The financial and energy sectors led the day's losses
U.S. stocks closed lower on Friday, 16 September 2016 but preserved gains for the week, as oil prices dropped and investors fretted ahead of central bank policy meetings next week. Anxiety ahead of next week's central-bank meetings weighed on sentiment. However, for the week, major stock-index gauges eked out small gains, in part, thanks to Apple Inc.'s stellar climb.
The Dow Jones Industrial Average closed down 88.68 points, or 0.5%, to 18,123.80, for a weekly gain of 0.2%. The S&P 500 index under fire from the energy and financials sectors, declined 8.11 points, or 0.4%, to close at 2,139.15, for a weekly gain of 0.5%. The Nasdaq Composite index slipped 5.12 points, or 0.1%, to finish at 5,244.57. The tech-heavy index logged a weekly gain of 2.3% as Apple shares rose more than 11% on the week.
The financial and energy sectors led the day's losses, while utilities and health-care shares finished in positive territory. The blue-chip gauge was led by a 3% rise in shares of Intel Corp. while a 2.5% fall in United Technology Corp. topped laggards.
Apple slid 0.6% after a four-day advance that propelled it 12% higher, amid growing buzz over its updated iPhone. It is the best product-launch linked performance for the stock since 2011 when the company introduced the iPhone 4S, according to Bespoke Investment Group. Apple's 11.4% weekly jump is also its sharpest since October 2011, FactSet data show.
The Federal Open Market Committee and the Bank of Japan are both scheduled to wrap up their policy meetings on Wednesday. The BOJ is seen as easing policy slightly, while the Fed is widely expected to keep rates on hold.
Economic data at Wall Street on Friday showed that the U.S. Consumer Price Index rose 0.2% in August, outpacing a forecast for 0.1% advance. Excluding the volatile food and energy categories, so-called core consumer prices climbed 0.3%. Consumer inflation is firming (as is producer price inflation) and there is some data-based rationalization in the core CPI rate for the Fed to raise the fed funds rate.
Both central banks are eyeing divergent directions for their respective monetary policies, when their policy-setting committees separately convene Sept. 20-21. Their actions, or simply their commentary, could influence their currencies and dollar-priced assets like metals.
Separately, the preliminary reading of the University of Michigan Consumer Sentiment Survey for September was unchanged from the final August reading, holding at 89.8. and that negotiations were only just beginning.
Crudde oil futures settled at lows last seen more than a month ago on Friday, 16 September 2016, suffering a sharp loss for the week as traders braced for an expected increase in oil exports from Libya and Nigeria.
October West Texas Intermediate crude fell 88 cents, or 2%, to settle at $43.03 a barrel on the New York Mercantile Exchange. November Brent crude on London's ICE Futures exchange fell 82 cents, or 1.8%, to $45.77 a barrel. That was its lowest finish month to date. It fell about 4.7% for the week.
Nigeria and Libya are both preparing to ramp up their oil exports. Royal Dutch Shell and Exxon Mobil have both lifted force majeure on Nigerian exports after militants had caused the shut-in of supply. Libya's state oil company also lifted curbs on sales from three ports on Wednesday. The news on the two OPEC producers come just over a week ahead of an informal meeting of major oil producers on the sidelines of an energy forum in Algeria set for Sept. 26-28.
Bullion prices ended lower ar Comex on Friday, 16 September 2016. Gold futures finished at their lowest level in almost three months on Friday, logging a seventh drop in eight sessions to finish the week with a nearly 2% loss as the U.S. dollar climbed sharply in the run up to key central bank policy meetings next week.A report on inflation muddied the short-term fate for U.S. interest rates ahead of separate meetings of the Federal Reserve and Bank of Japan. Attention was fixed on inflation data and any implications it has for Fed decision-making. Quadruple witching, when certain futures and options expire at the same time, added volatility to the trading session, prompting prices to end closer to the day's lows.
December gold fell $7.80, or 0.6%, to $1,310.20 an ounce. Prices saw the lowest settlement since June 23 and lost 1.8% for the week. December silver also fell by 17.9 cents, or 0.9%, to $18.862 an ounce, down around 2.6% for the week.
Treasuries ended on a mixed note with the short end of the curve demonstrating relative weakness. The yield on the 2-yr note rose four basis points to 0.77% while the yield on the 10-yr note finished flat at 1.69%. The spread between the 2-yr and 10-yr note expanded to 92 basis points from 89 basis points last Friday. Today's participation was above the recent average as more than two billion shares changed hands on the NYSE floor.
Friday's participation was above the recent average as more than two billion shares changed hands on the NYSE floor.
Monday's economic data will be limited to the NAHB Housing Market Index (consensus 59), which will cross the wires at 10:00 ET.
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