Canada’s main stock index and US markets opened slightly lower on Friday as tepid economic data weighed, a day after all three Wall Street indexes closed at record highs for the first time since 1999.
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Oil prices fluctuated in choppy trading, but remained around the $47 (U.S.) mark as speculation intensified that oil producers may try to work out ways to support prices in an oversupplied market.
All three indexes closed at record highs on Thursday, the first time they have done so simultaneously since 1999. All benchmark indexes hit all-time intraday highs on Monday.
The S&P 500 energy index rose 0.75 per cent and was the top percentage gainer among eight of the benchmark’s 10 major indices that were in the black.
Among the S&P 500’s biggest drags was Dow Chemical, which fell 2.4 per cent to US$52.33 (RM210.40), while DuPont declined 1.9 per cent to US$67.66, a day after European Union regulators opened a full investigation of their US$130 billion merger agreement.
The Dow Jones industrial average .DJI fell 58.18 points, or 0.31 percent, to 18,555.34, the S&P 500 .SPX lost 4.56 points, or 0.21 percent, to 2,181.23 and the Nasdaq Composite .IXIC dropped 5.81 points, or 0.11 percent, to 5,222.59.
The weak data could also discourage the Federal Reserve from raising interest rates this year.
However, traders are largely skeptical of a rate hike in the near term, with USA inflation below the Fed’s 2 percent target and as central banks worldwide unleash stimulus programs to support their economies.
However, traders remain skeptical of a rate hike as USA inflation remains below the Fed’s 2 per cent target and central banks worldwide unleash stimulus programs to support their economies.
Traders are pricing in a 41.6 per cent chance of a rate hike in December, down from 45 per cent on Thursday, according to CME Group’s FedWatch tool.
Oil major Exxon rose 0.3 percent, while rival Chevron was up 0.7 percent.
Post Properties rose 8.5 per cent after agreeing to be bought by Mid-America Apartment Communities for about $3.88 billion.
Valeant rose 5.5 per cent to $26.30 after Mizuho raised the stock’s rating to “neutral” from “underperform”.
Advancing issues outnumbered decliners on the NYSE by 2,082 to 743. West Texas Intermediate crude oil, the USA benchmark, rose 1.9% to $45.33 a barrel.
Despite the lackluster performance, the tech-heavy Nasdaq ended the session at a new record closing high.
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The yield on the 10-year Treasury note rose to 1.54% from 1.51% Friday.
