Dow Jones Misses Last-Ditch Effort At New Record Close

It was a photo finish on Friday for the Dow Jones Industrial Average (DIA). As the final trades of the day were coming across the tape, all eyes were on the Dow as it was less than one basis point away from its fourth consecutive record-high close. By the time the last trade of the session was counted, the Dow was short by 8 percent of a single point to finish at 14,865.06, compared with Thursday’s close at 14,865.14. The S&P 500 (SPY) declined 0.28 percent to close at 1,588.85.

The Nasdaq 100 (QQQ) dipped by only 9 basis points (0.09 percent) to end the week at 2,856. The Russell 2000 (IWM) made a more significant, 0.47 percent decline to 942.

In other major markets, oil (USO) continued its descent, sinking 2.78 percent to close at $32.53.

On London’s ICE Futures Europe Exchange, June futures for Brent crude oil declined by $1.45 (1.39 percent) to $102.93/bbl. (BNO).

June gold futures declined by $76.80 (4.91 percent) to $1,488.10 per ounce (GLD).

Transports continued to decelerate on Friday, with the Dow Jones Transportation Index (IYT) declining 0.22 percent.

The major European stock indices were unable to push their winning streak beyond four consecutive days. The Euro STOXX 50 Index finished Friday’s trading session with a 1.53 percent drop to 2,633 – crossing back below its 50-day moving average of 2,653. Japan’s Nikkei 225 Stock Average declined 0.47 percent on Friday because the yen took a pause before reaching an exchange rate of exactly one American penny.

In China, the Shanghai Composite Index declined 0.58 percent to 2,206 (FXI).and Hong Kong’s Hang Seng Index finished the session with a 0.06 percent dip to 22,089 (EWH). China’s investors are nervously awaiting Monday’s release of GDP data from the National Bureau of Statistics.

Technical indicators reveal that the S&P 500 made a slight retreat from its trajectory toward the “overbought” threshold, as its Relative Strength Index pulled back to 64.59. Its MACD has now crossed above the signal line, which could suggest a possible advance.

For the day, most sectors finished in counterintuitive territory. In other words, the consumer sector did well, despite a downbeat preliminary Thompson Reuters / University of Michigan Consumer Sentiment Index for April and a disappointing report on retail sales. Although the Producer Price Index was lower than expected, the industrial, technology and materials sectors were in the red.

Consumer Discretionary (XLY): +0.54%

Technology: (XLK): -0.46%

Industrials (XLI): -0.57%

Materials: (XLB): -1.48%

Energy (XLE): -1.50%

Financials: (XLF): -0.48%

Utilities (XLU): +0.42%

Health Care: (XLV): +0.10%

Consumer Staples (XLP): +0.35%

Bottom line: The Dow Jones Industrial Average barely missed its fourth consecutive day of record high closes on a day when the commodities sector did horribly and downbeat reports were issued on consumer sentiment as well as retail sales.

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