Gilmer Free Press

U.S. Market Weekly Summary – Week Ending 06.22.2018

The Free Press WV

The Standard & Poor’s 500 index fell 0.9% this week as industrials and materials stocks led the market lower amid continued trade worries.

The market benchmark ended the week at 2,754.88, down from last week’s closing level of 2,779.42. The decline came as investors continued to fret over the potential impacts of a trade war amid a request earlier this week by US President Donald Trump for a new list of $200 billion in Chinese goods to be hit with tariffs.

The industrial sector posted the largest percentage drop of the week, down 3.4%, followed by a 2.1% decline in materials. A number of other sectors followed suit in the red, but four sectors bucked the downward trend: utilities and real estate, up 2.5% each, followed by a 1.5% gain in energy and a 0.1% edge up in consumer staples.

The industrial sector’s decliners included FedEx (FDX), whose shares tumbled 8.6% this week despite the package-shipping company’s report of higher-than-expected fiscal Q4 results as the midpoint of its guidance range for fiscal 2019 adjusted earnings per share was below the Street view at the time. The company sees fiscal 2019 adjusted EPS of $17.00 to $17.60, compared with a Street mean estimate ahead of the report for $17.47; analysts reduced their mean estimate to $17.39 after the guidance was released.

The drop in the materials sector came as the prices of industrials metals such as copper slid on the trade concerns. Shares of copper-and-gold mining company Freeport-McMoRan slipped 2.7% this week.

On the upside, the utilities sector’s gainers included Southern (SO), whose shares rose 3.1% as Citigroup upgraded its investment rating on the stock to neutral from sell.

The energy sector’s gains came as oil futures climbed, boosted by reports of the Organization of the Petroleum Exporting Countries agreeing to a smaller-than-anticipated increase in oil output. Among the gainers, Chevron (CVX) shares climbed 0.9% this week while Exxon Mobil (XOM) also added 0.9%.

--> Saturday, June 23, 2018
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