U.S. equities recorded their fifth-straight week of gains
U.S. stock market ended the week in rally mode on Friday, 21 November 2014. U.S. equities recorded their fifth-straight week of gains after being sparked by a surprise dose of liquidity measures launched by China's central bank and dovish comments from European Central Bank President Mario Draghi on Friday. After timidly moving higher over the course of the past few trading sessions, more detailed talk of stimulus by economic world leaders at some of the biggest, and most sluggish, economies helped push stocks higher. Shares pulled back off their highs later in the trading day, as some of the initial unabashed elation wore off.
The Dow Jones Industrial Average jumped 91.06 points, or 0.5%, to 17,810.06, and booked a 1% gain over the week. The Nasdaq Composite rose 11 points, or 0.2%, to 4,712.97 and added 0.5% over the past five sessions. The S&P 500 closed 10.75 points, or 0.5% higher at 2,063.50.
Broad-based gains were led by materials sector stocks. Also of note, the energy sector rallied with help from crude oil.
The Dollar Index finished near its best level of the day while equities endured a bit of a hangover following the early morning extravaganza. Despite the pullback, all ten sectors ended in the green with telecom services bringing up the rear.
On Friday, the People's Bank of China announced its first rate cut in two years, lowering its deposit rate 25 basis points to 2.75% and trimming its one-year lending rate 40 basis points to 5.60%. The news boosted U.S. futures and European equities, while comments made by European Central Bank President Mario Draghi also contributed to increased risk tolerance. Mr. Draghi served up another reminder that low eurozone inflation has become increasingly challenging and the central bank is ready to act fast if current trends continue. The euro responded by returning near its early November low, while the resulting greenback strength sent the Dollar Index to a fresh four-year high.
Manufacturers of heavy machinery rallied with Caterpillar umping 4.3%. The Dow component gave a boost to the industrial sector which ended among the leaders.
Similarly, technology could only hold a slim portion of its opening advance with Apple, Intel and Microsoft pressuring the top-weighted sector from its early high.
Bullion prices climbed on Friday, 21 November 2014 at Comex reacting to dovish comments from European Central Bank President Mario Draghi and a surprise rate cut from China's central bank.
Gold for December delivery settled at $1,197.70 an ounce, gaining $12.10 or 0.6% for the day. The contract traded above the $1,200 level that some traders watch closely, but wasn't able to settle above that mark. December gold advanced 1% for the week. December silver jumped 26 cents, or 1.6%, to settle at $16.40 an ounce, advancing 0.2% for the week.
Crude-oil futures got a big bump on Friday, 21 November 2014 at Nymex after the People's Bank of China announced a surprising swath of interest-rate cuts intended on boosting its economy.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January rose 66 cents, or 0.9%, to settle at $76.51 a barrel. On the week, crude gained 0.9%, snapping a seven-week losing streak.
Today's participation was ahead of recent averages with roughly a billion shares changing hands at the NYSE floor.
Monday's session will be free of notable economic data.
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