Market 360: The Best and Worst of the Week for US Equities, Commodities, Currencies, and More
Crude Oil for September delivery fell for four of five days this week, after crude reached a three month low, reaching an intraday low of $114.9/barrel on Friday. U.S. crude inventories expansion of 1.7M barrels showed demand continues to erode. Combined with a stronger dollar, oil dropped 7.91% for the week, and is off -21.8% from its all time high of $147.27/barrel hit on 7/11.
Frozen Pork Bellies for February 09 delivery rose to a six-month high, as futures traded at an intraday high of 93.275 cents/lb on 8/8, levels not seen since late February. On Tuesday, the Chicago Mercantile Exchange announced a drop on the 3 cents/lb daily limit causing larger delivery supplies, and a 42.4% increase in pork bellies for the week.
**The nation’s largest hog and pork producer Smithfield Foods (SFD) also finished up 19.4% for the week.
Grains faced a heavy-sell off with Soybean Meal for December delivery being the worst performer for the week, down 14.4%. Corn for December delivery slumped 11.41% ,as it settled at $5.183/bushel on Friday, the lowest close since March 20th.
**Grains futures fell due to an expected rise in crop production and supply estimates. The crop report will be revealed on 8/12 by the U.S. Department of Agriculture, as excellent crop weather lingers in the U.S. Midwest.
Currencies: The US dollar rallied against the euro, as investors worried about the health of European economies. A 4.2% drop in crude oil prices on Friday, to ~$115 per barrel, helped to further lift the greenback.
The dollar index hit an intraday high of 75.90 on Friday, its highest level since February 21, 2008. The dollar index was last at 75.69, up 1.53%. The dollar index has broken out of its 200-day moving average, which could be bearish for commodities. In contrast, it could raise investors' interest in US assets.
The euro hit an intraday low of $1.5008 per euro, dropping to its lowest level since February 27, 2008. On Thursday, the European Central Bank announced that it would hold interest rates steady at 4.25%, as the ECB struggles to balance high inflation and sluggish growth. The euro fell as much as 2.07% from its intraday high during Friday's trading session, marking its biggest intraday-move since May 7, 2004. The euro was last at $1.5035, from $1.5321 late Thursday.
The pound sterling dropped to its lowest level since November 24, 2006, and was poised for its biggest weekly-percentage-decline since July 2005. The pound sterling hit an intraday low of $1.9213 per pound on growing concerns over England's economic outlook. Friday afternoon, the pound was at $1.9209, from $1.9435 late Thursday.
The greenback crossed the 110-Japanese yen mark on Friday, rising to it highest level since January 2, 2008. The dollar traded at 110.25 yen on Friday, from 109.43 yen late Thursday, while the dollar raised to 1.0813 Swiss francs per dollar, from 1.0623 francs late Thursday.
As the Olympic games kick off, the Chinese yuan has appreciated 6.10% year-to-date, with one dollar purchasing 6.8588 yuan. For a briefing on China's economy and more, click here.
- The Dow ended up 408.00 or 3.60% for the week
- Friday, the Dow closed at 11,734.32, up 302.89 or 2.65%
- The Dow is Negative YTD down -11.54%
- The Dow is off by -2,430.21 or -17.16% from the market peak on October 9th of 14,164.53
- The NASDAQ ended up 103.14 or 4.46% for the week
- Friday, the NASDAQ Composite closed at 2,414.10, up 58.37 or 2.48%
- The NASDAQ is Negative YTD down -8.98%
- The NASDAQ is off by -445.02 or -15.56% from the market peak on October 31 of 2,859.12
- S&P 500
- The S&P 500 ended up 36.01 or 2.86% for the week
- Friday the S&P 500 closed at 1,296.32, up 30.25 or 2.39%
- The S&P is Negative YTD down -11.72%
- The S&P is off by -268.83 or -17.18% from the market peak on October 9th of 1,565.15
S&P Sector Performance for the week ending Friday, August 8, 2008:
S&P 500 Consumer Discretionary Sector (.GSPD) Up 17.25 or 7.72%
S&P 500 Information Technology Sector (.GSPT) Up 20.87 or 5.97%
S&P 500 Health Care Sector (.GSPHC) Up 18.90 or 5.13%
S&P 500 Industrials Sector (.GSPI) Up 13.37 or 4.37%
S&P 500 Consumer Staples Sector (.GSPS) Up 11.87 or 4.20%
S&P 500 Telecomm Services Sector (.GSPTS) Up 2.96 or 2.35%
S&P 500 Utilities Sector (.GSPU) Up 1.98 or 1.06%
S&P 500 Financials Sector (.GSPF) Up 2.90 or 1.00%
S&P 500 Materials Sector (.GSPM) Down -4.88 or -2.01%
S&P 500 Energy Sector (.GSPE) Down -22.30 or -3.99%
S&P Top 10 Performers for the week ending Friday, August 8, 2008:
Fidelity National Information Srvcs Inc (FIS) Up 4.08 or 21.33%
Polo Ralph Lauren Corp (RL) Up 12.22 or 20.71%
Coach Inc (COH) Up 5.04 or 20.28%
Advanced Micro Devices Inc (AMD) Up 0.85 or 19.86%
CB Richard Ellis Group Inc (CBG) Up 2.55 or 18.96%
CIGNA Corp (CI) Up 6.57 or 18.45%
JC Penney Company Inc (JCP) Up 5.55 or 18.38%
Tesoro Corp (TSO) Up 2.59 or 16.89%
SanDisk Corp (SNDK) Up 2.31 or 16.09%
Eastman Kodak Co (EK) Up 2.32 or 15.93%
S&P 10 Worst Performers for the week ending Friday, August 8, 2008:
Freddie Mac (FRE) Down -2.08 or -26.07%
Fannie Mae (FNM) Down -2.77 or -23.43%
Massey Energy Co (MEE) Down -16.34 or -21.68%
AK Steel Holding Corp (AKS) Down -9.14 or -15.22%
Range Resources Corp (RRC) Down -7.21 or -14.71%
Ciena Corp (CIEN) Down -2.88 or -14.48%
Washington Mutual Inc (WM) Down -0.74 or -13.91%
Whole Foods Market Inc (WFMI) Down -2.77 or -12.93%
Chesapeake Energy Corp (CHK) Down -5.93 or -12.05%
National Oilwell Varco Inc (NOV) Down -8.95 or -11.26%
Dow Top Performers for the week ending Friday, August 8, 2008:
Microsoft Corp (MSFT) Up 2.69 or 10.57%
Home Depot Inc (HD) Up 2.47 or 10.33%
McDonald's Corporation (MCD) Up 5.90 or 9.87%
The Boeing Co (BA) Up 5.85 or 9.43%
Intel Corp (INTC) Up 1.88 or 8.41%
Merck & Co Inc (MRK) Up 2.69 or 8.09%
Procter & Gamble Co (PG) Up 4.68 or 7.21%
Pfizer Inc (PFE) Up 1.24 or 6.67%
The Walt Disney Co (DIS) Up 1.95 or 6.48%
United Technologies Corp (UTX) Up 3.30 or 5.19%
Dow Worst Performers for the week ending Friday, August 8, 2008:
American International Group Inc (AIG) Down -1.92 or -7.17%
Bank Of America Corp (BAC) Down -1.08 or -3.24%
General Motors Corp (GM) Down -0.20 or -1.96%
Exxon Mobil Corp (XOM) Down -1.00 or -1.25%
ALCOA Inc (AA) Down -0.38 or -1.18%
Chevron Corp (CVX) Up 0.09 or 0.11%
Wal-Mart Stores Inc (WMT) Up 0.11 or 0.19%
JPMorgan Chase and Co (JPM) Up 0.31 or 0.76%
American Express Co (AXP) Up 0.62 or 1.67%
International Business Machines Corp (IBM) Up 2.17 or 1.71%
Key Earnings next week:
Monday: Calpine Corp (CPN), Sysco (SYY), Fluor (FLR)
Tuesday: UBS AG (UBS), VeraSun Energy (VSE), Applied Materials (AMAT)
Wednesday: Deere (DE), Macy’s (M)
Thursday: Wal-Mart (WMT), JC Penney (JCP), Agilent (A), Nordstrom (JWN)
Friday: Abercrombie & Fitch (ANF)
Economic Data next week:
Tuesday: Trade Balance, Treasury Budget
Wednesday: Export & Import Prices, Retail Sales, Business Inventories
Thursday: Consumer Price Index, Jobless Claims (weekly)
Friday: Industrial Production, Capacity Utilization