Technology and financial sectors weigh on broader market
US stocks ended in a mixed mode on Friday, 21 September 2018. The Dow Jones Industrial Average on Friday notched a second straight all-time high, but a slump in technology and internet-related stocks weighed on the broader market, pressuring the Nasdaq. The under performance of financial and technology shares weighed on market sentiments.
The Dow Jones Industrial Average rose 75.67 points, or 0.3%, to 26,732, after logging its first all-time high on Thursday since Jan. 26. However, the S&P 500 edged, lower, closing 1.27 points to 2,929.48, a rise of less than 0.1%. The Nasdaq Composite Index fell 41.28 points to 7,986.96, a decline of 0.5%.
For the week, the S&P 500 and the Dow added 0.9% and 2.3%, respectively, while the Nasdaq lost 0.3%.
A day before, on Thursday, gains came as jobless claims dropped to their lowest since November 1969, a sign of an extremely strong labor market. Separately, the Philadelphia Fed manufacturing index jumped more than expected in September, while an Index of Leading Economic Indicators suggested the U.S. economy could look forward to 3% economic growth in the second half of 2018.
In the latest data, a reading on the manufacturing sector rose to 55.6 in September from the previous reading of 54.7. A report on the services sector dipped to 52.9 from 54.8. Both are from IHS Markit.
The dollar index was up 0.4% at 94.25, shaving a portion from its weekly slide, which stands at about 0.7%. The dollar and commodity, which is chiefly priced in the U.S. currency, tend to move inversely.
Currency and metals market attention is fixed on next week's interest-rate decision. Fed policy makers will meet for a two-day meeting ending Sept. 26. The Fed has penciled in four moves in total this year and that means another hike is likely in December, though traders have shown some flashes of wavering confidence of late, citing trade uncertainty and global economic hiccups.
The Fed is also expected to update its expected rate moves for 2020 and even 2021, which could have implications for the dollar and gold.
Bullion prices ended mixed on Friday, 21 September 2018. Gold settled solidly lower Friday as a record climb for U.S. stocks and newfound buoyancy in the dollar combined to deliver a stiff headwind for bullion, ahead of a Federal Reserve meeting that is expected to result in higher rates next week.
December gold gave up $10, or 0.8%, at $1,201.30 an ounce. For the week, gold booked a razor-thin weekly gain of less than 0.1%. December silver rose by 5.4 cents, or 0.4%, to $14.359 an ounce. The contract was up 1.5% for the week.
Crude oil prices settled firmly higher on Friday, 21 Se[tember 2018 after briefly paring gains, as prices bounced around ahead of meeting of major oil producers in Algiers over the weekend. A report suggesting that major producers may increase production more in order to cover an expected shortfall in output from Iran briefly knocked prices lower.
November West Texas crude on its first full day as a front-month contract, added 46 cents, or 0.7%, to end at $70.78 a barrel on the New York Mercantile Exchange, but closing off its highs at $71.80. The contract marked a weekly gain of more 2.6%. Global benchmark November Brent added 10 cents, or 0.1%, to settle at $78.80, after also briefly turning negative. The contract gained 0.9% for the week.
Investors did not receive any notable economic data on Friday, and Monday's economic calendar is also blank.
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