Stocks Barely Budge As House Passes Budget

The curse of Friday the 13th prevented stocks from enjoying a relief rally as the House of Representatives passed the 2014 budget bill.  

The absence of any “relief rally” after Congress passed the first bipartisan budget in four years must have been due to the fact that it was Friday the 13th. Stocks were little changed after the characters on Capitol Hill managed to avoid another government shutdown.
 
The Dow Jones Industrial Average (DIA) picked up 15 points to finish Friday’s trading session at 15,755 for a 0.10 percent advance. The S&P 500 (SPY) dipped 0.01 percent to close at 1,775.
 
The Nasdaq 100 (QQQ) declined 0.11 percent to finish at 3,456. The Russell 2000 (IWM) advanced 0.34 percent to end the day at 1,107.
 
In other major markets, oil (USO) sank 0.94 percent to close at $34.64.
                                                                                                                                                           
On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined 9 cents (0.08 percent) to $108.29/bbl. (BNO).
 
February gold futures advanced $13.10 (1.07 percent) to $1,238.00 per ounce (GLD).
 
Transports were finally zipping across dry pavement on Friday, as the Dow Jones Transportation Average (IYT) advanced 0.38 percent. Shares for struggling trucking company, YRC Worldwide (YRCW) skyrocketed 24.90 percent to $12.49, after the company worked out a deal with the Teamsters Union which would allow the business some flexibility in resolving its outstanding debts. YRCW shares had been trading at prices above $30 during July.
In Japan, the exchange rate for the yen continued to be the dominant factor in stock market activity. Japanese stocks advanced, as the yen weakened to 103.90 per dollar during the last 90 minutes of Friday’s trading session in Tokyo. A weaker yen causes Japanese exports to be more competitively priced in foreign markets (FXY). The Nikkei 225 Stock Average advanced 0.40 percent to 15,403 (EWJ).
 
Stocks retreated on China’s mainland, as investors remained anxious about the government’s impending announcement of its economic targets for 2014. Earlier this week, the nation’s Economic Information Daily newspaper reported that China’s 2014 growth target would be lowered to 7 percent from the 2013 target of 7.5 percent. At Friday’s conclusion of the Central Economic Work Conference, which began on Tuesday, no announcement was made concerning any new 2014 GDP target. After the meeting, the press was informed that the 2014 economic targets would be released by the nation’s parliament in March. The Shanghai Composite Index declined 0.31 percent to 2,196 (FXI). Hong Kong’s Hang Seng Index advanced 0.12 percent to end the day at 23,245 (EWH).
 
In Europe, stocks declined moderately on Friday. In the absence of any new economic data, investors focused on the news that General Motors dumped its 7 percent share of Peugeot Citroen at a discounted price, causing Peugeot’s share price to drop 12 percent. The Euro STOXX 50 Index finished Friday’s session with a 0.21 percent retreat to 2,921 – falling further below its 50-day moving average of 3,020. Its Relative Strength Index is 32.71 (FEZ).
 
Technical indicators revealed that the S&P 500 remained above its 50-day moving average of 1,761 after dipping 0.01 percent to finish Friday’s session at 1,775. Its Relative Strength Index ticked downward from 45.93 to 45.85. The MACD is on a downward trajectory, which would suggest that the S&P could continue to decline during the immediate future.

On Friday, five sectors advanced, and four sectors declined. The energy sector took the hardest hit, falling 0.33 percent.
 
Consumer Discretionary (XLY):  +0.25%
 
Technology:  (XLK):  -0.32%
 
Industrials (XLI):  +0.30%
 
Materials: (XLB):  +0.48%
 
Energy (XLE):  -0.33%
 
Financials: (XLF):  +0.09%
 
Utilities (XLU):  -0.16%
 
Health Care: (XLV):  +0.07%
 
Consumer Staples (XLP):  -0.17%
 
Bottom line:  Friday the 13th prevented the stock market from getting a relief rally going after Congress approved a 2014 budget bill.

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