Highlights
Equities edged up Friday in slow trading to end a quiet week with the waiting game continuing for next week's Federal Reserve policy announcement and US inflation reports. The Dow industrials and the S&P 500 both rose 0.1 percent, and the Nasdaq firmed 0.2 percent. US Treasury yields and the dollar rose, and oil prices fell.
Megacap strength underpinned the major averages while the broader market was mostly lower. Rising market interest rates were in focus as investors await the Fed's policy news on Wednesday. Analysts widely expect no rate move from the Fed this time but many consider it a close call, especially after surprise rate increases this week from the Australian and Canadian monetary authorities. The market generally expects a Fed rate hike in July.
Trading will also key on next week's US consumer price and producer price reports, due on Tuesday and Wednesday. The Econoday consensus estimate looks for CPI up 0.2 percent and core CPI up 0.4 percent in May from April. PPI is seen up down 0.1 percent and up 0.2 percent for the core.
Among stock sectors Friday, consumer discretionary, communications services, and technology fared best, reflecting relative megacap strength. Autos had a great day, paced by Tesla, on news General Motors would adopt Tesla's battery charging standard. Lagging were industrials, energy, materials, and utilities.
Megacap strength underpinned the major averages while the broader market was mostly lower. Rising market interest rates were in focus as investors await the Fed's policy news on Wednesday. Analysts widely expect no rate move from the Fed this time but many consider it a close call, especially after surprise rate increases this week from the Australian and Canadian monetary authorities. The market generally expects a Fed rate hike in July.
Trading will also key on next week's US consumer price and producer price reports, due on Tuesday and Wednesday. The Econoday consensus estimate looks for CPI up 0.2 percent and core CPI up 0.4 percent in May from April. PPI is seen up down 0.1 percent and up 0.2 percent for the core.
Among stock sectors Friday, consumer discretionary, communications services, and technology fared best, reflecting relative megacap strength. Autos had a great day, paced by Tesla, on news General Motors would adopt Tesla's battery charging standard. Lagging were industrials, energy, materials, and utilities.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
