S&P 500 drops for ninth straight session
U.S. stocks failed to defend gains on Friday, 04 November 2016 with the S&P 500 ending lower for a ninth straight session in the longest losing streak since December 1980. Equity indices began the day on a modestly higher note as a mixed reading of the Employment Situation Report for October did little to alter the rate hike picture for December.
But the major averages finished near session lows as six sectors ended in the red. The consumer staples sector ended behind financials and energy while health care, materials and industrials led the pack.
The Dow Jones Industrial Average slid 42.39 points, or 0.2%, to finish at 17,888.28 for a weekly drop of 1.5%. The Nasdaq Composite Index fell 12.04 points, or 0.2%, to end at 5,046.37, also marking a nine-day drop while closing out the week 2.8% lower. The S&P 500 shed 3.48 points, or 0.2%, to close at 2,085.18, falling 1.9% for the week. The streak has been long, but shallow, with the index shedding just a little more than 3% over the nine-day run.
Latest job report from Labor Department showed that the U.S. added 161,000 new jobs in October, and the unemployment rate fell to 4.9% from 5%, though remained near an eight-year low. Hourly pay, meanwhile, has climbed by 2.8% over the past year, the fastest 12-month rise since June 2009.The report reflected a tight labor market that's forced firms scrambling to fill open positions to increase pay at the fastest pace since 2009.
Separate report showed that the U.S. trade gap shrank to $36.4 billion from a revised $40.5 billion in August.
Atlanta Fed President Dennis Lockhart, who is scheduled to step down in February, said interest rates would stabilize at a lower level than in past expansions after very gradual hikes over the next two years.
Crude oil futures ended at a more-than-six-week low on Friday, 04 November 2016 posting a nearly 10% weekly slide as traders dealt with uncertainty surrounding a plan by the Organization of the Petroleum Exporting Countries to curb output. Prices fell sharply after reports that Saudi Arabia threatened to raise its oil production if Iran refused cap its output.
West Texas Intermediate crude for delivery in December fell 59 cents, or 1.3%, to settle at $44/barrel o\n the New York Mercantile Exchange, after tapping a low of $43.57. Futures lost 9.5% for the week, which marked the largest weekly percentage loss since mid-January.
January Brent crude fell 77 cents, or 1.7%, to $45.58 a barrel, with prices based on the most-active contracts down by more than 8% for the week, FactSet data show. Prices for the January contract lost just over 10% for the week. The settlement was the lowest since early September.
Crude oil prices fell to a fresh 6-week low following comments from Saudi Arabia, stating they would raise output to 11-12 mln barrels/day with the intention of bringing prices down if Iran does not agree to limit its own oil supply. Iran continues to take the position that they should be exempt from an OPEC oil output cut due to years of missed revenue from previously imposed sanctions by America. Saudi Arabia's most recent production levels were around 10.5-10.7 mln barrels/day.
Bullion prices finished on a mixed mode on Friday, 4 November 2016 at Comex. Gold futures settled with a modest gain on Friday to tally more than 2% climb for the week, as uncertainty surrounding the U.K.'s exit from the European Union and the coming U.S. election raised the metal's attractiveness as a haven. U.S. data showed a sizable October gain in new jobs, further lifting the prospects for a Federal Reserve interest-rate increase in Decembera prospect that's weighed on gold in the past.
Gold for December delivery rose $1.20, or less than 0.1%, to settle at $1,304.50 an ounce. Prices saw weekly gain of 2.2%, which marked the metal's fourth-consecutive weekly gain. December silver reversed from earlier gains to lost 4.5 cents, or 0.2%, to end at $18.371 an ounce, paring its weekly rise to roughly 3.2%.
Treasuries finished on a higher note as the long end of the curve outperformed. The yield on the 2-yr note finished lower by two basis points (0.79%) while the yield on the 10-yr note ended lower by four basis points (1.77%).
Friday's trading volume was above the average of 861 million as more than 892 million shares changed hands at the NYSE floor.
Monday's economic calendar is limited to Consumer Credit for September (consensus $17.5 billion), which will cross the wires at 15:00 ET.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
