Highlights
A hotter than expected producer price report pushed bond yields higher and hurt equities Friday as it undercut hopes for an early end to the Federal Reserve's rate hike campaign.
Equities ended mixed but mostly weaker with growth stocks lagging. The Dow industrial average rose 0.3 percent, the S&P 500 eased 0.1 percent, and the Nasdaq lost 0.7 percent. US Treasury yields and oil prices rose while the dollar slipped.
Equities finished a down week with a prod lower from news that PPI rose 0.3 percent month-on-month in July and by 0.8 percent from a year ago, just above expectations for +0.2 percent and +0.7 percent. Markets this week have weakened under pressure from the view that gains so far this year have been overdone and overestimate the likelihood of rate cuts ahead. Risk assets also reacted poorly Friday to news of weak loan growth in China and more financial trouble at Country Garden, China's largest remaining property developer.
Among sectors, big technology was mostly lower, along with consumer discretionary, communications services, and financials. Energy was the day's big winner as oil prices rose again on the day and the week. Pharma had another good day in a strong week.
Equities ended mixed but mostly weaker with growth stocks lagging. The Dow industrial average rose 0.3 percent, the S&P 500 eased 0.1 percent, and the Nasdaq lost 0.7 percent. US Treasury yields and oil prices rose while the dollar slipped.
Equities finished a down week with a prod lower from news that PPI rose 0.3 percent month-on-month in July and by 0.8 percent from a year ago, just above expectations for +0.2 percent and +0.7 percent. Markets this week have weakened under pressure from the view that gains so far this year have been overdone and overestimate the likelihood of rate cuts ahead. Risk assets also reacted poorly Friday to news of weak loan growth in China and more financial trouble at Country Garden, China's largest remaining property developer.
Among sectors, big technology was mostly lower, along with consumer discretionary, communications services, and financials. Energy was the day's big winner as oil prices rose again on the day and the week. Pharma had another good day in a strong week.
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.
