US: Stocks finish downcast week mostly lower

THE S&P 500 fell into correction territory on Friday (Oct 27), concluding a downcast week as markets weighed instability in the Middle East and uncertainty over monetary policy.

“We are seeing the sellers are relentless and clearly in control,” said Adam Sarhan of 50 Park Investments, adding that “the market is repricing for a potential increased military involvement in the Middle East”.

The broad-based S&P 500 finished at 4,117.37, down 0.5 per cent for the day and off more than 10 per cent from Jul 31 – technically a correction.

The Dow Jones Industrial Average fell 1.1 per cent to 32,417.59, while the tech-rich Nasdaq Composite Index gained 0.4 per cent to 12,643.01.

All three indices retreated during the week.

A closely-watched indicator of US inflation stayed steady in September. The personal consumption expenditures price index rose 3.4 per cent from a year earlier – the same rate as in the preceding two months.

The report comes ahead of next week’s Federal Reserve meeting. While consumer inflation has cooled, the latest figures remain well above officials’ 2 per cent target and could prompt further action.

Companies with big moves after earnings reports included Amazon, up 6.8 per cent; Intel, up 9.3 per cent; Chevron, down 6.7 per cent; and Ford, down 12.3 per cent.

JPMorgan Chase dropped 3.6 per cent after the bank disclosed that chief executive Jamie Dimon would sell one million shares, his first stock sale since becoming CEO in 2005.

SEE ALSO

US: S&P 500, Nasdaq rise at open on Amazon, Intel boost; inflation data lifts sentiment

Other large banks also fell, with Citigroup, Bank of America and Wells Fargo all losing more than 2 per cent. AFP