For the week indices end in mixed note
U.S. stocks closed higher on Friday, 01 March 2019 with the S&P 500 finishing above 2,800 for the first time since Nov. 8, on news that trade negotiations between the U.S. and China may conclude as soon as in two weeks. However, the latest data on U.S. manufacturing disappointed, tempering investors' optimism.
The Dow Jones Industrial Average gained 110.32 points, or 0.4%, to 26,026.32, while the S&P 500 index rose 19.20 points, or 0.7%, to 2,803.69. The Nasdaq Composite Index advanced 62.82 points, or 0.8%, to 7,595.35.
For the week, the S&P 500 gained 0.4% and the Nasdaq added 0.9% while the Dow shed about 0.1% to snap its nine-week winning streak, the longest since May 1995.
Hope of an imminent conclusion to Sino-American trade negotiations in the next couple of weeks was among the factors sparking buying interest.
Among data expected on Friday, the Institute for Supply Management's manufacturing index fell to 54.2% in February, below economists' expectations of 55.5%. It also marked the slowest pace of growth since the election of President Trump in November 2016. Markit's manufacturing PMI also disappointed, coming in at 53.0 in February, after hitting 53.7 in January.
The Commerce Department reported that the PCE inflation index rose 0.1% in December, compared with the 0.4% increase in November, above estimates of a 0.4% decline. The 12-month change in prices remained steady at 1.9%.
Seaparately, sentiment came in below economists' expectations, with the University of Michigan's index came in at 93.8, versus expectations of 95.6.
The weaker-than-expected data prompted the dollar, as measured by the ICE U.S. Dollar to give up its earlier gains, but it then moved higher, looking to erase nearly all of its weekly loss. The index was up 0.3% at 96.468 as gold futures settled. Strength in the greenback can pressure prices for commodities, which are traded in the dollar.
Crude oil futures finished sharply lower on Friday, 01 March 2019 with U.S. and global benchmark prices down roughly 3% for the week as traders focused on a backdrop of weak U.S. economic data and record domestic production. Data showing a drop in OPEC output to its lowest in four years failed to support prices. Members of the Organization of the Petroleum Exporting Countries pumped 30.68 million barrels a day in February, down 300,000 barrels a day from a month earlier and the lowest since 2015.
On Friday, April West Texas Intermediate crude fell $1.42, or 2.5%, to settle at $55.80 a barrel on the New York Mercantile Exchange. The contract lost about 2.6% for the week. Based on the front-month contracts, prices climbed 6.4% for the month of February 2019.
Bullion prices ended lower at Comex on Friday, 01 March 2019 at Comex. Gold futures dropped below the key $1,300 mark on Friday to settle at their lowest in a month and half, down over 2% from a week agothe sharpest weekly fall since August. An overall risk-on sentiment, which boosted U.S. and global stocks, as well as strength in the U.S. dollar worked to dull demand for the precious metal.
April gold fell $16.90, or 1.3%, to settle at $1,299.20 an ounce. For the week, bullion was down about 2.5%. May silver settled at $15.256 an ounce, down 2.4% for the session, with prices losing around 4.1% for the week.
U.S. Treasuries closed out the week on a lower note, sending yields higher across the curve. The 2-yr yield increased five basis points to 2.55%, and the 10-yr yield increased four basis points to 2.76%.
Looking ahead, investors will receive Construction Spending for December and auto and truck sales on Monday.
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