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Wall Street closed slightly higher on Friday in a corrective mode. The yield on the benchmark 10-year U.S. Treasury Note declined, bringing an end to the consistent fall seen in the week. Investors remain apprehensive about the rising crude oil price and its bearing on the Fed’s policies. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 75.86 points to close at 34,576.59. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative territory.
The tech-heavy Nasdaq Composite increased 12.69 points or 0.1% to 13,761.53.
The S&P 500 rose 0.1%, or 6.35 points, to end at 4,457.49. Seven of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Communication Services Select Sector SPDR (XLC) rose 1%, 0.9% and 0.3%, respectively, while the Real Estate Select Sector SPDR (XLRE) fell 0.7%.
The fear-gauge CBOE Volatility Index (VIX) decreased 3.9% to 13.84. A total of 8.9 billion shares were traded on Friday, lower than the last 20-session average of 10 billion. Advancers outnumbered decliners on the NYSE by a 1.14-to-1 ratio. On the Nasdaq, a 1.19-to-1 ratio favored the declining issues.
10-Year Treasury Yield Goes Down
The yield on the benchmark 10-year treasury note fell to 4.26% on Friday after rising through the week and closing at 4.27% in the previous session. Lower yields from risk-free treasury bonds indicate future flows are profitable in the current valuation, especially for large-cap growth stocks like tech stocks, and move in the opposite direction with prices. The Friday fall, however, was more a corrective move in the bond market as yields continued to rise last week in the apprehension of an economic slowdown. Further talks of rate hikes will push bond yields higher, but in the interim, stocks did better on Friday.
Oil Prices Continue to Rise
Throughout the week, the market has been feeling the heat of rising energy prices born out of Saudi’s decision to not increase production till the end of 2023. The nature of the energy sector ensures that it drives inflation when it grows, and investors have turned apprehensive that this might impact the monetary policy decision-making of the Fed.
Even though energy became the biggest gainer on Friday and drove the market, market participants remained concerned that the Fed would resume interest rate hikes from its November meeting. They are, however, still hopeful that the September meeting, concluding on the 20th, would keep the rates at their current level.
The U.S. Census Bureau reported that Wholesale Inventories for July had fallen 0.2%. The previously reported number for June was revised down from a 0.5% decline to a 0.7% fall.
Per the Federal Reserve, Consumer Credit for July had increased in the order of $10.4 billion against a consensus of $16 billion for the period. The number for June was revised down to $14 billion from previously reported $17.9 billion.
Weekly Roundup
All three widely followed indexes closed a losing week last Friday. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite declined 0.8%, 1.3% and 1.9%, respectively. Both the S&P 500 and Nasdaq snapped two straight weeks of gains. Business throughout the holiday-shortened week was driven by growing fear about returning inflation, riding on fast-rising oil prices and an eventual slowdown of the economy.
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Stock Market News for Sep 11, 2023
Wall Street closed slightly higher on Friday in a corrective mode. The yield on the benchmark 10-year U.S. Treasury Note declined, bringing an end to the consistent fall seen in the week. Investors remain apprehensive about the rising crude oil price and its bearing on the Fed’s policies. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 75.86 points to close at 34,576.59. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative territory.
The tech-heavy Nasdaq Composite increased 12.69 points or 0.1% to 13,761.53.
The S&P 500 rose 0.1%, or 6.35 points, to end at 4,457.49. Seven of the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU) and the Communication Services Select Sector SPDR (XLC) rose 1%, 0.9% and 0.3%, respectively, while the Real Estate Select Sector SPDR (XLRE) fell 0.7%.
The fear-gauge CBOE Volatility Index (VIX) decreased 3.9% to 13.84. A total of 8.9 billion shares were traded on Friday, lower than the last 20-session average of 10 billion. Advancers outnumbered decliners on the NYSE by a 1.14-to-1 ratio. On the Nasdaq, a 1.19-to-1 ratio favored the declining issues.
10-Year Treasury Yield Goes Down
The yield on the benchmark 10-year treasury note fell to 4.26% on Friday after rising through the week and closing at 4.27% in the previous session. Lower yields from risk-free treasury bonds indicate future flows are profitable in the current valuation, especially for large-cap growth stocks like tech stocks, and move in the opposite direction with prices. The Friday fall, however, was more a corrective move in the bond market as yields continued to rise last week in the apprehension of an economic slowdown. Further talks of rate hikes will push bond yields higher, but in the interim, stocks did better on Friday.
Oil Prices Continue to Rise
Throughout the week, the market has been feeling the heat of rising energy prices born out of Saudi’s decision to not increase production till the end of 2023. The nature of the energy sector ensures that it drives inflation when it grows, and investors have turned apprehensive that this might impact the monetary policy decision-making of the Fed.
Even though energy became the biggest gainer on Friday and drove the market, market participants remained concerned that the Fed would resume interest rate hikes from its November meeting. They are, however, still hopeful that the September meeting, concluding on the 20th, would keep the rates at their current level.
Consequently, shares of Marathon Petroleum Corporation (MPC - Free Report) and PBF Energy Inc. (PBF - Free Report) advanced 2.9% and 5.7%, respectively. Each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The U.S. Census Bureau reported that Wholesale Inventories for July had fallen 0.2%. The previously reported number for June was revised down from a 0.5% decline to a 0.7% fall.
Per the Federal Reserve, Consumer Credit for July had increased in the order of $10.4 billion against a consensus of $16 billion for the period. The number for June was revised down to $14 billion from previously reported $17.9 billion.
Weekly Roundup
All three widely followed indexes closed a losing week last Friday. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite declined 0.8%, 1.3% and 1.9%, respectively. Both the S&P 500 and Nasdaq snapped two straight weeks of gains. Business throughout the holiday-shortened week was driven by growing fear about returning inflation, riding on fast-rising oil prices and an eventual slowdown of the economy.