U.S. equities finished mixed, as investors appeared cautious ahead of the highly-anticipated meeting between President Donald Trump and Chinese President Xi at this week’s G-20 summit. Global growth concerns were also in focus in the midst of the recent dovishness from global central banks, some disappointing regional manufacturing data and a deterioration in German business confidence. Equity headlines surrounded some M&A news. Treasury yields were lower and the U.S. dollar added to a recent drop, while crude oil prices were slightly higher amid the increased geopolitical tensions and gold added to a rally.
The Dow Jones Industrial Average (DJIA) rose 9 points to 26,728, while the S&P 500 Index ticked 5 points (0.2%) lower to 2,945, and the Nasdaq Composite fell 26 points (0.3%) to 8,006. In moderate volume, 799 million shares were traded on the NYSE and 2.0 billion shares changed hands on the Nasdaq. WTI crude oil advanced $0.47 to $57.90 per barrel and wholesale gasoline was unchanged at $1.82 per gallon. Elsewhere, the Bloomberg gold spot price traded $19.44 higher to $1,419.77 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—lost 0.2% to 96.02.
The June Dallas Fed Manufacturing Index unexpectedly fell further into a level depicting contraction (a reading below zero), dropping to -12.1 from -5.3 in May, and versus the Bloomberg expectation of a rise to -2.0. This was the lowest level in three years as the company outlook and orders growth rate components of the survey contracted solidly.
Treasuries rose, as the yields on the 2-year and the 10-year notes, along with the 30-year bond dropped 4 basis points (bps) to 1.74%, 2.02% and 2.55%, respectively
©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.