U.S. Stocks End Mixed as Dollar, Bonds Decline: Markets Wrap

All you need to know about what’s moving global markets this morning.

14 Sep 2019, 02:32 AM IST

U.S. Stocks End Mixed as Dollar, Bonds Decline: Markets Wrap

Traders react after the closing bell on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

(Bloomberg) -- U.S. stocks finished the week mixed as Treasury yields jumped to six-week highs and the dollar slipped.

All three major U.S. indexes still closed higher for a third consecutive week after being whipsawed by a rotation from growth to value shares by some investors. Apple weighed on the Nasdaq Friday. Equity indexes in Europe and Asia finished the week in the green thanks to easing trade fears and a new round of central bank stimulus.

“We’re going to see volatility in the market,” said Alan Adelman, a senior fund manager at Frost Investment Advisors, which oversees $4.7 billion. “We’ve seen it this week -- it may not come in absolute price moves -- but we’re going to see volatility.”

The pound posted the biggest weekly gain since May after the Times reported possible progress in Brexit negotiations related to the contentious Irish backstop. Prime Minister Boris Johnson will meet EU President Jean-Claude Juncker next week. The euro strengened this week and most government bonds retreated in the wake of the European Central Bank’s moves to support growth, with one policy maker saying a new easing package was a possible mistake.

Optimism over a trade deal is growing ahead of expected high-level talks next month between the world’s two largest economies.

“With holiday spending on the horizon and inflation at bay, we could continue to see momentum in the retail sector,” said Mike Loewengart, vice president of investment strategy at E*TRADE Financial Corp. “A healthy consumer can help inject some energy into other sectors of the economy. That said, trade tensions are a key focal point and rising tariffs between the U.S. and China could threaten this critical indicator.”

Elsewhere, WTI crude fluctuated around $55 a barrel, poised for a weekly drop following a warning from the International Energy Agency of a “daunting” surplus of crude in 2020.

Here are the main moves in markets:

Stocks

The S&P 500 Index declined 0.1% to 3,007.28 as of 4:03 p.m. New York time, the largest drop in more than a week.

The Dow Jones Industrial Average rose 0.1% to 27,218.90, reaching the highest in more than six weeks on its eighth consecutive advance.

The Nasdaq Composite Index fell 0.2% to 8,176.72, the largest drop in more than a week.

The Stoxx Europe 600 Index increased 0.3% to 391.79, the highest in 10 weeks.

Germany’s DAX Index jumped 0.5% to 12,468.53, hitting the highest in more than seven weeks with its eighth consecutive advance.

Currencies

The Bloomberg Dollar Spot Index declined 0.2% to 1,206.52, the lowest in three weeks.

Bonds

The yield on two-year Treasuries rose eight basis points to 1.80%, the highest in more than six weeks.

The yield on 10-year Treasuries climbed 13 basis points to 1.90%, reaching the highest in more than six weeks on its eighth straight advance and the biggest surge in almost three years.

Germany’s 10-year yield gained seven basis points to -0.45%, the highest in more than six weeks on the largest advance in more than a week.

Commodities

West Texas Intermediate crude fell 0.3% to $54.95 a barrel, the lowest in more than a week.

Gold weakened 0.8% to $1,487.01 an ounce.

--With assistance from Andrew Cinko and Laura Curtis.

To contact the reporters on this story: Vildana Hajric in New York at vhajric1@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Dave Liedtka