Markets

Close Update: Dow Sets Record High as Trade-Sensitive Industrials Outperform

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Led by gains in trade-sensitive industrials as concerns about the problematic US/China trade relationship dissipate and demand for risk across global stock markets improves, the Dow set another record high at Friday's close and ended the week with its biggest weekly gain since July. The S&P 500 was flat on the day, but managed a 0.9% gain from last week, while weakness in the technology sector continued to plague the Nasdaq Composite, resulting in a lower close Friday and for the week.

China's restrained response to additional US tariffs fueled this week's strong performance in the industrial sector and two consecutive record highs for the Dow and S&P 500. Wall Street's euphoria Thursday reverberated throughout Asian and European equity markets overnight with China's Shanghai soaring 2.5% and Japan's Nikkei gaining close to 1% despite measures by the Bank of Japan to reign in its quantitative easing program.

Data released this morning was mixed as the preliminary September manufacturing PMI set a four-month high of 55.6 while the services sector slumped to an 18-month low of 52.9.

In related markets, investors' appetite for risk initially pushed the 10-year yield to 3.08% while gold traded for less than $1,200 per ounce as a result of the stronger dollar. Copper continued to benefit from the improved outlook for US/China trade and set a two-month high of $2.84.

European bourses were all higher with the weaker euro and British pound compensating for soft euro-zone manufacturing data. The UK FTSE-100 rallied by 1.67% to a two-week high in tandem with a dramatic correction in sterling after UK prime minister Theresa May told Brits that no deal is better than a bad deal. Facing criticism in parliament, May dug in her heels and demanded a mutually beneficial Brexit deal with the EC.

US MARKETS

Dow Jones Industrial Index was up 86.52 points (+0.32%)

S&P 500 was down 1.08 points (-0.04%)

Nasdaq Composite Index was down 41.28 points (-0.51%)

GLOBAL SENTIMENT

FTSE 100 was up 1.67%

Nikkei 225 was up 0.82%

Hang Seng Index was up 1.73%

Shanghai China Composite Index was up 2.50%

UPSIDE MOVERS

(+) OASM (+34.77%) Received positive opinion from EU recommending approval of Apealea combination

(+) EGC (+27.35%) Obtained two-thirds shareholder approval for merger with Cox Oil affiliates

(+) PLX (+20.83%) Phase 3 BRIDGE study produced positive preliminary results

DOWNSIDE MOVERS:

(-) GTXI (-92.27%) Phase 2 trial of Enobosarm fails to achieve primary endpoint

(-) TTNP (-56.67%) Priced $9.5 million stock offering

(-) ASM (-21.32%) Announced common stock offering

(-) PIR (-19.89%) Q2 loss expected to widen, sales forecast to drop 11.4% Y-O-Y

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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