Stocks End Week Lower on Rate Hike Chatter, Sparse Macro News
U.S. markets closed in the red Thursday after Bullard told reporters in New York that the central bank should deliver its first federal funds rate hike at the end of the first quarter of 2015. Bullard has been among those pressing Fed Chair Janet Yellen and the central bank to move up the timeline for raising rates.
On Friday, the Dow Jones Industrial Average closed flat at 16,851.84, though 0.56% lower for the week. The S&P 500 inched 0.19% higher to 1,960.96, down just 0.1% since Monday. The Nasdaq climbed 0.43% to 4,397.93.
"You have very little market-moving news but on top of that, you've got the beginning of a holiday season and the Russell reconstitution . . . that's probably causing some intra-company volatility," Drew Wilson, investment analyst at Fenimore Asset Management, told TheStreet. "It's a lot of miscellaneous stuff but nothing extreme or important to really move the markets."
European markets were relatively buoyant this morning, despite falls in Asia overnight. Economic indicators showed the U.K.'s strong recovery continued -- although analysts were slightly disappointed that the Office for National Statistics did not revise its annual growth prediction of 1.7% upwards, as forecast. Asia stocks took a hit on signs of slowing industrial profit growth out of China.
It was a sparse day for domestic economic news, save for the results of the Reuters/University of Michigan consumer sentiment index for June which edged higher to 82.5 from 81.9 in May. Polled economists on average expected a reading of 82.
Economic reports in store for next week include The ISM manufacturing composite index on Tuesday, factory orders on Wednesday and the June government jobs report, moved forward to Thursday due to the July 4 holiday weekend. Next Wednesday, Yellen is expected to speak on monetary policy to the IMF central banking conference in Washington.
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