Market Wrap: US Dollar Strength Weighs on Stocks

Strategic Insights -

The 23rd trading week of the year came to a close with investors fretting about the increasing strength of the US Dollar. The S&P 500, Dow Jones Industrial Average, and NASDAQ were all lower for the week. Crude oil futures traded lower, down to $99.35 per barrel, while gold futures fell to $1532.01 an ounce. Notable economic news included a little change in unemployment benefits, remaining weak for a second straight week, with 427,000 applications. In corporate news, Dollar Thrifty Automotive Group recommended shareholders not tender their shares in Hertz Global Holdings' tender offer, citing regulatory uncertainty.

Key Takeaways:

  • The US Dollar's strength weighed on stocks, pushing the S&P 500, Dow Jones Industrial Average, and NASDAQ lower for the week.
  • Crude oil futures traded lower, down to $99.35 per barrel, while gold futures fell to $1532.01 an ounce.
  • The number of people seeking unemployment benefits remained weak for a second straight week, with 427,000 applications.
  • Dollar Thrifty Automotive Group recommended shareholders not tender their shares in Hertz Global Holdings' tender offer, citing regulatory uncertainty.
  • General Electric and Capital One Financial reportedly submitted bids to acquire ING Group's U.S. Online Bank, which may raise up to $9 billion.
  • Auto aftermarket service and retail chain Pep Boys posted first-quarter earnings that fell short of analyst expectations.
  • Citigroup confirmed a computer breach that may have compromised customer data, affecting 1% of bank card customers.

Statistics:

  • 427,000: Seasonally adjusted number of people seeking unemployment benefits last week.
  • $99.35: Crude oil futures price in late Friday trading.
  • $1532.01: Gold futures price in afternoon trading.
  • $72: Hertz' offer price per share in its tender offer to acquire Dollar Thrifty.
  • $57.60: Cash portion of Hertz' offer price per share.
  • $81.6 billion: Deposits held by ING Group's U.S. Online Bank.
  • $40.5 billion: Mortgage loans held by ING Group's U.S. Online Bank.
  • $19.9 billion: Mortgage-backed securities held by ING Group's U.S. Online Bank.
  • $513.5 million: Sales generated by Pep Boys in the first quarter, up from $510 million last year.

Sources:

  • MarketNewsVideo.com (via COMTEX)
  • Bloomberg News
  • Financial Times
  • Comtex News Network, Inc. (SmarTrend Alert)
  • MarketDataNewsNetwork.com