Mixed finish for US stocks

Major indices posted weekly gains though

US stocks ended mixed on Friday, 15 August 2014 trimming or erasing losses after falling on news of a clash between Ukrainian and Russian military units on Ukraine soil. The stock market finished an upbeat week on a cautious note after a late-morning headline interrupted an extension of this week's rally. Despite the intraday weakness, the major averages were able to climb off their lows into the close. Major indices posted weekly gains.

The Dow Jones Industrial Average trimmed a triple-digit loss to end the day down 50.67 points, or 0.3%, at 16,662.91, making for a weekly rise of 0.7%. The Nasdaq Composite returned to positive territory, rising 11.93 points, or 0.3%, to 4,464.93 and notching a 2.2% weekly advance. The S&P 500 fell 0.12 point, or less than 0.1%, to end at 1,955.06 after trading as low as 1,941.40, leaving the index with a 1.2% weekly gain.

Six sectors registered losses with telecom services finishing at the bottom of the leaderboard. Meanwhile, heavily-weighted consumer discretionary, financials, and industrials also ended among the laggards.

There were reports on Friday after the spokesman for Ukraine's National Security and Defense Council said the country's forces destroyed a part of an armed convoy from Russia.

Investors shrugged off a preliminary August reading on the University of Michigan/Thomson Reuters consumer-sentiment index that showed it at the lowest level since November.

Among economic data expected at Wall Street, Producer prices increased 0.1% in July after increasing 0.4% in June, while the consensus expected an increase of 0.2% As expected, energy prices declined in July, falling 0.6%. Excluding food and energy, core PPI rose 0.2% for a second consecutive month, as expected by the consensus. The Empire Manufacturing Survey for August registered a reading of 14.7, which was below the prior month's reading of 25.6

The June net long-term TIC flows report showed an $18.70 billion outflow of foreign capital from U.S.-denominated assets to follow last month's inflow of $19.40 billion. Industrial production increased 0.4% in July after an upwardly revised 0.4% (from 0.2%) gain in June, while the consensus expected an increase of 0.3%. Also, the University of Michigan Consumer Sentiment Index fell to 79.2 in the August preliminary reading from 81.8 in July, while the consensus expected an increase to 81.7.

The 10-year Treasury note yield fell more than 5 basis points to less than 2.35% as investors sought safety by buying Treasurys. Yields fall as Treasury prices decline.

Precious metals dropped on Friday, 15 August 2014 at Comex on tame U.S. inflation data, but gold recouped earlier losses as haven demand emerged following news of clashes between Ukrainian and Russian forces. December gold traded lower but erased some losses after the spokesman for Ukraine's National Security and Defense Council said the country's forces destroyed a part of an armed convoy from Russia.

The precious metal dipped to a session low of $1293.00 per ounce in early morning action and reversed back above the $1300 per ounce level following the Ukraine headlines. It eventually settled 0.7% lower at $1306.60 per ounce, booking a loss of 0.3% for the week. September silver also spent today's session in the red, sliding as low as $19.51 per ounce. Unable to gain buying support, it settled 1.9% lower at $19.52 per ounce, bringing losses for the week to 2.1%.

Crude prices settled higher on Friday, 15 August 2014 at Nymex. But prices incurred losses on a weekly basis. September crude oil lifted from its session low of $95.66 per barrel in early morning floor trade and trended higher on the Ukraine news.

The energy component touched a session high of $95.70 per barrel moments before settling with a 1.9% gain at $97.31 per barrel. Friday's move higher helped cut losses for the week to 0.3%.

On Friday, more than 740 million shares changed hands at the NYSE.

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