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US stocks rose on Friday and rebounded strongly, but the S & P 500 large cap index closed down nearly 1% for the week. Growing concerns over global growth have put downward pressure on riskier assets. US yields were mixed, with the two-year period continuing to move south. This week, the 30-year yield has passed the 2% mark, closing at record highs. Nvidia's strong financial results helped strengthen the semiconductor space, while US housing starts were less favorable than expected. All sectors were up on Friday, driven by gains in the financials and industry sectors. Utilities was the worst performing sector in a robust band. Crude oil prices have risen slightly but are down for the week. Gold prices fell slightly as the dollar traded sideways.
Nvidia improves its financial results
The Nvidia share has surged after better than expected financial results. The semi-giant's profit rose $ 1.24 a share, up from $ 1.15 a share, as analysts expect. Revenues were $ 2.58 billion, up from $ 2.54 billion. Nvidia's revenue fell 17% year-on-year during the quarter. The gaming sector, Nvidia's largest product, generated revenue of $ 1.31 billion, down 27% on an annualized basis and just above the consensus estimate of $ 1.30 billion. The company's data center business generated revenues of $ 655 million.
Housing starts in the fall
US housing starts fell for a third consecutive month in July, after a sharp decline in multi-family housing construction, but a seven-month increase in permits gave hope to a struggling housing market . Housing starts fell 4.0% to hit an annual rate of 1.191 million units last month, according to the Commerce Department. June data were revised downward to show that homebuilding reached a rate of 1.241 million units, instead of falling at a rate of 1.253 million units, as previously reported. According to forecasts, housing starts are expected to reach 1.257 million units in July. The 30-year fixed mortgage rate fell to 3.60% after a peak of 4.94% in November.
Trump hears from the CEO but not what he wants to hear
President Donald Trump held a teleconference with the CEOs of the three largest US banks while the stock market was in free fall earlier in the week. Trump held the conference call with Jamie Dimon, CEO of J.P. Morgan Chase, Brian Moynihan of Bank of America and Michael Corbat of Citigroup. The president asked the three men to give him a reading on the health of the American consumer. The leaders said that the consumer is doing well, but they could do even better if the problems, including that of China and the United States. commercial war have been solved. Unfortunately, that's not what Trump wanted to hear. He wants to build consensus to push the Fed to cut rates, and does not want to hear that he should reach an agreement with China that does not include tariffs.
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