Dow closes at a record for a third session in a row
US stocks ended in a mixed mode on Thursday, 14 September 2017. Investors reined in the stock market on Thursday following three straight days of gains, which culminated in new record highs for all three major U.S. indices in the prior session. The Dow closed at a record for a third session in a row on Thursday even as the broader market sagged on the back of weak retail shares.
The Dow Jones Industrial Average gained 45.30 points, or 0.2%, to finish at 22,203.48. The Nasdaq Composite Index slipped 31.10 points, or 0.5%, to end at 6,429.08. The S&P 500 index shed 2.75 points, or 0.1%, to end at 2,495.62.
In Europe, the Bank of England left its key policy rate at 0.25% and its asset purchase program at 435 billion, as expected, but noted that it could potentially raise rates more aggressively than the market expects if the economy keeps evolving as expected. The British pound spiked 1.4% against the U.S. dollar hitting a 52-week high, following the BoE's comments. The dollar index slipped 0.4% on Thursday.
Thursday's economic data included the Consumer Price Index for August and the Weekly Initial Claims Report. Total CPI increased 0.4% (consensus 0.3%) in August while core CPI, which excludes food and energy, rose 0.2% (consensus 0.2%). On a year-over-year basis, total CPI and core CPI are up 1.9% and 1.7%, respectively.
The key takeaway from the report is that the year-over-year bump in headline inflation toward the Fed's 2.0% target will prompt the market to consider more carefully the prospect of another rate hike before the end of the year.
The latest weekly initial jobless claims count totaled 284,000 while the consensus expected a reading of 310,000. Today's tally was below the unrevised prior week count of 298,000. As for continuing claims, they declined to 1.944 million from the revised count of 1.951 million (from 1.940 million).
The equity market's continued run to new heights, with the bull market in its ninth year, has raised concerns about lofty stock valuations.
Earlier Thursday, North Korea made more threats in response to the latest United Nation sanctions.
Apple shares closed 0.9% lower after revealing details on its new iPhone lineup and other tech gadgets.
Crude oil prices ended higher on Thursday, 14 September 2017 for a fourth consecutive session, with the U.S. benchmark settling at a more-than-six-week high on expectations for stronger demand and efforts by major producers to maintain a cap on crude output.
October West Texas Intermediate oil on the New York Mercantile Exchange rose 59 cents, or 1.2%, to settle at $49.89 a barrel after hitting a session high of $50.50. November Brent crude rose 31 cents, or 0.6%, to $55.47 a barrel holding ground at their best levels in about five months.
Bullion metals ended in a mixed mode on Thursday, 14 September 2017. While gold climbed up, silver dropped.
December gold gained $1.50 to settle at $1329.30/oz, while Sept silver dropped $0.08 to $17.78/oz
In Europe, the Bank of England left its key policy rate at 0.25% and its asset purchase program at 435 billion, as expected, but noted that it could potentially raise rates more aggressively than the market expects if the economy keeps evolving as expected. The British pound spiked 1.4% against the U.S. dollar hitting a 52-week high, following the BoE's comments. The dollar index slipped 0.4% on Thursday.
On Friday, investors will receive a slew of economic reports, including August Retail Sales (consensus 0.1%) at 8:30 ET, the September Empire State Manufacturing Index (consensus 20) also at 8:30 ET, Industrial Production (consensus 0.2%) and Capacity Utilization (consensus 76.8%) at 9:15 ET, the preliminary reading of the University of Michigan Consumer Sentiment Index for September (consensus 95.5) at 10:00 ET, and July Business Inventories (consensus 0.2%) also at 10:00 ET.
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