All the indexes were up, the Dow over 100 points, until about 2 pm, then came crashing down with everyone except the Dow closing only modestly up, basically at break-even, but the cyclical Dow still up 75, which is what happens when the market gets nervous about tech. Once again, strong economic data added to the skepticism that inflation is being tamed and that the Fed will keep rates steady for longer than the market wants.
The dollar coming in with its 8th straight week of gains has even suggested perhaps another hike. Both China and Japan are weakening and Japan may start clamping down on the yen. The good news is that Treasury yields have slipped though the 10-year is still up 9 points for the week. Everyone is warily anticipating next week’s inflation numbers. Volume remains decidedly below average at just 8.9 billion.
Dollar has 8th straight week of gains;
U.S. stocks edge up
Fri September 8, 2023 4:48 PM
DJ: 34,500.73 +57.54 NAS: 13,748.83 -123.64 S&P: 4,451.14 -14.34 9/7
DJ: 34,576.59 +75.86 NAS: 13,761.53 +12.69 S&P: 4,457.49
+6.35 9/8
NEW YORK, Sept 8
(Reuters) - The U.S. dollar index registered an eighth straight week of gains
on Friday while global stock indexes ended slightly higher on the day ahead of
key U.S. inflation data next week. The dollar index's weekly winning streak was its
longest since 2014, bolstered by recent data suggesting the U.S. economy is
still resilient. For the day, the index was nearly flat at 105.08. In contrast, China's onshore yuan ended its
domestic session at its weakest since 2007 amid concern about China's slowing economy. Strong U.S. economic data this week have left
some investors worried that even if the Federal Reserve leaves rates unchanged
this month, they could remain high for longer than anticipated. Investors are
waiting for the U.S. Consumer Price Index reading for August, due Wednesday,
especially with oil prices rising.
"The dollar
has been higher on the back of obviously stronger U.S. data ..., suggesting that the Fed
perhaps has another rate
hike before the end of the year," said Quincy Krosby, chief global
strategist at LPL Financial in Charlotte, North Carolina. Wall Street's three major stock indexes ended barely higher,
with shares of Apple (AAPL.O) up just 0.3%. Apple had fallen in
the last two sessions on news reports of China curbing iPhone use by state employees.
The Dow Jones Industrial
Average (.DJI) rose 75.86
points, or 0.22%, to 34,576.59, the S&P 500 (.SPX) gained 6.35 points, or 0.14%, at 4,457.49
and the Nasdaq Composite (.IXIC) added 12.69 points, or 0.09%, at
13,761.53. All
three major U.S. stock indexes were lower for the week. The pan-European STOXX 600 index (.STOXX) was up 0.2%, breaking a seven-day
string of losses, while MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 0.01%.
Dollar gains have also prompted a step up in rhetoric from Japanese policymakers growing uncomfortable with the yen's slide. Japan's top currency diplomat Masato Kanda said this week authorities will not rule out any option to clamp down on "speculative" moves, while chief cabinet secretary Hirokazu Matsuno said the government was watching with "urgency." The Japanese yen was last at about 147.82 per dollar and on the weaker side of the key 145-level that prompted Japan intervention last year.
Longer-dated U.S. Treasury yields slipped as investors digested recent comments from several Fed
officials, including some comments that underpinned the view the U.S. central
bank may be able to pause
in its rate hike cycle. The yield
on the benchmark U.S. 10-year Treasury note shed 1 basis point to 4.256%. The 10-year yield is
up about 9 basis points for the week.
In energy, oil prices rose to a nine-month high as U.S. diesel
futures rose and as investors worried about tight oil supplies. Brent futures rose 73 cents, or 0.8%, to
settle at $90.65 a barrel, while U.S. crude <CLc1< rose 64 cents, or
0.7%, to settle at $87.51. For the week, both benchmarks were up about 2%.
Per the CBOE, volume was 8.9 billion.
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