November Brent. the global benchmark, fell 77 cents, or 1%, to settle at $76.50 a barrel, following a loss of 1.2% in the previous session on the ICE Futures Europe exchange.
Elsewhere, U.S. Treasuries rallied on Thursday, sending the benchmark 10-yr yield two basis points lower to 2.88%.
Looking ahead, investors will receive the Employment Situation report for August on Friday, with the consensus expecting an increase of 187,000 in nonfarm payrolls, an increase of 0.2% in average hourly earnings, and an unemployment rate of 3.9%, unchanged from July.
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