Sunday, September 13, 2009

Wall St ends 5 days of gains

       US stocks broke a five-day winning streak on Friday on a drop in crude oil prices but posted solid gains for the week.
       Data showing astronger-thanexpected rise in consumer sentiment and a bright outlook from shipper FedEx on Friday were not enough to motivate buyers in an equities market recently saturated with good news, analysts said.
       October crude oil futures fell nearly 4% to settle at $69.29 a barrel due to a higher-than-expected rise in refined fuel inventory.
       "Both equities and oil are exhausted.Money has been coming out of the dollar into equities and holding up energy all this week," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
       But he added that as long as the US dollar remains weak, stocks will not see a hefty correction since cash was moving out of the dollar and into risk-associated assets. The US dollar fell to a one-year low against major currencies on Friday.
       The Dow Jones industrial average lost 22.07 points, or 0.23%, at 9,605.41. The Standard & Poor's 500 Index shed 1.41 points, or 0.14%, at 1,042.73. The Nasdaq Composite Index fell 3.12 points, or 0.15%, at 2,080.90.
       For the week, the Dow was up 1.7%,the S&P was up 2.6%, and the Nasdaq was up 3.1%.
       Reacting to the decline in US crude,Chevron Corp fell 1% to $70.75 and was the top drag on the Dow. Exxon Mobil also shed 1% to $69.98.
       Among the gainers, FedEx rose 6.4%to $77.32 after raising its first-quarter profit view. The outlook also lifted rival UPS 4.4% to $58.80.
       Another piece of optimistic news came from the Reuters/University of Michigan Surveys of Consumers, which showed that consumer sentiment rose more than expected in early September, moving to its strongest level in three months. But market reaction was muted.

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