logo
Plus   Neg
Share
Email

Stocks Turn Higher Amid Focus On G7 Summit - U.S. Commentary

wallstreet4-103112_08jun18.jpg

After an early move to the downside, stocks moved modestly higher over the course of the trading session on Friday. With the turnaround on the day, the Dow and the S&P 500 reached their best closing levels in about three months.

The major averages finished the day just off their highs of the session. The Dow climbed 75.12 points or 0.3 percent to 25,316.53, the Nasdaq inched up 10.44 points or 0.1 percent to 7,645.51 and the S&P 500 rose 8.66 points or 0.3 percent to 2,779.03.

For the week, the major averages moved sharply higher. The Dow soared by 2.8 percent, the S&P 500 surged up by 1.6 percent and the Nasdaq jumped by 1.2 percent.

The rebound by stocks as the day progressed came as traders kept a close eye on any developments out of the G7 summit in Canada.

The summit is expected to focus on trade relations amid the ongoing dispute over President Donald Trump imposing tariffs on steel and aluminum imports from Canada, Mexico, and the European Union.

Trump continued his tough talk on trade as he prepared to head to the meeting, arguing that the U.S. is being treated very unfairly on trade.

In posts on Twitter ahead of the summit, Trump lashed out at Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron.

"Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers," Trump tweeted.

He added, "The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow."

Trump described Trudeau as "indignant" for bringing up the relationship between the U.S. and Canada without mentioning Canadian tariffs on U.S. dairy products.

"Looking forward to straightening out unfair Trade Deals with the G-7 countries. If it doesn't happen, we come out even better!" Trump tweeted.

In remarks to reporters before the leaving for the summit, Trump suggested Russia should be included in the meeting of major industrialized countries.

Housing stocks moved significantly higher over the course of the session, driving the Philadelphia Housing Sector Index up by 1.8 percent. The index climbed to its best intraday level in well over a month.

Transportation, biotechnology, and computer hardware stocks also saw some strength on the day, while oil service and semiconductor stocks moved to the downside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved to the downside during trading on Friday. Japan's Nikkei 225 Index dropped by 0.6 percent, while Hong Kong's Hang Seng Index plunged by 1.8 percent.

European stocks also moved mostly lower on the day. While the French CAC 40 Index closed just above the unchanged line, the U.K.'s FTSE 100 Index and the German DAX Index fell by 0.3 percent and 0.4 percent, respectively.

In the bond market, treasuries showed a lack of direction before ending the session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by less than a basis point to 2.937 percent.

Looking Ahead

Next week's trading could be impacted by reaction to several significant events, including the G7 summit, Trump's meeting with North Korean leader Kim Jong Un and monetary policy announcements by the Federal Reserve and the European Central Bank.

Reports on consumer and producer price inflation, retail sales, and industrial production are also likely to attract some attention.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Follow RTT