(Reuters) – The New York Stock Exchange fell at the open on Friday after six consecutive sessions of gains, as a drop in U.S. homebuilding in July dampened confidence that had been buoyed by other encouraging economic data.
In early trading, the Dow Jones index lost 28.23 points, or 0.07%, to 40,534.83 points, and the broader Standard & Poor’s 500 fell 0.27% to 5,528.27 points.
The Nasdaq Composite fell by 0.43%, or 75.41 points, to 17,519.08 points.
US home construction figures have somewhat dampened the optimism caused by the release of retail sales figures.
The data indicated that inflation was moderating to a pace that would allow the U.S. Federal Reserve to begin its monetary easing cycle with a 25 basis point rate cut next month, rather than a more aggressive approach.
Next week, markets will be looking ahead to the Jackson Hole Symposium, a meeting of global monetary policymakers, where Fed Chairman Jerome Powell is expected to speak.
Investors are also awaiting the publication, around 14:00 GMT, of the figures from the University of Michigan’s survey on household morale.
The possibility of a rate cut is pushing down US sovereign bonds.
At the opening, the yield on ten-year Treasuries fell 3.8 basis points (bps) to 3.8883% while the yield on two-year securities fell 4.9 bps to 4.0518%.
In stocks, B. Riley Financial’s gained 26.19% at the open after its co-CEO and Chairman Bryant Riley announced his intention to acquire the investment bank for $212 million.
Applied Materials fell 3.25% after announcing Thursday that it expected fourth-quarter revenue to be just above consensus.
(Written by Pauline Foret, edited by Kate Entringer)
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