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Jun 15, 2016

Wall Street at Close Report, by CNBC on June 15, 2016: Dow Posts First 5-Day Losing Streak Since Febuary After Fed, Yellen Remarks

Evelyn Cheng
U.S. stocks gave up gains to trade lower Wednesday as the close neared. Earlier, stocks attempted to snap a four-day losing streak, and held higher immediately following the conclusion of the Fed meeting.

The Federal Reserve kept rates unchanged at its June meeting. Six members projected only one hike this year, although the median expectation remained two hikes this year.
"It feels as though 2016 may be like 2015 where you have one and done," said Art Hogan, chief market strategist at Wunderlich Securities. "It feels like they walked back a little bit."
Stocks held much of their earlier gains, after edging towards session highs around the release of the statement. Materials traded 1 percent higher to lead S&P 500 advancers, while utilities remained the greatest laggard.

"We are more concerned about Brexit now than we were about the Fed," Hogan said.
Fed Chair Janet Yellen said in a press conference following the statement release that the Brexit vote was one of the factors in Wednesday's decision.
"She can't do anything about Brexit. One way or the other you're left with one of the major risk factors for the market that she has no say over," said Bill Stone, chief investment strategist at PNC Asset Management.
Treasury yields declined after the statement release, with the 2-year yield falling sharply to near 0.67 percent and the 10-year yield near 1.58 percent. Earlier in the day, the 2-year yield hit 0.746 percent, its highest since June 10.

The U.S. dollar index extended earlier declines to trade about 0.4 percent lower, with the euro near $1.127 and the yen near 105.9 yen versus the greenback. Sterling held near $1.417.

"You're basically back to status quo of being data dependent and being hyper-focused on every piece of data that comes in," said Aaron Clark, portfolio manager at GW&K Investment Management.

Gold spiked above $1,300 an ounce, its highest since early May.

The iShares MSCI Emerging Market ETF (EEM) held about 1.5 percent higher.

Analysts generally did not expect the Fed to raise rates but were watching for clues on the likelihood of a July hike.

The Dow transports and Russell 2000 outperformed the major indexes with gains of about half a percent in afternoon trade.

Consumer discretionary was among the top advancers in afternoon trade, with the S&P Retail ETF (XRT) up more than 1.5 percent. Financials held off highs following the statement release. Earlier, the sector rose 1 percent after lagging Tuesday.
"I think we're still in a market that still sees a lot of uncertainty. (It) would like to see some good news and push to new highs," said Bruce McCain, chief investment strategist at Key Private Bank.
As of afternoon trade Wednesday, the major U.S. stock indexes were down more than half a percent for the week so far.
Concerns about next Thursday's U.K. vote on whether to leave the European Union have weighed on global stocks in the last few days as recent polls generally indicated greater support for leaving.
U.S. crude oil futures settled down 48 cents, or 0.99 percent, at $48.01 a barrel. Earlier, oil came well off session lows to briefly attempt gains after EIA data showed U.S. crude oil stocks declined 933,000 barrels. Late Tuesday, the American Petroleum Institute said crude inventories rose by 1.2 million barrels versus expectations for 2.3 million barrel decline.
In U.S. economic news, industrial production declined 0.4 percent in May and April's figure was revised lower to show a 0.6 percent increase versus the previously reported 0.7 percent. May capacity utilization edged lower from the prior month to 74.9 percent.
The producer price index rose a slightly more-than-expected 0.4 percent in May, following a 0.2 percent rise the prior month, the Labor Department said. In the 12 months through May, PPI fell 0.1 percent after being unchanged in April.
The core PPI that excludes food, energy and trade services fell 0.1 percent last month after rising 0.3 percent in April, for a 0.8 percent rise in the 12 months through May.
The June Empire State Manufacturing Survey rose to 6.0 from a negative 9 print last month. Sub-index components on new orders and shipments also recovered positive territory, while inventories fell further into negative territory and the employment index was zero.
The German 10-year bund yield traded in negative territory, but off record lows touched Tuesday.
In Europe, the German DAX and STOXX Europe 600 were about 1 percent higher.


DJIA Dow Industrials 17643.25
-31.57 -0.18%
S&P 500 S&P 500 Index 2071.70
-3.62 -0.17%
-8.62 -0.18%
Asian stocks closed mostly higher, with the Nikkei 225 up almost 0.4 percent and the Shanghai composite rising more than 1.5 percent. Late Tuesday, MSCI delayed inclusion of the Chinese mainland-traded A shares in its benchmark emerging market index.
Overnight, China loan data showed Chinese banks extended a more-than-expected 985.5 billion yuan ($149.56 billion) in new yuan loans in May, Reuters reported. However, a broader measure of credit and liquidity, total social financing, fell to 659.9 billion yuan in May from 751 billion yuan in April.
In afternoon trade, the Dow Jones industrial average rose 57 points, or 0.32 percent, to 17,731, with Home Depot leading advancers and Intel the greatest decliner.
The S&P 500 gained 7 points, or 0.33 percent, to 2,082, with materials leading eight sectors higher and health care and utilities the only decliners.
The Nasdaq composite rose 17 points, or 0.36 percent, to 4,860.
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near lower near 19.4.
About three stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 534 million and a composite volume of 2.4 billion in afternoon trade.
Gold futures for August delivery settled up 20 cents at $1,288.30 an ounce.
On tap this week:

4 p.m. TIC data
8:30 a.m. Initial claims
8:30 a.m. CPI
8:30 a.m. Philadelphia Fed survey
8:30 a.m. Current account
10 a.m. NAHB survey
8:30 a.m. Housing starts
8:30 a.m. Building permits
*Planner subject to change.