Weekend markets: Wall Street fades to second weekly drop

Stocks on Wall Street finished largely in the red, with the blue chip Dow Jones Industrial Average losing 34.01 points, or 0.4%, to end at 8438.39, a 1.2% drop for the week and despite data showing improved consumer sentiment and higher personal incomes.

The S&P 500 index lost 1.3 points, or 0.1%, to 918, a drop of 0.3% for the week and the second straight week of declines, the first since March.

The index has slipped 2.9% in the past two weeks. Energy producers, makers of industrial equipment and real-estate companies have fallen the most in the S&P 500 since June 12, with each group losing more than 7.7%, as oil prices decreased and US new home sales unexpectedly fell in May.

By contrast, technology stocks were a relative bright spot. The Nasdaq Composite Index rose 8.68 points, or 0.5%, to 1838.22, a weekly gain of 0.6%..

Stocks face a busy schedule of economic reports in the coming week as the key June jobs numbers, along with manufacturing and housing data, is packed into four days ahead of a market closure on Friday for the July 4 Independence Day holiday.

Boeing tumbled 14% after delaying its target for the first flight of the 787 Dreamliner. Nike lost 10% after saying orders declined 12% because of the global economic slump. ConocoPhillips and Apache sank more than 3.1% on oil’s slump below $US70 a barrel.

Canada's benchmark index eked out daily and weekly gains as strength in financial stocks offset a pullback in some big mining and energy companies and a downbeat forecast from fertiliser-maker Potash.

The S&P/TSX Composite closed up 34 points, or 0.3%, to 10,389.8 points. Financial stocks led gainers, while energy and materials shares declined. For the week, the benchmark rose 1%, putting it on track for a 19% quarterly gain.

European stocks fell, the Dow Jones Stoxx 600 Index posting its first back-to-back weekly declines since the start of the rebound in March. The Stoxx 600 fell 1.8% to 204.47 on the week.

National benchmarks slid in 13 of the 18 western European markets.

The UK’s FTSE 100 dropped 0.3% on Friday to 4241.01, a 2.4% drop for the week and its first back-to back weekly declines since March 6.

German stocks retreated, sending the benchmark DAX Index to its third consecutive weekly drop. It slipped 0.5% to 4776.47, bringing the weekly loss to 1.3%.

France’s CAC 40 Index lost 0.7%, to 3163.10, falling for a third day in four for a weekly decline of 2.8%.

Commodities: Oil down, gold up

Crude prices settled below $US70 a barrel, under pressure from weak stocks and concerns about sluggish oil demand.

Light, sweet crude for August delivery settled $US1.07 lower, or 1.5%, at $US69.16 a barrel in New York.

Crude fell in sentiment with lower stocks, and on concerns that weakness in the economy will drag on longer than expected, denting oil demand.

Gold futures rose, marking their first weekly gain in four as a weaker US dollar and record-low interest rates boosted the metal's investment appeal.

August gold rose $US1.50, or 0.2%, to end at $US941 an ounce in New York. It rose to $949 earlier in the session. The expired June contract gained $US1.60, or 0.2%, to $US940.70.

Currencies: Dollar, Swiss franc down

The US dollar declined the most against the euro in a month and dropped versus the yen after China repeated its call for a new global currency.

The Swiss franc declined against the euro and dollar this week as foreign-exchange analysts said the central bank sold its currency three times to support the economy.

The dollar fell 0.9% to $US1.4056 per euro this week from $US1.3937 on June 19, the swiftest depreciation since the five days ended May 29. The dollar fell 1.1% to ¥95.18 from ¥96.27, its third consecutive weekly drop.

The euro decreased 0.3% to ¥133.85 from ¥134.18.