U.S. stocks close lower, preserve gains for week

US stock indexes closed mixed Wednesday afternoon after a morning of gains as Apple leads technology companies higher.

Stocks were moderately lower Friday, pushed lower by the price of oil.

The Nasdaq gave up 5.12 (-0.10 percent) to close at 5,244.57, while the S&P 500 finished at 2,139.16, down 8.10 (-0.38 percent) from its open.

Apple (AAPL) slid 0.6% after a four-day advance that propelled it 12% higher, amid growing buzz over its updated iPhone.

The Fed may view the rise in inflation as healthy enough to consider lifting benchmark interest rates at its policy meeting. Initial jobless claims turned out to be 260 thousand in August, nearly in line with expectations while Producer Price index for August came in unchanged.

With policy makers watching data for signs of stronger growth, a report today showed the cost of living in the US rose more than projected in August, indicating inflation continues to move closer to the Fed’s goal.

U.S. stocks slipped as investors awaited next week’s Federal Reserve meeting, with economic indicators pointing to uneven growth in the world’s largest economy. Still, the chances for September rate hike are just 12% down from 15% in previous day, according to FedWatch tool.

Stocks fell as investors dumped shares of banks in North America and Europe after the U.S. Department of Justice proposed Deutsche Bank (DBKGn.DE) pay $14 billion to settle an investigation of its selling of mortgage-backed securities. The sum exceeds by far investors estimates and may severely hurt the financial statement of German Bank.

Germany’s 10-year bond yield fell three basis points, briefly turning negative for the first time in a week, and wiping out a weekly increase that had been driven by the European Central Bank’s failure to flag an immediate expansion of bond-buying program. Another decliner was the energy sector which was looking down as oil retreated on global oversupply worries on resumption of exports form Libya and Nigeria.

The S&P/TSX composite index lost 52.83 points Friday to 14,450.84. “You’ve got Deutsche Bank, which is scaring everybody”. USA crude fell 1.6% Friday. EURUSD pair was last traded at $1.1227 slightly down from Thursday. Mitsubishi stocks rose 2.7% while Resona Holdings added 3.4%.

Compared to the same month a year ago, the headline consumer price index was up by 1.1 percent in August, reflecting an acceleration from the 0.8 percent growth in July. Utilities rallied for a third day, the longest winning streak in two months, while health-care shares were little changed.

OIL PRICES: Benchmark U.S. crude lost 88 cents to $43.03 per barrel in NY.

The weakness in the gold sector came amid a decrease by the price of the precious metal, as gold for December delivery slid $7.80 to $1,310.20 an ounce.

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