Stocks hold weekly gains as solid earnings overshadow geopolitical fears
by onlysureshot.com |
U.S. stocks fell Friday as geopolitical fears following President Donald Trump's move to cancel a key summit with North Korea weighed on solid corporate earnings.
The Dow Jones industrial average dropped 58.7 points to finish at 24,753.09, led lower by losses in Chevron and Exxon Mobil. The S&P 500 declined 0.24 percent to finish at 2,721.33, amid continued losses in energy and financial stocks.
Both sectors had been under pressure this week as a decline in oil prices weighed on industry leaders like Exxon Mobil and Chevron, which closed down 3.5 percent Friday. Lower interest rates, meanwhile, dragged on bank stocks.
U.S. West Texas Intermediate crude futures fell $2.83, or 4 percent, to settle at $67.88 on Friday after several headlines suggested OPEC and non-OPEC members could increase supply. Russian Energy Minister Alexander Novak met with his Saudi counterpart, Khalid Al-Falih, in St. Petersburg to discuss current output caps.
The move Friday represented WTI crude's worst day since July 2017; oilis off more than 7 percent from recent highs above $72.
The rate on the benchmark 10-year Treasury note has fallen roughly 15 basis points since Monday; it was last seen at 2.93 percent. The Federal Reserve's May meeting minutes released this week showed the central bank may be willing to let inflation run a little hotter than its two percent goal. A pivot to safer asset classes in the wake of geopolitical concerns has also helped send rates lower.