U.S. stocks fell on Friday to cap their third consecutive weekly decline, after a strong August jobs report failed to allay fears that the Federal Reserve would continue to aggressively raise interest rates to fight the coronavirus crisis. ‘inflation.
After rallying in the morning, the Dow Jones Industrial Average erased a 370-point gain and ended the session down 1.1%. The S&P 500 fell around the same level The Nasdaq Composite fell 1.3%
All major averages were lower at the end of the week. The Dow Jones fell 3% and the S&P lost 3.3%, while the Nasdaq fell 4.2%.
Next week’s highlights include a speech by Jerome Powell, ECB and RBA meetings, an OPEC+ meeting, ISM services and a number of sell-side conferences.
Flow data indicated the largest outflow from US stocks in ten weeks. The average U.S. mutual fund or exchange-traded fund is down 17.3% year-to-date, through August, according to Lipper data. This includes an average decline of 3.5% in August.
On the macro front, credit agency Moody’s downgraded its 12-month price outlook for major mining commodities, blaming the global economic slowdown and slowing demand, particularly from China and the United States. Europe where a recession is in sight. Moody’s named key commodities such as gold, silver, steel, aluminum and copper in a major research note on Friday.
Stocks initially rallied on August’s Nonfarm Payrolls report which saw employment growth slightly ahead of consensus. Messaging.
However, the market then went on the defensive following news of an extended shutdown of the Nord Stream pipeline. Russian energy giant Gazprom extended the shutdown of gas flows to Germany on Friday evening, without giving a deadline for a reopening. The timing of this decision will raise questions about whether Putin was reacting to the impending imposition of a cap on Russian oil.
In terms of S&P500 sectors, energy was the strongest despite an 8% weekly drop in the price of brent last week. It seems that the market is attracted by the record profits announced recently by the sector. Within sectors, the weakest themes included social media, hydrogen, EV charger, online education and cannabis stocks.
On a more positive note, solar power is growing so rapidly that global installations this year are on track to be about 3 times larger than capacity regulators expected to be added in 2040 when she projected. in 2017. The recently passed Inflation Reduction Act (IRA) is expected to be a game-changer for the solar industry, with nearly $369 billion to support energy development. Analysts modernized the sector after the passage of the legislation. Shares of First Solar, for example, jumped 28.6% in August.
An Australian dollar weakened slightly against the US dollar on Friday, buying 67.86 US cents (Fri: 67.91 US cents), 59.19 pence sterling, 95.07 yen and 68.34 euro cents.
Iron ore futures are pointing to a 1.4% gain.
Gold rebounded on Friday as the dollar retreated after U.S. jobs data mostly came in line with expectations. Gold gained $13.30 or 0.8% to US$1,723 an ounce.
Silver was up $0.22 or 1.2% at US$17.88 an ounce.
Copper added $0.70 or 0.2% to US$341.35 per pound.
Oil added $0.26 or 0.3% to US$86.87 a barrel.
SPI futures point to a 0.2% decline.
Numbers around the world
Across the Atlantic, European stock markets closed higher. Paris added 2.2%, Frankfurt jumped 3.3% and London’s FTSE closed up 1.9%.
Asian markets closed on a mixed note. Tokyo’s Nikkei closed flat, Hong Kong’s Hang Seng fell 0.7 and China’s Shanghai Composite closed 0.1% higher.
On Friday, the Australian stock market fell 0.3% to 6829.
There are 22 companies ready to trade without the right to a dividend.
Adairs (ASX:ADH) pays 10 cents fully franked
Aust Finance Group (ASX:AFG) pays 9.6 cents fully franked
Altium (ASX: ALU) pays 26 cents fully franked
Bendigo and Adelaide (ASX:BEN) pay 26.5 cents fully franked
Corporate Travel Management (ASX: CTD) pays 5 cents free of postage
Ellerston Asian Investments (ASX:EAI) pays 3 cents fully franked
Excelsior Capital (ASX:ECL) pays 3 cents fully franked
Fortescue Metals Group (ASX:FMG) pays 121 cents fully franked
Gold Road Resources (ASX:GOR) pays 1 cent fully franked
Iluka Resources (ASX:ILU) pays 25 cents fully franked
Kina Securities (ASX:KSL) pays 3.485 cents unstamped
Mader Group (ASX:MAD) pays 2 cents fully franked
McPherson’s (ASX:MCP) pays 2 cents fully franked
Morphic Ethical Equities Fund (ASX:MEC) pays 1.5 cents fully franked
NIB Holdings (ASX:NHF) pays 11 cents fully franked
Orora (ASX:ORA) pays 8.5 cents unstamped
QANTM Intellectual Property (ASX:QIP) pays 3.5 cents fully franked
Qualitas Real Estate Income Fund (ASX:QRI) pays 0.8701 cents postage free
Ramsay Health Care (ASX:RHC) pays 48.5 cents fully franked
Summerset Group Holdings (ASX:SNZ) pays 8.1768 cents unstamped
Shaver Shop Group (ASX:SSG) pays 5.5 cents fully franked
Yancoal Aust (ASX:YAL) pays 52.71 cents unstamped
There is a company ready to pay eligible shareholders today.
Ryder Capital (ASX:RYD)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.