The U.S. stock market stabilized on Friday after the Dow
plunged the most in 2013 on Thursday.
The catalyst for yesterday's sell-off centered on expectations
that the Federal Reserve will begin tapering its bond-buying
program at the September FOMC meeting. Concerns about the end of
the current QE program caused stocks, bonds, and commodities to
fall sharply, with the Dow shedding more than 300 points.
On Friday, the market was relatively calm, with the Dow and
S&P recording small gains and the Nasdaq recording a small
loss. Treasury prices, however, continued to plummet, triggering
a rise in yields.
The Dow Jones Industrial Average rose 43 points, or 0.29
percent, to 14,801.
The S&P 500 added 4 points, or 0.27 percent, to just below
The Nasdaq lost 7 points, or 0.22 percent, to 3,357.
Energy prices were lower again on Friday. Heading into the
closing bell, NYMEX crude futures were trading down 1.30 percent
to $93.90. Brent crude contracts were down 1.17 percent to
$100.95. Natural gas fell 2.37 percent on the day and was last
trading at $3.79.
Precious metals stabilized after plunging on Thursday. Late in
the day, COMEX gold futures were up 0.68 percent to $1,294.90.
Silver contracts were trading up 0.89 percent to $20.00. Copper
added better than 1 percent on the session and was last trading
In the grains complex, both corn and wheat fell on the day.
Corn futures were last down 0.76 percent while wheat lost 0.39
percent. Movers in soft commodities included sugar and lumber.
Sugar contracts rose 1.62 percent while lumber was up 1.21
Treasury prices continued to get hammered on Friday, pushing
up yields. Near the close, the iShares Barclays 20+ Year Treasury
Bond ETF (NYSE:
) was down 1.25 percent to $108.89.
The 2-Year Note was last yielding 0.36 percent. The yield on
the 5-Year Note was 1.40 percent. The 10-Year Note and 30-Year
Bond were yielding 2.50 percent and 3.56 percent,
The U.S. Dollar rose for the third day in a row. Near the
close of equities, the PowerShares DB US Dollar Index Bullish ETF
), which tracks the performance of the greenback versus a basket
of foreign currencies, was up 0.59 percent to $22.32.
The closely watched EUR/USD pair was last down 0.42 percent to
$1.3140. Other movers on the session included the USD/CAD, which
rose 0.62 percent, and the AUD/USD, which was up 0.77
Volatility and Volume
After surging on Thursday, the VIX retraced some of its gains
on Friday. Late in the day, the widely watched measure of
volatility expectations was down around 9 percent to 18.67.
Volume was heavy again on Friday. Around 233 million SPDR
S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 137
Spreadtrum Communications (NASDAQ:
) rose nearly 17 percent on Friday after the company received a
$28.50 per ADS cash offer from Tsinghua Unigroup Ltd.
OSI Systems (NASDAQ:
) jumped nearly 15 percent intra-day after the company reached a
favorable agreement with the Department of Homeland Security and
entered into an administrative agreement.
) jumped more than 10 percent on Friday after the Daily Mail
reported on takeover speculation surrounding the company.
) fell more than 9 percent after the company's fiscal
fourth-quarter earnings results missed analysts' consensus
Shares of Lumber Liquidators (NYSE:
) fell almost 7 percent on the day after breaking through its
50-day moving average on heavy volume.
Idenix Pharmaceuticals (NASDAQ:
) lost around 29 percent after the company said that it has
received verbal communication from the FDA requesting additional
preclinical safety data for IDX20963, a leading uridine
nucleotide prodrug candidate.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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