The major averages fell from their record highs in Friday’s abbreviated trading session. The Dow lost 112 points, to cap weekly gains at 0.6%. The S&P 500 declined 0.4%, but ended the week up 1.0%. The Nasdaq Composite fell 0.5% but still rallied 1.7% this week. For the month, the S&P 500 rose 3.4%, its best monthly performance since June. The Dow advanced 3.7%, while the Nasdaq Composite climbed 4.5%.
Investor sentiment was dampened after China’s foreign ministry warned of unspecified retaliation against President Trump’s decision to sign a Human Rights Protest Bill supporting the protestors in Hong Kong. There were no economic releases scheduled today. Next week’s data docket will be highlighted by separate updates on manufacturing and service sector activity as well November’s payroll figure. Treasuries were mixed along the curve, with the yield on the benchmark 10-year note adding one basis point to 1.78% and the two-year note down one basis point to 1.61%.
All 11 S&P 500 sectors ended in negative territory. The Energy group led laggards as WTI crude slumped 4.4% to $55.52/barrel, with oil prices snapping a three week winning streak. Shares of retailers were in focus during today’s session as market participants closely monitored updates on holiday shopping sales figures. Estimates from Adobe suggested this year’s Black Friday sales totals, which included both in-store and online shopping, were expected to increase by 20.5% year-over-year to $7.5 billion.
In commodities, COMEX gold rose 0.7% to $1,463.50/ounce. Despite the gains, the precious metal declined nearly 3.4% in November, its largest monthly drop in three years.