US Stocks Close Week at Record Weekly Low as Crises Offset Reports

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US Stocks Close Week at Record Weekly Low as Crises Offset Reports

The Standard & Poor’s 500 Index dropped for a second day on Friday, pushing the gauge to its lowest weekly decline in two years, as worries over Argentina and Portugal offset data showing the Federal Reserve may have sufficient space to keep rates low.

JPMorgan Chase & Co. and Morgan Stanley dropped more than 2.1% as a committee determined that Argentina’s default will kick off a $1 billion of credit-default trades. LinkedIn Corp added 12% after predicting revenue that topped estimates. Procter & Gamble Co. added 3% as profit beat estimates as the firm cut costs.

The S&P 500 plunged 0.3% to 1,925.15 as of 4 pm in New York, extending its weekly loss to 2.7%, the worst since June 2012. The Dow Jones Industrial Average lost 69.93 points or 0.4% to 16,493.37, after reversing its gains for the year on Thursday. About 7.3 billion shares were traded on US exchanges on Friday, 27% higher than the average for the past three months.

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“Whether it’s the Portuguese bank, Argentina or continued unrest in the Middle East, these things are seemingly mattering more to investors now.All of a sudden, geopolitical things that didn’t matter a few weeks ago are starting to be more relevant concerns, and they’re serving as catalysts to sell,” Matt McCormick of Bahl & Gaynor Inc. in Cincinnati told Bloomberg.

US shares were part of a worldwide selloff on Thursday, bringing the S&P 500 to its first monthly loss since January, after several firms including Samsung Electronics posted disappointing results.

According to ABC News, Chevron, the number 2 energy firm in the world, lost $1.93 or 1.5% to $127.31. The oil and gas powerhouse posted earnings that topped analysts’ projections, although its gas and oil output sank in the second quarter. Part of Chevron’s earnings came from one-off asset disposals.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com.