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S&P 500, Oil Get Scared on Friday the 13th


Today's financial recap and tomorrow's financial outlook.

Volatility was on the rise again Friday as the US dollar resumed its furious uptrend.

The dollar rose 1.4% against the euro and overcame an early decline against the yen to set fresh highs for the year.

The strong dollar has a negative impact on US corporate earnings and exports, and as such, traders are concerned that its rally has gone too far.

The S&P 500 fell 0.6% on the day.

The Russell 2000 outperformed with a smaller 0.4% loss. The small caps that comprise the Russell rely less on international sales, and thus don't feel as much pressure from the surging dollar.

The biotech sector was also a bright spot as traders were encouraged by news of a possible takeover of Biomarin (BMRN).

Biomarin rose 6.8%, while the SPDR S&P Biotech ETF (XBI) was up 0.8%.

The energy sector took some heat again as crude oil prices dropped to around $45 per barrel. Aside from the influence exerted by the strong US dollar, the International Energy Agency warned of a continuing supply glut, despite a higher forecast for global oil demand.

Economic data was on the weak side today.

The Producer Price Index fell 0.5% in February, the fourth straight month of decline, due to weakness in services prices. Economists surveyed by Bloomberg expected a 0.3% increase.

The preliminary March University of Michigan sentiment survey was 91.2, below the 95.5 consensus.

The Baker Hughes US Rig Count fell to is 1125 from 1192 last week as energy producers continued to pull rigs off-line.

Monday's Financial Outlook

We'll be busy with data on Monday as Empire Manufacturing, Industrial Production, Capacity Utilization, Manufacturing Production, and NAHB Housing Market Index numbers will be released.

Overseas, Australia's central bank will release its March meeting minutes, Japan will make its policy statement, and Germany will release its ZEW sentiment survey result.

There are no major earnings reports on tap.

Twitter: @T3Live
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