US stock indexes edged lower in morning trading Wednesday, Sept. 7, 2016, weighed down by a slide in supermarket operators and other consumer-focused companies.
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ENERGY: Oil prices lost some of its overnight surge, which followed a report indicating fuel stockpiles fell precipitously last week. Investors were weighing the likelihood that the Federal Reserve will raise its key interest rate this year, following new remarks by a Fed bank president.
The European Central Bank (ECB) kept interest rates unchanged Thursday and lowered its growth forecasts for 2017 and 2018. NRG Energy fell 2.8%, and Transocean fell 2.6%.
The Standard & Poor’s 500 index shed 17 points, or 0.8%, to 2,163.
The sell-off in technology stocks weighed on the Nasdaq composite index, which fell 24.44 points, or 0.5%, to 5259.48.
“We have a good probability that we’re getting it by the end of the year”, Kinahan said.
A broad range of retailers, from department stores to fast-food chains, also notched losses, while most of the big gainers were oil production and drilling companies. In other energy trading, wholesale gasoline rose 7 cents, or 5.2 percent, to $1.42 a gallon.
Utilities stocks lagged the market early Friday as bond yields moved higher. As yields rise, bonds become more competitive options for investors seeking income. AT&T slid 64 cents, or 1.6 percent, to $40.55.
NEVER MIND: Williams Cos. fell 3.7 percent on news that Enterprise Products Partners has told the natural gas company it is no longer interested in a possible merger. Williams slid $1 to $30.15. Murphy Oil climbed $1.88, or 6.8 percent, to $29.73. The stock slid 77 cents to $4.03.
COSTLY DEFECT: General Motors fell 2.7 percent after the automaker said it is recalling about 4 million vehicles worldwide to fix an air bag software defect that has been linked to one death. The stock was the biggest decliner in the S&P 500 index, shedding $13.01 to $70.52. Restoration Hardware gained $1.94, or 5.5 percent, to $37.23. South Korea’s Kospi lost 1.3 percent to 2,036.07. Market bears have groused that major US stock-market indexes trading near record levels are not underpinned by strong corporate quarterly results and are likely due for a more pronounced selloff. It was the North’s fifth atomic test and the second in eight months. Japan called North Korea an “outlaw nation”. Asian markets were mostly lower Friday on disappointment about the European Central Bank’s decision to keep policy unchanged. Germany’s DAX fell 1 per cent, while France’s CAC 40 lost 1.1 per cent. Britain’s FTSE 100 was down 1.2 per cent. Materials fell 0.4%, with metals and mining shares ending 1% lower. Some traders said a nuclear test by North Korea had also hit sentiment. Imports expanded by an unexpectedly strong 1.5 percent, up from July’s 12.5 percent plunge.
ASIA’S DAY: Japan’s benchmark Nikkei 225 rebounded from an initial drop to finish little changed at 16,965.76.
The signs of a rough day appeared early on Friday as the market opened lower.
US stocks ended lower on Thursday after the European Central Bank failed to announce an extension of its program of asset purchases beyond March 2017, disappointing some who had expected the central bank to extent its program of asset purchases. Brent crude, used to price worldwide oils, was up $1.53, or 3.2 percent, to $49.51 in London.
European shares fell after the announcement, while the euro gained against the dollar and the region’s sovereign bonds came under pressure.
The dollar rose as investors speculated that a September rate hike had become more likely, and German 10-year bond yields rose above zero for the first time since June as investors assessed the difficulties that central banks face.
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ENERGY: Benchmark U.S. crude rose 68 cents to $46.18 per barrel in electronic trading on the New York Mercantile Exchange. Copper dipped a penny to 2.09 dollars a pound.
