U.S. stocks finished the regular trading session mixed with the NASDAQ underperforming its peers as technology stocks led to the downside. Global concerns in regard to trade, politics and monetary policies continued ahead of the beginning of a two-day G7 summit in Canada tomorrow. Treasury yields dipped and pressure on the U.S. dollar persisted following some comments that suggested the ECB could begin to discuss an exit to its stimulus program. Gold ticked to the upside and crude oil prices rallied.

The Dow Jones Industrial Average (DJIA) advanced 95 points (0.4%) to 25,241, the S&P 500 Index declined 2 points (0.1%) to 2,770, and the NASDAQ Composite dropped 54 points (0.7%) to 7,635. In heavy volume, 883 million shares were traded on the NYSE and 2.3 billion shares changed hands on the NASDAQ. WTI crude oil advanced $1.22 to $65.95 per barrel and wholesale gasoline added $0.04 to $2.11 per gallon. Elsewhere, the Bloomberg gold spot price moved $0.75 higher to $1,297.15 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—declined 0.2% to 93.42.

Consumer credit, released in the final hour of trading, showed consumer borrowing expanded by $9.3 billion during April, well-below the $14.0 billion forecast of economists polled by Bloomberg, while March’s figure was upwardly adjusted to an increase of $12.3 billion from the originally reported $11.6 billion. Non-revolving debt, which includes student loans and loans for vehicles and mobile homes, rose by $7.0 billion, while revolving debt, which includes credit cards, rose by $2.3 billion.

Weekly initial jobless claims declined 1,000 to 222,000, versus the Bloomberg estimate calling for 220,000, with the prior week’s figure revised higher by 2,000 to 223,000. The four-week moving average rose by 2,750 to 225,500, while continuing claims increased by 21,000 to 1,741,000, north of estimates of 1,735,000.

Treasuries finished higher, with the yield on the 2-year note dipping 3 basis points (bps) to 2.48%, the yield on the 10-year note decreasing 5 bps to 2.92%, and the 30-year bond rate dropping 6 bps to 3.07%.

Schwab Center for Financial Research – Market Analysis Group

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