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Financial Markets Snapshot: Today’s 35 Major Stories from the World of Finance

Published on May 5, 2017 at 12:10 pm by Insider Monkey Staff in Commodities, Futures/Forex, Gold, Market Movers, News, Tech

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1. U.S. Stock Market:

“U.S. stocks struggled to hold on to slight gains Friday, flipping in and out of negative territory, as investors weighed stronger-than-expected April employment report against uncertainty of the outcome of the French presidential election on Sunday. The S&P 500 index SPX, +0.17% was up 2 points, or 0.1%, to 2,392, with nine of the 11 main sectors trading in positive territory. Financials and health-care stocks edged lower, energy shares rallied following a rebound in oil prices. The Dow Jones Industrial Average DJIA, +0.10% declined 10 points, or less than 0.1%, to 20,941, with more than 30 points of that drag coming from shares of International Business Machines Corp. IBM, -2.61% which plunged 3% following news that Warren Buffett’s Berkshire Hathaway sold about one-third of its stake. Meanwhile, the Nasdaq Composite Index COMP, +0.17% rose 5 points, or 0.1%, to 6,080.”

(Market Watch)

“U.S. stocks were little changed on Friday as a rebound in energy companies due to higher oil prices was offset by healthcare stocks and a sharp drop in IBM. The technology giant’s shares fell 2.3 percent to a six-month low of $155.46 after Warren Buffett said he sold nearly a third of his stake in the company. The stock was the biggest drag on the blue-chip Dow index as well as the benchmark S&P 500 index. At 12:37 p.m. ET, the Dow Jones Industrial Average was down 29.03 points, or 0.14 percent, at 20,922.44, the S&P 500 was up 0.86 points, or 0.04 percent, at 2,390.38 and the Nasdaq Composite was up 0.35 points, or 0.01 percent, at 6,075.69.”

(Reuters)

“The Dow Jones industrial average struggled to keep pace with the S&P 500 and Nasdaq composite as a fall in IBM’s stock put a lid on the index. IBM shares fell more than 2 percent on Friday and contributed the most losses on the Dow after Berkshire Hathaway Chairman and CEO Warren Buffett sold a third of his IBM stake, or 81 million shares. The S&P and Nasdaq rose slightly after the U.S. economy added more jobs than expected last month.”

(CNBC)

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2. U.S. Bond Market:

“The Treasury yield curve steepened Thursday before the much-awaited nonfarm payrolls report as investors look for a pick-up in economic data and less labor slack, both a gauge of whether inflation continues to have momentum. The yield for the 10-year note TMUBMUSD10Y, +0.00% rose 0.8 basis point to 2.363%. Bond prices move inversely to yields. The yield for the 2-year noteTMUBMUSD02Y, +0.63% edged off 0.4 basis point, and the 30-year bond, or the long bond, TMUBMUSD30Y, -0.28% gained 0.4 basis point to 3.003%.”

(Market Watch)

“The U.S. Treasuries traded flat ahead of the Federal Reserve Chair Janet Yellen’s speech, scheduled to be held later in the day, besides the host of FOMC members’ speech lined up for today. Also, the country’s April labour market data is curiously awaited by market participants. The yield on the benchmark 10-year Treasury hovered around 2.35 percent, the super-long 30-year bond yields traded flat at 2.99 percent while the yield on short-term 2-year note also remained steady at 1.31 percent.”

(EconoTimes)

“The U.S. bond market’s gauges on inflation expectations held their earlier gains on Friday as U.S. payrolls report for April showed steady wage growth and the jobless rate hitting a near 10-year low. The 10-year inflation breakeven rate, or the yield difference between 10-year Treasury Inflation Protected Securities and regular 10-year Treasury notes, was last at 1.86 percent, up a 0.05 basis point from Thursday, Tradeweb and Reuters data showed.”

(Reuters)

3. FX Markets:

“The greenback briefly spiked on Friday after the U.S. economy created 211,00 jobs in April. However, it soon pared those gains as disappointing data from March were revised even lower. The greenback USDJPY, +0.06% shot to 112.73 yen immediately after the data were released, but it soon returned to 112.47, where it had traded late Thursday in New York. The euro EURUSD, -0.0728%skidded to $1.0949 after the data, though it soon pared most of that drop, with one euro buying $1.0978 in recent trade, compared with $1.0984 late Thursday in New York. The pound GBPUSD, +0.1393% remained higher after the data, buying $1.2952, compared with $1.2923 late Thursday.”

(Market Watch)

“The Dollar traded with a lot of volatility in the minutes which followed the release, initially gaining against the Euro, with EUR/USD falling to 1.0952 from 1.0962 as the market noted the headline figure but then rising to 1.0991 as it digested the less positive details. Against sterling, it was a similar story, with the GBP/USD exchange rate falling to 1.2929 in the minute after the release but then rising to 1.2959 over the next quarter of an hour.”

(PoundSterling Live)

“On the currency front, the U.S. dollar is trading at 112.45 yen compared to the 112.46 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0987 compared to yesterday’s $1.0985.”

(RTT News)

4. Commodities:

“Oil prices plunged below $44 a barrel overnight in a matter of minutes, putting the market on edge as futures tested yet another key technical level. Traders blamed forced margin calls and computer trading for the so-called flash crash, but were not quite sure what caused the drop. At about 11:17 pm ET, U.S. West Texas Intermediate crude was trading at $45.36. By 11:31 pm ET, it had plunged 3 percent to a low of $43.76, the lowest price since Nov. 15. Futures then rebounded slightly back above $44 and stayed there for awhile until rallying back above $45 by 4 am ET.”

(CNBC)

“Gold futures on Friday pared gains but remained in positive territory after April’s strong jobs report was seen keeping the Federal Reserve on a path of higher interest rates, with another hike increasingly likely as soon as next month. June gold GCM7, -0.02% gained $1.60, or 0.1%, at $1,230.20 an ounce, after finishing the previous session at its lowest level in seven weeks. Gold had touched $1,236 earlier Friday. The metal’s sister commodity, silver for July deliverySIN7, -0.02% gained 3 cents, 0.2%, to $16.335 an ounce, bouncing off its lowest settlement of 2017 on Thursday.”

(Market Watch)

“Oil prices fell to fresh five-month lows on Friday on concerns about a persistent glut despite assurances from Saudi Arabia that Russia was ready to join OPEC in extending supply cuts. US West Texas Intermediate (WTI) crude oil futures fell more than 3 per cent in early trading to below $44 per barrel, the lowest since Nov 14. It fell 4 per cent on Thursday. Benchmark Brent also fell 3 per cent to below $47 per barrel, its lowest since Nov 30, which was the date the Organization of the Petroleum Exporting Countries (OPEC) triggered a rally when it said it would cut production in the first half of 2017. “

(The Economic Times)

“Gold prices are bouncing around unchanged levels, seeing little reaction after the U.S. economy created more jobs than expected. Gold prices were modestly positive on the day ahead of the report but have lost ground in initial reaction. June Comex gold last traded at $1.228.60 an ounce, flat on the day.”

(Kitco News)

5. Market Movers:

Immunomedics, Inc. (NASDAQ:IMMU) is having an overwhelmingly strong day in the market, and for good reason. The company made a key business update that led to excitement among investors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:59), IMMU is trading at $6.79 per share after a gain of $1.38 per share or 25.51% thus far today.

(CNA Finance)