Stocks Rise Modestly in Final Day of a Bumpy Trading Week
September 20 2019 - 12:02PM
Dow Jones News
By Avantika Chilkoti
U.S. stocks climbed Friday at the end of a week that featured an
interest-rate cut from the Federal Reserve and dramatic swings in
crude prices after an attack on production facilities in Saudi
Arabia.
The Dow Jones Industrial Average gained 0.2%. The S&P 500
added 0.1%, and the Nasdaq Composite slipped 0.1%.
Much of investors' focus this week has been whether the Fed --
internally divided and under pressure from President Donald Trump
-- will continue to ease monetary policy and push stocks higher.
The Dow and S&P 500 are less than 1% below their closing record
highs reached in July.
In addition to cutting interest rates Wednesday, the Federal
Reserve said it would consider at its next meeting whether it
should allow its balance sheet to resume growth. The move wouldn't
mark the start of a new bond-buying program as a stimulus measure,
but a return to the normal precrisis practice of letting the Fed's
balance sheet grow in line with the broader economy.
The Fed this week also stepped in to relieve funding pressure in
money markets, after rates on short-term repurchase agreements
briefly jumped to nearly 10%. The central bank pledged to give the
financial system another $75 billion boost Friday.
The yield on U.S. 10-year Treasurys on Friday edged down to
1.772%, from 1.777% on Thursday. Bond yields and prices move in
opposite directions.
Netflix was one of the worst-performing stocks in the S&P
500, down 5.7%. The streaming company has been under pressure in
recent months amid a decline in its U.S. subscribers.
Overseas, the benchmark Stoxx Europe 600 gained 0.3%. In Asia,
the Shanghai Composite and Japan's Nikkei both rose 0.2%.
Rolls-Royce shares were among the biggest fallers in Europe,
down 2.5% after the British engineering group warned that issues
with its Trent 1000 engines would continue longer than
expected.
U.S. crude oil futures rose 1% to $58.75 a barrel after days of
major price swings. Following an attack on key production
facilities, Saudi Arabia was reaching out to foreign producers to
send crude to its domestic refineries, as part of the country's
efforts to keep exports flowing.
"The price of oil might be capped due to the fundamental
slowdown in growth we see around the world, whether that be Europe
or the world's second-largest economy, China," said Marshall
Stocker, director of country research at Eaton Vance.
Elsewhere in commodities, gold prices rose 0.3%.
Alexander Osipovich contributed to this article.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
September 20, 2019 11:47 ET (15:47 GMT)
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