S&P 500 Futures Decline, Turning Lower for Week
New York (May 13) US stocks declined Friday, dragged lower by shares of financials and commodity companies, as investors weighed the aftermath of President Trump’s firing of former FBI Director James Comey earlier this week.
The S&P 500 Index declined 0.2% to finish at 2,390.90. The benchmark gauge lost 0.4% during the week.
Nine of 11 sectors tracked by the large-cap S&P 500 finished in the red. Shares of financials companies closed down 0.5%, with consumer finance leading the drop.
Commodity-sensitive shares tied to energy and industrials also finished firmly lower as oil prices pulled back from session highs.
In a report on Friday, energy services provider Baker Hughes said active U.S. oil rigs rose for a seventeenth consecutive week. The latest data showed an increase of nine active rigs for the week ended May 12, bringing the total to 712. That’s the highest number since April 2015.
The only sectors to report gains on Friday were utilities and information technology, which rose 0.5% and 0.1%, respectively.
A measure of implied volatility known as the CBOE VIX declined Friday after three consecutive gains. The fear barometer held lower for the week as stocks hover near record highs.
The dominant story this week has been the unexpected firing of James Comey, a move that could result in Trump losing political support from fellow Republicans and his voter base. The president escalated his war with the FBI on Thursday by referring to the former FBI chief as a “showboat” and grandstander.”
“James Comey better hope that there are no ‘tapes’ of our conversation before he starts leaking to the press!” Trump tweeted Friday in a message that has been shared more than 18,000 times.
The Trump administration succeeded last week in passing healthcare reform through Congress, but faces an uphill battle getting the approval of the Senate. Analysts say the administration will likely have to amend the reform to make it palatable to lawmakers.
Source: EconomicCalendar
