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Stock market caps volatile week on lower note
09-Aug-19 16:15 ET
Dow -90.75 at 26287.44, Nasdaq -80.02 at 7959.15, S&P -19.44 at 2918.65

https://www.briefing.com/investor/markets/stock-market-update/2019/8/9/stock-market-caps-volatile-week-on-lower-note.htm

[BRIEFING.COM] The stock market wrapped up a volatile week on lower note, leaving the S&P 500 down 0.7% on Friday. Familiar trade concerns appeared to hinder buying conviction after a three-day advance in the benchmark index.

The Dow Jones Industrial Average lost 0.3%, the Nasdaq Composite lost 1.0%, and the Russell 2000 lost 1.3%.

President Trump seemingly fed into the nagging trade angst when he told reporters that the U.S. will not be doing business with Huawei and that September trade talks could get canceled. None of these statements really surprised the market, but the prospect of U.S.-China relations further deteriorating kept some buyers sidelined on Friday.

Eight of the 11 S&P 500 sectors finished lower, led by the energy (-1.3%) and information technology (-1.3%) sectors. Energy stocks fell despite the sharp increase in oil prices ($54.61/bbl, +$2.09, +4.0%), while the tech sector was pressured by shares of semiconductor companies, many of which derive substantial revenue from China. The Philadelphia Semiconductor Index fell 1.8%.

Conversely, the defensive-oriented health care (+0.2%), real estate (+0.1%), and utilities (+0.04%) sectors were the lone sectors that finished higher.

Uber (UBER 40.05, -2.92) shares fell 6.8% after the company reported a wider-than-expected $5.2 billion quarterly loss. Revenue also came up short of estimates, but today's decline simply retraced much of yesterday's 8% rally.

In other corporate news, Amgen (AMGN 196.25, +11.02) shares spiked 6.0% following a positive ruling regarding its Enbrel business. DXC Technology (DXC 35.91, -15.74, -30.5%) plunged over 30% after it cut its FY20 outlook, while Dropbox (DBX 18.71, -2.75) fell 12.8% despite providing decent results and guidance.

U.S. Treasuries finished slightly lower, pushing yields higher across the curve. The 2-yr yield and the 10-yr yield increased two basis points each to 1.63% and 1.73%, respectively. The U.S. Dollar Index declined 0.1% to 97.54.

Reviewing Friday's lone economic report, the Producer Price Index for July:

The index for final demand increased 0.2% m/m in July (Briefing.com consensus +0.2%) while the index for final demand, excluding food and energy, decreased 0.1% m/m (Briefing.com consensus +0.2%). The m/m readings left the index for final demand up 1.7% yr/yr, unchanged from June. The index remains at its lowest level since January 2017. Core PPI was up 2.1% yr/yr, down from 2.3% in June.
The key takeaway from the report is that inflationary pressure remains muted.

Looking ahead, Monday's economic data will be limited to the Treasury Budget for July.

Nasdaq Composite +20.0% YTD
S&P 500 +16.4% YTD
Dow Jones Industrial Average +12.7% YTD
Russell 2000 +12.2% YTD