Investing.com - U.S. stocks fell on Friday as mixed data
prompted investors to avoid equities after a week of volatile
sessions marked by uncertainty over the fate of Federal Reserve
At the close of U.S. trading, the Dow Jones Industrial Average
finished down 0.70%, the S&P 500 index ended down 0.59% as
well, while the Nasdaq Composite index fell 0.63%.
A Bank of Japan decision earlier this week to leave monetary policy
unchanged after months of rolling out stimulus measures has roiled
markets in the past few days largely by fanning uncertainties as to
whether the Federal Reserve will follow suit and scale backs
Stimulus measures such as the Fed's monthly USD85 billion
bond-buying program send stock prices rising by design to spur
recovery, though talk of their dismantling has frayed nerves in
recent sessions, sending stocks through peaks and valleys.
Mixed data released on Friday prompted investors to avoid equities
until the Federal Reserve provides some indications as to when
stimulus measures may begin to unwind.
The U.S. Bureau of Labor Statistics reported earlier that the U.S.
producer price index rose 0.5% in May, beating expectations for a
0.1% rise after a 0.7% decline the previous month.
The core producer price index, which is stripped of the more
volatile food and energy costs, rose 0.1% last month, in line with
expectations, after a 0.1% gain in April.
However, the Federal Reserve reported earlier industrial production
in the U.S. came in flat in May, missing expectations for a 0.2%
rise though up from a 0.4% contraction the previous month.
Weaker-than-expected consumer sentiment data pushed stocks lower as
Thomson Reuters/University of Michigan's preliminary consumer
sentiment index fell to 82.7 in June from 84.5 in May.
Analysts were expecting the reading to remain unchanged at 84.5.
Leading Dow Jones Industrial Average performers included Verizon
Communications, up 0.87%, Merck, up 0.10%, and Home Depot, up
The Dow Jones Industrial Average's worst performers included
American Express, down 2.98%, DuPont, down 2.25%, and JPMorgan
Chase, down 1.94%.
European indices, meanwhile, finished higher.
After the close of European trade, the EURO STOXX 50 rose 0.21%,
France's CAC 40 rose 0.19%, while Germany's DAX 30 finished up
0.40%. Meanwhile, in the U.K. the FTSE 100 finished up 0.06%.
The Federal Reserve will begin a two-day monetary policy meeting on
Tuesday followed by a decision on interest rates and a press
conference with Chairman Ben Bernanke on Wednesday.
Markets will be eager to see if the U.S. monetary authority will
clarify policy uncertainty.
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