US Stock Market Overview – Stocks Slip Led Down by Semi-Conductor Shares, Utilities Buck the Trend

Energy shares weighed on the broader market
David Becker
S&P 500 Stuck at 2,900, Still No Clear Direction

US stocks were lower on Friday, with the Nasdaq the worst performer. Semi conductor shares were trading under pressure as concerns over the China trade deal weighed on this space. Most sectors were lower, led by Energy shares which declined despite rising oil prices. Utiliities bucked the trend. Retail sales came in weaker than expected but revisions to April added to Q2 GDP. US business inventories rose and the Fed is expected to remove the wording patience from its statement. Facebook announced that the company was planning on boosting advertising as a way of rebuilding trust.

Retail Sales Revisions Were Stronger than Expected

The Commerce Department reported that retail sales for April were revised up to show retail sales gaining 0.3%, instead of dropping 0.2% as previously reported. US retail sales rose 0.5% in May, according to the Commerce Department, as households bought more cars. Expectations were for retail sales to rise by 0.6%.

Excluding automobiles, gasoline, building materials and food services, retail sales advanced 0.5% last month after an upwardly revised 0.4% rise in April. Core retail sales correspond most closely with the consumer spending component of gross domestic product. The solid gains in core retail sales in April and May suggested consumer spending was gaining speed in the Q2 after braking sharply in the Q1.

US Business Inventories Rose

US business inventories increased by 0.5% after being unchanged in March, according to the US commerce department. Retail inventories increased by 0.5% as estimated in an advance report published last month. Motor vehicle inventories surged 0.8% in April instead of advancing 0.6% as previously reported. Retail inventories excluding autos, which go into the calculation of GDP, gained 0.4% as reported in May.

The Fed Could Remove the Term Patience

Ahead of the Federal Reverse meeting a number of market watches are expecting the Fed to remove the term patience from its view. This would allow the Fed to tilt its message toward lower rates, with officials lowering their interest rate forecasts which are known as the Fed’s dot plots.  They are also expected to reduce their outlook for economic growth and acknowledge weaker inflation.

Facebook Said it would Buoy Spending

Facebook reported on Friday that it ramping up its global advertising spending as it aims to rebuild trust from its customers. The push, which could more than double the company’s advertising spending, will involve working with a revamped roster of creative agencies on campaigns for brands including WhatsApp and Instagram. The company recently redesigned its mobile app and website to shift from an open public forum to a more private network with encrypted communication in closed groups to boost public trust.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US