U.S. equities finished lower in a volatile session, as investors weighed the continued uncertainty surrounding U.S.-China trade tensions, as well as some earnings results and upbeat economic data. The Leading Index improved and consumer sentiment jumped to a 15-year high, while Deere & Company missed earnings forecasts and lowered its full-year outlook, and NVIDIA and Applied Materials posted positive results. Treasury yields were mixed after overcoming early declines and crude oil prices were lower, while the U.S. dollar saw a modest gain and gold fell.
The Dow Jones Industrial Average (DJIA) decreased 99 points (0.4%) to 25,764, the S&P 500 Index was down 17 points (0.6%) to 2,860, and the Nasdaq Composite dropped 82 points (1.0%) to 7,816. In moderate volume, 867 million shares were traded on the NYSE and 2.1 billion shares changed hands on the Nasdaq. WTI crude oil inched $0.11 lower to $62.76 per barrel and wholesale gasoline was down $0.01 at $2.05 per gallon. Elsewhere, the Bloomberg gold spot price decreased $8.58 to $1,278.14 per ounce, and the Dollar Index— a comparison of the U.S. dollar to six major world currencies—was up 0.1% at 97.99. Markets were lower for the week, as the DJIA fell 0.7%, the S&P 500 Index lost 0.8%, and the Nasdaq Composite declined 1.3%.
The Conference Board’s Index of Leading Economic Indicators (LEI) for April rose 0.2% month-over-month (m/m), matching the Bloomberg projection and compared to March’s downwardly-revised 0.3% gain. None of the ten components of the index declined, with jobless claims, stock prices, credit and consumer expectations the major positive contributors.
The May preliminary University of Michigan Consumer Sentiment Index rose to 102.4 from April’s read of 97.2, where it was expected to remain. This was the highest level since 2004 as the consumer expectations portion of the survey jumped, while the current economic conditions component ticked higher. The 1-year inflation forecast rose to 2.8% from 2.5%, and the 5-10 year inflation forecast increased to 2.6% from the previous 2.3% rate.
Treasuries finished mixed after giving up an early advance, as the yield on the 2-year note was up 1 basis point (bp) at 2.20%, while the yield on the 10-year note ticked 1 bp lower to 2.39%, and the 30-year bond rate dipped 2 bps to 2.82%. Volatility has ramped up amid escalated trade tensions and this week’s mixed global economic data.
©2019 Charles Schwab & Co., Inc., Member SIPC. All rights reserved.
Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.