Consumer staples and technology shares sell off the most
U.S. stock-market indices closed lower on Thursday, 20 September 2017 retreating slightly from all-time highs, with consumer staples and technology shares selling off the most. Modest losses came a day after the Federal Reserve left interest rates unchanged and outlined its plan to start reducing its massive balance sheet in October.
The Dow Jones Industrial Average declined 53.36 points, or 0.2%, to 22,359.23, snapping a nine-day winning streak. Among the worst performers on the Dow, Procter & Gamble fell nearly 2%, while Apple shares slid 1.7%. The S&P 500 shed 7.64 points, or 0.3%, to 2,500.60. The Nasdaq Composite index slipped 33.35 points, or 0.5%, to 6,422.69.
Nine of the eleven sectors settled Thursday's session in negative territory, but losses were modest for the most part. The top-weighted technology space held a loss of 1.0% shortly after the opening bell, but strengthened a bit as the day wore on; Apple was among the weakest components within the sector extending its week-to-date loss to 4.1%.
Also, the Philadelphia Fed Survey for September rose to 23.8 from an unrevised 18.9 in August while market had expected a reading of 17.1. The key takeaway from the report is that most firms expect increased production for the rest of the year. Separately, the FHFA Housing Price Index for July rose 0.2%. The prior month's reading was left unrevised at +0.1%.
The ICE Dollar Index on Wednesday scored its biggest one-day percentage gain since January. The index pulled back, however, on Thursday.
Thursday's economic data, included the weekly Initial Claims Report, the September Philadelphia Fed Index, and the July FHFA Housing Price Index. The latest weekly initial jobless claims count totaled 259,000 while the consensus expected a reading of 310,000. The tally was below the revised prior week count of 282,000 (from 284,000). As for continuing claims, they rose to 1.980 million from the revised count of 1.936 million (from 1.944 million).
Also, the Philadelphia Fed Survey for September rose to 23.8 from an unrevised 18.9 in August while market had expected a reading of 17.1. The key takeaway from the report is that most firms expect increased production for the rest of the year. Separately, the FHFA Housing Price Index for July rose 0.2%. The prior month's reading was left unrevised at +0.1%.
Bullion prices ended substantially lower at Comex on Thursday, 22 September 2017. Gold prices dropped on Thursday, settling below $1,300 for the first time in September after the U.S. Federal Reserve hinted that interest rates will go up in December.
Gold for December delivery slid $21.60, or 1.6%, to settle at $1,294.80. The percentage decline was also the biggest for a single session since early July. December silver also retreated by 31.6 cents, or 1.8%, to $17.018 an ounce.
U.S. oil prices settled modestly lower on Thursday, 21 September 2017 after ending at a nearly five-month high a day earlier, as traders looked to the production-cut agreement led by OPEC to further tighten global crude supplies. The market also weighed data from a U.S. government report released Wednesday, which showed a larger-than-expected weekly rise in domestic crude supplies and a sizable climb in production. The data, however, also revealed that petroleum-product inventories dropped more than expected and refinery activity has improved as the Gulf of Mexico region recovers from Hurricane Harvey.
U.S. benchmark, November West Texas Intermediate crude lost 14 cents, or 0.3%, to settle at $50.55 a barrel on the New York Mercantile Exchange after tapping a high of $50.81. A day earlier, the October contract, which expired at Wednesday's settlement, finished at a four-month high for a front-month contract.
In the bond market, U.S. Treasuries moved higher at the start of Thursday's session, but gave back most of their gains by the close. The yield on the benchmark 10-yr Treasury note finished unchanged at 2.28%, while the 2-yr yield slipped one basis point to 2.28%.
Investors will not receive any economic data on Friday.
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