The U.S. stock market came
under more selling pressure on Friday
, with all three major market averages finishing in the red. A
number of losses over the last 5 days sent the S&P 500 out
with a better than 1 percent decline on the week.
Although the sell-off has thus far been gradual, trepidation
appears to be rising on Wall Street over the Federal Reserve's
timeline for tapering its quantitative easing program. Commentary
from the central bank this week has re-introduced the possibility
that the Fed will scale back its bond purchases as early as the
September FOMC meeting.
Investors, who have become accustomed to constant liquidity
injections by the central bank to support the economic recovery,
are unsure how the economy may fare in the absence of
quantitative easing. Nevertheless, the losses were contained
during the week's final trading session, with the largest decline
being a 73 point pullback in the Dow.
The Dow Jones Industrial Average shed 73 points, or 0.47
percent, to close at 15,425.
The S&P 500 lost 6 points, or 0.36 percent, to 1,691.
The Nasdaq fell 9 points, or 0.25 percent, to close the week
Wholesale inventories fell 0.2 percent for the month of June
after declining 0.6 percent in May. This marked the third
consecutive monthly decline in inventories and the fourth drop on
the year. The consensus expected wholesale inventories to rise
0.4 percent in June.
Crude oil snapped a
5-day losing streak on Friday
. In late afternoon trade, NYMEX crude futures were up 2.50
percent to $105.99 while Brent crude contracts had added 1.45
percent to $108.23. Natural gas contracts were last trading down
2.34 percent on the session to $3.22.
Precious metals rose again on Friday. Heading into the closing
bell for equities, COMEX gold futures were up 0.18 percent to
$1,312.20 on CME GlOBEX. Silver futures had climbed 1.15 percent
and were last trading at $20.43 in the electronic session. Copper
followed a strong rally on Thursday with a gain of 1.28 percent
The entire grains complex fell to end the trading week,
although losses were mostly contained. Corn futures were last
down 1.41 percent while wheat lost 1.21 percent. Movers in soft
commodities, where volatility was limited, included sugar and
orange juice. Sugar futures rose a little less than 1 percent
while orange juice concentrate futures were down almost 3
A look at the technology inside Tesla's Model
Long-term Treasury prices were up slightly on Friday
afternoon. At last check, the iShares Barclays 20+ Year Treasury
Bond ETF (NYSE:
) had risen 0.12 percent to $107.21.
Yields were as follows near the end of the trading day: The
2-Year Note yield was at 0.30 percent while the yield on the
5-Year Note was 1.35 percent. The 10-Year Note and 30-Year Bond
were yielding 2.57 percent and 3.63 percent, respectively.
The U.S. Dollar was last trading slightly higher on the
session. Heading into the closing bell for equities, the
PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign equities, had added 0.14 percent to $21.94.
closely watched EUR/USD pair
had lost 0.35 percent to $1.3340. Other movers included the
USD/CAD, which fell 0.38 percent, and the AUD/USD, which was last
up 1.02 percent.
Bill Ackman causing more waves at J.C.
Volatility and Volume
The CBOE Volatility Index (VIX) recorded another moderate gain
on Friday as stocks fell. Late in the day, the VIX was trading up
a little better than 5 percent to 13.38.
Volume remained light to end the trading week. August is
normally a sleepy month in the market as many investors are on
Summer vacation. Around 78 million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 133
Record results for the company's fiscal fourth-quarter sent
shares of Ubiquiti Networks (NASDAQ:
) up around 26 percent on the day.
NPS Pharmaceuticals (NASDAQ:
) had leaped almost 27 percent near the close after the company's
fiscal Q2 results and outlook impressed Wall Street.
) had surged better than 19 percent late on Friday during its
second-day as a publicly traded company. In its market debut on
Thursday, the IPO jumped 38 percent.
Air Methods (NASDAQ:
) climbed around 16 percent on the session despite missing Wall
Street estimates for the company's fiscal second-quarter.
Analysts said that Air Methods' business is set for a strong
rebound in the second-half of the year.
Tableau Software (NYSE:
) reported better-than-expected Q2 results, sending the shares up
more than 12 percent late on Friday.
Disappointing results from Chinese ADR Youku Tudou (NYSE:
) sent that stock skidding around 8 percent to end the trading
Rare-earth miner Molycorp (NYSE:
) delivered second-quarter results which failed to impress
investors. Near the close, shares of the Greenwood Village,
Colorado-based company were down more than 10 percent.
Wright Medical Group (NASDAQ:
) lost around 8 percent on Friday after the company's Augment
Bone Graft failed to receive regulatory approval from the FDA.
The agency said that the company will have to conduct another
clinical trial in a "well-defined high-risk target population"
before seeking approval again.
Mobile Mini (NASDAQ:
), a provider of portable storage solutions, released
second-quarter earnings results that failed to impress investors.
Near the close, the stock had lost roughly 7 percent.
Private-education provider DeVry (NYSE:
) fell in the wake of the company's fiscal Q4 financial results.
At last check, the stock had shed more than 7 percent on the
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