U.S. retail sales grew better than expected in June, but the University of Michigan consumer confidence index unexpectedly fell in July instead of rising to a five-month low, consumer inflation expectations for the coming year hit a new high in August 2008, causing the market to worry that the current economic expansion may not be sustainable. The three major U.S. stock indexes turned lower in early trading after the release of the retail data, which collectively opened higher, and the yield on U.S. bonds, which had been falling for several days, rebounded.
The energy sector continued to lead the decline in the broader U.S. stock market. Individual stocks, Dow Chemical, which was downgraded by Bank of America to a neutral rating to a hold, expanded to more than 3% in midday trading, leading the decline in the Dow components; will be included in the S&P 500 index on the 21st of this month, the research and development of the new crown vaccine pharmaceutical company Moderna once rose more than 11%; second quarter earnings and revenues were higher than expected State Street rose more than 4% in the session. Chinese stocks, drop travel had fallen nearly 5%; by Morgan Stanley will be downgraded from hold to hold Tencent Music once fell nearly 6%; rumors have been applied for dual listing in Hong Kong in May ideal car had fallen more than 3% during the day; rumors in March to apply for a secondary listing in Hong Kong news of Azera Motors once fell nearly 3%, while the 7th of this month has been dual listing in Hong Kong Peng car rose more than 1%.
After the release of U.S. retail data, the dollar index, which had turned lower during the session, retained its gains, falling only one day throughout the week and accumulating gains. Most cryptocurrencies fell as a presidential working group led by U.S. Treasury Secretary Yellen meets next week to discuss stable coins, with only Bitcoin standing alone with an intraday rally, but all cumulatively lower throughout the week, with some cryptocurrencies such as ethereum down more than 10%. U.S. bond yields continued to decline cumulatively throughout the week, despite halting their streak of declines on Friday.
In commodities, crude oil rebounded after two consecutive days of losses, with some commentators saying it looked like a technical adjustment as traders may have realized that the sell-off in consumer confidence data alone was a bit of an overreaction, but crude oil was still down the most for the week in at least two months or so; industrial metals were mixed, with copper falling back, while tin, which has been hitting decade-highs for days, finally broke its record high set a decade ago and rose ahead of other metals for the week, analysts said. Said, tin prices are driven by supply concerns, the world’s third largest tin producer Myanmar into a political crisis, while struggling to contain the deterioration of the new domestic crown epidemic, another tin-producing country Rwanda requires companies to lay off 50% of the workforce, affecting the mining industry; in the dollar and U.S. bond yields upward impact, the precious metals fell, gold is still up for the whole week, silver and other precious metals are down.
In the European market, European stocks continue to fall, mining, oil and gas, banking stocks led the decline, announced core earnings below market expectations of telecommunications giant Ericsson plunged, the full week of oil and gas stocks also led the decline. European bond yields were lower on Friday and throughout the week.
Three major U.S. stock indexes end three-week gain streak Dow falls nearly 300 points off intraday highs Nasdaq falls four straight to three-week low Energy sector continues to lead week’s losses down nearly 8%
The three major U.S. stock indexes opened lower overall, turning lower less than an hour after the opening bell. The S&P 500 index rose more than 0.3% at the beginning of the day when it set a new daily high, and fell nearly 0.9% at midday when it set a new daily low. Dow Jones Industrial Average at the beginning of the session to set a new intraday high when the day rose slightly more than 100 points, down nearly 340 points at lunchtime to refresh the daily low. The Nasdaq Composite Index rose more than 0.5% at the beginning of the session to a new daily high, and fell nearly 0.9% at midday to a new daily low.
Finally, the three major stock indexes closed down collectively for the second day this week after Tuesday. The Dow closed down 299.17 points, or 0.86%, at 34,687.85 points, the largest closing decline since June 18, and a new closing low since July 8. The S&P fell for two days in a row, closing down 0.75% at 4327.16 points, a new low since July 8 and the biggest drop since July 8. The Nasdaq closed down 0.8% at 14,427.24, a new low since June 25 and the biggest closing decline since June 28.
The value-cap-dominated small-cap index Russell 2000 also opened lower, closing down 1.24%, underperforming the broader market. The tech-heavy Nasdaq 100 index closed down 0.77%.
This week, the three major stock indexes have accumulated losses, ending a three-week streak of gains, the S&P fell about 0.97%, the Dow fell 0.52%, the Nasdaq fell 1.87%; Russell 2000 fell 5.12%, down three weeks in a row; Nasdaq 100 fell 0.98%, ending an eight-week streak.
Of the 11 major sectors of the S&P 500, seven closed lower and four closed higher on Friday. Declining sectors, down nearly 2.8% in energy continued to lead the decline, materials, finance, non-essential consumer goods were down more than 1%, information technology fell nearly 1%, the smallest decline in telecommunications services fell nearly 0.6%. Up in the sector, up about 1% of the utilities led the rise, the other sectors rose by about 0.1% to 0.2%. This week, the energy sector plunged 7.7%, far below the performance of other sectors, the second and third largest declines in non-essential consumer goods and materials fell more than 2%, while utilities rose more than 2% a week to perform the best.
Dow components, Dow Chemical fell about 3% on Friday, Chevron, Disney, JPMorgan Chase, Boeing, Goldman Sachs fell more than 2%. The semiconductor industry and banking index fell more than 2%, underperforming the three major stock indexes, but biotechnology stocks bucked the market, the Nasdaq Biotechnology Index closed up about 1%.
Leading technology stocks continued to fall, Tesla fell nearly 1%. six major technology stocks in FAANMG, Nifty fell more than 2%, Apple, Amazon fell more than 1%, Facebook fell nearly 1%, Microsoft fell 0.1%, Google parent company Alphabet slightly lower.
Among energy stocks, Calon Oil fell about 10% and Occidental Petroleum dropped more than 4%. Nine Purple New Energy fell about 13%. Among chip stocks, Nvidia fell more than 4% and Applied Materials dropped more than 3%.
Among other volatile stocks, Moderna closed up more than 10%, and State Street rose nearly 3%.
Top Chinese stocks were mostly down, with Chinese ETFs KWEB and CQQQ closing down about 2.7% and 1.8%, respectively. Education stocks High Way and Good Future fell more than 11% and 9%, respectively. Drip closed down more than 3%; Tencent Music fell more than 5%, Ideal Auto and Azera dropped 2%, while Xiaopeng Auto rose more than 1%.
In Europe, the pan-European stock index Euro Stoxx 600 fell for three days in a row, hitting a new low for two consecutive days since last Thursday, with Ericsson plunging 9.4%, the worst-performing component. Among the sectors, mining stocks in the basic resources fell 2.8% to lead the decline, banks, automotive and parts and oil and gas are down more than 1% decline in the top. Major European stock indexes fell for the second consecutive day on Friday and the third day this week.
Both the Stoxx 600 and major European stock indexes accumulated losses this week, with German stocks ending a three-week streak of gains. Among the sectors, basic resources also fell in the top, down more than 2%, oil and gas and travel and leisure are down more than 4% to lead the decline.
10-year U.S. bond yields end two-day losing streak intraday, still down three weeks in a row
U.S. 10-year benchmark Treasury yields kept rising most of the time on Friday, the U.S. stocks before the day when the new daily high measured 1.34%, up about 4 basis points during the day, the first climb in the last three days, since the early U.S. stocks gradually retracted gains to the U.S. stocks closed at 1.29% above, almost flat on Thursday’s closing level.
The 10-year U.S. bond yield fell again this week by more than 6 basis points, the third consecutive week of cumulative decline, and is the eighth week of cumulative yield decline in the last nine weeks. By the end of New York, in addition to the 2-year U.S. bonds, other maturities this week, U.S. bond yields are cumulative decline.
European Treasuries mostly continued to rise in price on Friday, with British debt prices rebounding from Thursday’s retreat to lead the yield decline. The British 10-year benchmark Treasury yield fell 3.7 basis points during the day to 0.626%, while the German bund yield fell 2 basis points during the same period to 0.353%. This week, British bond yields fell by 2.9 basis points, German bond yields fell by 6 basis points, all three consecutive weeks of cumulative decline.
U.S. oil out of nearly a month low still the largest weekly decline in nearly four months, the largest weekly decline in nearly two months in the cloth oil
International crude oil futures ended a two-day losing streak. U.S. WTI August crude oil futures closed up $0.16, or 0.22 percent, at $71.81 per barrel, out of the lows set on Thursday since June 18, when the spot month contract closed. Brent September crude futures closed up $0.12, or 0.16 percent, at $73.59/barrel, after hitting a new low since July 7 on Thursday.
U.S. oil fell 3.7 percent for the week, the biggest one-week decline since the week of March 26, and Brent oil fell 2.6 percent, the biggest one-week decline since the week of May 21.
NYMEX August gasoline futures closed up nearly 0.2% at $2.25/gallon, down 1.7% for the week and down two weeks in a row. NYMEX August natural gas futures closed up 1.7% at $3.67 per million British thermal units, up almost zero for the week and down 0.7% for last week.
The U.S. dollar index turned up during the session, up four days this week Bitcoin turned up after nearly breaking $31,000 Ether fell more than 10% for the week
The ICE dollar index (DXY), which tracks the exchange rate of a basket of six major U.S. dollar currencies, fluctuated slightly between gains and losses on Friday, Asian markets and European stocks had turned down during the day, European stocks fell 0.1% during the day when the new daily low fell below 92.60, U.S. stocks kept up after the release of retail sales data before the market, U.S. stocks rose above 92.70 to 92.756 after a new daily high in early trading, up more than 0.14% during the day.
By Friday’s U.S. stock market close, the dollar index was above 92.70, up less than 0.1% intraday, up for the fourth day this week, up nearly 0.7% for the week, erasing last week’s losses; the Bloomberg Dollar Spot Index rose 0.1%, also up for the week.
Bitcoin (BTC) approached $31,000 during the European session, hitting a new intraday low for the second day in a row since June 26, and has since rebounded, regaining $32,200 at midday in the U.S. to refresh its daily high, up about 4% from the intraday low, and closing the U.S. session at about $31,900, up about 1% in the last 24 hours, the only mainstream cryptocurrency to rise.
Ether (ETH), the second-largest cryptocurrency by market capitalization after Bitcoin, closed the U.S. session below $1,920, down more than 0.4 percent in the last 24 hours.
CoinMarketCap data shows that most mainstream cryptocurrencies continued to fall on Friday, with Dogcoin (DOGE), the eighth largest cryptocurrency by market capitalization, down more than 4.7% in the last 24 hours, BNB, the fourth largest cryptocurrency, down nearly 3%, Cardano (ADA), the fifth largest cryptocurrency, down more than 2%, and Bitcoin Cash (BCH), the 12th largest cryptocurrency, down nearly 2%. (BCH) fell nearly 2%, the 13th largest cryptocurrency Litecoin (LTC) fell nearly 0.5%, and the sixth largest cryptocurrency Ripple (XRP) fell nearly 0.4%.
Cryptocurrencies all accumulated losses this week, with DOGE down nearly 19.8%, BCH down nearly 11%, ADA down more than 10.5%, ETH down more than 10.1%, LTC down more than 6.9%, XRP down more than 4.6%, BTC down more than 4.5%, and BNB down 1.9%.
Copper held $9,400 but fell for the week, while tin hit a record high for the week, up 6% for four weeks Gold ended a three-game winning streak and fell to a three-week high for the week, still up four weeks in a row
London base metals futures were mixed on Friday, with copper and lead falling back after Thursday’s rally, with copper holding the $9,400 barrier. Aluminum fell for three days in a row, hitting a new low of more than a week. And Lun tin rose for five days in a row, hitting a new record high after four consecutive days at a new ten-year high, rising above $33,600 during the day. Zinc and nickel rose for two days in a row, with zinc hitting a one-month high and nickel hitting a new four-month high for the second day this week.
Base metals were mixed cumulatively this week. Tin and zinc rose for four weeks in a row, with tin up 6% for the week, well ahead of the other base metals, breaking the $32,000 and $33,000 thousand-digit barrier for the week. Nickel rose for two weeks in a row. And copper gave back most of last week’s losses. Lead ended a three-week streak of gains, and aluminum fell for two weeks.
New York gold futures ended a three-day streak of gains, COMEX August gold futures closed down 0.8% at $1815.00 per ounce, down from the high set on Thursday since June 16. This cycle gold is still up about 0.2%, the fourth consecutive week of gains, but the rise is much less than last week. Last week, gold rose 1.53%, the biggest one-week gain since the week of May 21. New York silver and platinum futures stopped a two-day streak of gains, silver futures closed down 2.3%, down 1.7% for the week, down two weeks in a row. Platinum futures closed down 2.6 percent, still up 1.2 percent for the week. Palladium fell for four days in a row, closing down 3.4%, down 6.6% for the week, and platinum both fell for the first time in three weeks in a single week.