Market Wrap For Friday, August 29: Gas Prices Lower Into Holiday Weekend Despite Crude Rally
Labor day weekend is rolling in with the lowest gas prices in almost five years.
The drop in fuel prices is driven by a multi-week sell off in crude oil. At last check, oil futures were last trading at 95.87, up on a 1.4 percent rally. Despite Friday’s boost, the commodity is still trading at a discount to the summer’s $107 highs.
The Dow Jones Industrial Average gained 18.8 points, or 0.1 percent, to close at 17,098.
The S&P 500 rose 6.6 points, or 0.3 percent, to finish at 2,003.
The Nasdaq added 22.6 points, or 0.5 percent, to 4,580.
Apple’s (NASDAQ: AAPL) iPhone 6, which is expected to be released on September 9, is rumored to have a mobile payment system. Analysts are calling the system a game changer and are speculating this payment system will put pressure on existing payment systems, such as Paypal.
Shares of Veeva Systems (NYSE: VEEV) got a boost, shooting up 20.1 percent to $29.97 after the company reported better than expected second-quarter results and issued a strong third-quarter outlook.
Shares of Kandi Technologies Group (NASDAQ: KNDI) were down 6.6 percent to $17.86 after the company announced that it has entered into an agreement for registered direct placement of $71 million of common stock and warrants.
Big Lots (NYSE: BIG) shares tumbled 1.8 percent to $46.35 on Q2 results. Big Lots reported better-than-expected fiscal second-quarter earnings and raised its FY14 earnings forecast. The company also announced a new $125 million share-repurchase program.
Oil futures had one of the strongest weeks of the year, led by Friday’s rally. The commodity has picked up more than $3 on the week, or 3.2 percent. At last check, oil futures were trading at $95.88.
Gold futures were mostly flat for the day, last trading down 0.2 percent at $1,288. Friday’s trading follows the week’s trend of low volatility. The contracts gained about $1 over the past six sessions.
The U.S. dollar jumped in value Friday, finishing a strong week. At last check, the PowerShares ETF (NYSE: UUP) that tracks the performance of the greenback versus a basket of foreign currencies, was up 0.23 percent to $22.02.
The closely watched EUR/USD pair dropped 0.33 percent to $1.3139. This is the lowest the pair has traded in 2014. The currency temporarily traded lower in September 2013.
China’s Shanghai exchange shot 0.97 percent higher while Hong Kong’s Hang Seng was flat. Japan’s Nikkei sold off 0.23 percent.
Europe was mostly down on the day. The Euro Stoxx 50 index, which tracks 50 eurozone blue chips, gained 0.26 percent. England’s FTSE rose 0.2 percent, and France’s CAC rose 0.34 percent.
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