Stocks Retreat At Close Of Abbreviated Session

Stocks gave up most of their gains during the last half-hour of the abbreviated Black Friday trading session.  

Black Friday’s abbreviated trading session brought thin trading volume and new record intraday highs for the Dow, the S&P 500 and the Russell 2000. Interestingly, Friday’s low for the Nasdaq 100 marked the highest level this index had hit since October of 2000. Stocks fell during the last 30 minutes of the session, as the Dow took a 59-point nosedive. The other major indices made similar declines during the last half-hour.
 
The Dow Jones Industrial Average (DIA) lost 10 points to finish Friday’s abbreviated trading session at 16,074 for a 0.07 percent decline, despite hitting a new record intraday high of 16,174.51. The S&P 500 (SPY) dipped 0.08 percent to close at 1,805, despite hitting a new record intraday high of 1,813.55.
 
The Nasdaq 100 (QQQ) climbed 0.50 percent to finish at 3,487. The Russell 2000 (IWM) advanced 0.14 percent to a record-high close at 1,142.89 after hitting a new record intraday high of 1,147.00.
 
In other major markets, oil (USO) surged 0.81 percent to close at $33.70.
 
On London’s ICE Futures Europe Exchange, January futures for Brent crude oil  declined 75 cents (0.68 percent) to $110.11/bbl. (BNO).
 
February gold futures  advanced $13.50 (1.09 percent) to $1,251.40 per ounce (GLD).
 
Transports got stuck in the Black Friday traffic, with the Dow Jones Transportation Average (IYT) declining 0.26 percent to $129.60, despite reaching an all-time, intraday high of $130.40.
 
Stocks declined in Japan after the Ministry of Economy, Trade and Industry reported that the nation’s industrial production rose by only 0.5 percent in October on a month-to-month basis, missing economists’ expectations for a 2.0 percent increase. Although the yen weakened slightly to 102.33 per dollar just before the closing bell in Tokyo, the move was not significant enough to offset the disappointment from the industrial production report (FXY). The Nikkei 225 Stock Average declined 0.41 percent to 15,661 (EWJ).
 
In China, stocks advanced only modestly on the mainland, while in Hong Kong, enthusiasm about the new financial reforms sent the Hang Seng Index to its highest level since April of 2011. Insurance company stocks led the advance. The Shanghai Composite Index rose 0.05 percent to 2,220 (FXI). Hong Kong’s Hang Seng Index climbed 0.39 percent to end the day at 23,881 (EWH).
 
Stocks declined modestly in Europe, despite a report from Eurostat, indicating that Eurozone consumer price inflation rose to an annual rate of 0.9 percent in November from October’s 0.7 percent. Economists had been expecting an increase to 0.8 percent. The report signaled a reduced risk of deflation. The good news was outweighed by Eurostat’s report that unemployment in the Eurozone dipped to only 12.1 percent in October from September’s 12.2 percent. The unemployment rate for the greater, 28-nation European Union remained unchanged at 10.9 percent. The Euro STOXX 50 Index finished Friday’s session with a 0.19 percent decline to 3,086 – remaining above its 50-day moving average of 3,005. Its Relative Strength Index is 62.60 (FEZ).
 
Technical indicators revealed that the S&P 500 remained above its 50-day moving average of 1,742 despite dipping 0.08 percent to finish Friday’s session at 1,805. Its Relative Strength Index declined from 66.78 to 65.86. The MACD is on a level trajectory, invisibly below the signal line, which would suggest that the S&P will remain near 1,805 in the immediate future.

On Friday, only two sectors finished in positive territory and six sectors finished in the red.
 
Consumer Discretionary (XLY):  +0.09%
 
Technology:  (XLK):  +0.41%
 
Industrials (XLI):  -0.28%
 
Materials: (XLB):  -0.09%
 
Energy (XLE):  -0.21%
 
Financials: (XLF):  -0.37%
 
Utilities (XLU):  -0.05%
 
Health Care: (XLV):  -0.05%
 
Consumer Staples (XLP):  -0.16%
 
Bottom line:  After hitting new highs, the major stock indices sank during the last half-hour of Friday’s abbreviated trading session, suggesting that a good number of investors were afraid to maintain their positions over the weekend.  

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