At closing bell, the Dow Jones Industrial Average index rose 34.30 points, or 0.12%, to 27,931.02. The S&P 500 index lost 0.58 points, or 0.02%, to 3,372.85. The tech-heavy Nasdaq Composite Index dropped 23.20 points, or 0.21%, to 11,019.30.
For the week, the Dow Jones Industrial Average was up 1.8% and the S&P 500 index rose 0.6%. The Nasdaq Index rose 0.1%.
Stocks were mixed in the morning after official data showed US retail sales increased less than expected last month and could slow further due to spiralling COVID-19 cases and a reduction in unemployment benefit cheques. Separately, readings showed that US factory output increased more than expected in July but remained below pre-pandemic levels while consumer sentiment was largely steady in the first half of August.
Meanwhile, the continued deadlock between congressional Democrats and the White House over a coronavirus aid package could be limiting upside for the market. Negotiations to extend measures, including $600 a week in additional unemployment benefits that expired at the end of July have remained stalled since the end of last week. President Donald Trump last weekend signed executive orders that would partially extend some measures, but those face questions about their legality and logistics.
ECONOMIC NEWS: US Retail Sales Growth Rate Eases In July Amid Pullback In Auto Sales- US retail sales advanced by 1.2% in July after soaring by an upwardly revised 8.4% in June, with a pullback in auto sales partly offsetting strength in other areas, the Commerce Department reported on Friday. The weaker than expected retail sales growth came as sales by motor vehicle and parts dealers slumped by 1.2% in July after leaping by 9.1% in June. Excluding auto sales, retail sales surged up by 1.9% in July after spiking by 8.3% in June. Ex-auto sales were expected to increase by 1.3%. Sales by electronics and appliances stores helped lead the bigger than expected jump in ex-auto sales, skyrocketing by 22.9%. Miscellaneous store retailers, gas stations, clothing and accessories stores and food services and drinking places also saw notable sales growth. Core retail sales, which exclude automobiles, gasoline, building materials and food services, surged up by 1.4% in July after spiking by 6.0% in June. Reflecting the rebound in sales over the past few months, total retail sales in July were up by 2.7% compared to the same month a year ago.
US Industrial Production Grows At Slower Pace In July- US industrial production surged up by 3.0% in July after soaring by an upwardly revised 5.7% in June, reflecting sharp increases in manufacturing and utilities output, the Federal Reserve reported on Friday. Despite the substantial increases seen over the past two months, the Fed noted production is still 8.4% below its pre-pandemic February level. Manufacturing output continued to improve in July, jumping by 3.4% in July after spiking by 7.4% in June. The Fed said most major industries posted increases, though they were much smaller in magnitude than in June. Production of motor vehicles and parts skyrocketed by 28.3%, while factory production elsewhere advanced by 1.6%. The report said utilities output also surged up by 3.3% in July after leaping by 2.0% in June, as unusually warm temperatures increased the demand for air conditioning. Mining production showed a more modest increase, climbing by 0.8% in July, although that comes after five consecutive monthly decreases. The Fed also said capacity utilization climbed to 70.6% in July from a revised 68.5% in June.
US Business Inventories Fall 1.1% In June- US business inventories slumped by 1.1% in June after tumbling by 2.3% in May, according to a report released by the Commerce Department on Friday. Retail inventories led the way lower, plunging by 2.6% in June after plummeting by 6.2% in the previous month. The report said wholesale inventories also slid by 1.4% in June after falling by 1.2% in May, while manufacturing inventories rose by 0.6% after inching up by 0.2%.
Among Indian ADR, Vedanta declined 1.51% to $6.51, Wipro shed 1.86% to $4.21, Tata Motors shed 5.16% to $8.27, WNS Holdings dropped 0.62% to $65.84, INFOSYS sank 0.47% to $12.72, ICICI Bank declined 3.17% to $9.76, and HDFC Bank was down 1.02% to $46.67. Azure Power Global added 1.4% to $21.75 and Dr Reddys Labs added 0.15% to $60.79.
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