Indices snap the longest weekly rally this year
US stocks rose modestly on Friday, 13 June 2014 but trading was choppy with news out of Iraq resulting in price swings in late trade. The U.S. stock market finished the week with the biggest losses in two months, snapping the longest weekly rally this year. On Friday, the main benchmarks Investors turned cautious this week after an intensifying sectarian conflict in Iraq sent oil prices soaring. After the initial negative reaction to the disappointing consumer sentiment data, the market staged a modest rebound.
The Dow Jones Industrial Average added 41.49 points, or 0.3%, to 16,775.58. The blue-chip index lost 0.9% over the past five days. The Nasdaq Composite ended the day up 13.02 points, or 0.3% at 4,310.65 and declined 0.3% over the week. The S&P 500 closed 6.04 points, or 0.3%, higher at 1,936.15, but recorded a 0.7% loss over the week.
Six out of tens ectors ended higher led by technology and industrials sectors.
In deal news, OpenTable shares soared 48% after Priceline Group agreed to buy restaurant booking service for $2.6 billion in cash. Priceline shares closed 3% lower.
Intel Corp. jumped 6.8% after the company lifted its second-quarter revenue outlook, citing improved demand for PCs.
In U.S. economic news on Friday, producer prices unexpectedly sank in May, while consumer sentiment data showed a decline in June to the lowest level in three months.
The Producer Price Index for May declined 0.2%. That was lower than the consensus estimate, which called for an increase of 0.6%. The downturn in May was attributed to a 0.2% decline in the indexes for final demand services and final demand goods. Excluding food and energy, core PPI declined 0.1%, which was also lower than the 0.1% increase projected by the consensus estimate.
The preliminary reading for the University of Michigan Consumer Sentiment report for June dipped to 81.2 from the final reading of 81.9 for May. The June figure was the lowest reading since March and it fell short of the consensus estimate, which was pegged at 82.9.
Bullion prices settled little higher on Friday, 13 June 2014 at Comex. Gold futures settled only slightly higher for the session but scored a gain of nearly 2% for the week as a rally a day earlier on growing turmoil in Iraq helped lift prices to their highest settlement in three weeks.
Gold for August delivery rose 10 cents to settle at $1,274.10 an ounce on the Comex division of the New York Mercantile Exchange, trading in a tight range between a high of $1,277.60 and a low of $1,270.90. For the week, prices climbed 1.7%. July silver tacked on 12 cents, or 0.6%, to end at $19.655 an ounce. It gained of roughly 3.5% on the week.
Crude oil futures rallied on Friday, 13 June 2014 at NYmex and tallied their biggest weekly gain of the year, with the U .S. benchmark holding ground around a nine-month high in the wake of continued violence in Iraq.
July crude oil added 38 cents, or 0.4%, to settle at $106.91 a barrel on the New York Mercantile Exchange after touching a high of $107.68 in electronic trading. Prices gained 4.1% on the week.
Treasuries registered slim losses with the 10-yr yield climbing one basis point to 2.60%.
Light participation continued plaguing the market with just over 560 million shares changing hands at the NYSE.
On Monday, the Empire Manufacturing survey for June (consensus 12.8) will be released at 8:30 ET, while April Net Long-Term TIC Flows will cross the wires at 9:00 ET. In addition, May Industrial Production (consensus 0.5%) and Capacity Utilization (consensus 78.9%) will be announced at 9:15 ET, while the NAHB Housing Market Index for June (consensus 46) will be reported at 10:00 ET.
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