Wall Street Finds Green to Close Out Losing Week
Wall Street advanced on Friday, rebounding from red futures to close out another losing November week. It has been all about the fiscal cliff, and Friday’s session was no exception. Progress in budget talks as the fiscal cliff looms boosted market optimism. It was the first gain in four sessions for the major averages. The Dow Jones industrial average closed up 45.93 points, or 0.4 percent, to 12,588.31. The Standard & Poor’s 500 index rose 6.55 points, or 0.5 percent, to 1,359.88, while the Nasdaq composite index gained 16.19 points, or 0.6 percent, to 2,853.13. For the week, the blue chips lost another 1.8%, the S&P declined 1.5%, while the tech heavy Nasdaq tumbled 1.8%. Looking ahead to the holiday shortened week ahead, not only will we continue to focus on the state of budget talks, but also take a look at the holiday shopping season as well with Black Friday.
Crude oil for December delivery added $1.22, or 1.4%, to settle at $86.67 a barrel on the New York Mercantile Exchange. The December contract expired at the close. Gold posted a modest gain on the session despite a losing week. The precious metal added 90 cents, or less than 0.1%, to settle at $1,714.70 an ounce, losing 0.9% on the week.
Industrial production declined 0.4 percent in October after having increased 0.2 percent in September, well below the low end of expectations. Hurricane Sandy slowed things down in the northeast, accounting for a reduction in the rate of change in total output by nearly 1 percentage point. The consensus was for a 0.2% advance. Capacity utilization for total industry decreased 0.4 percentage point to 77.8 percent in October, compared to expectations of a slight increase.