The US markets closed mostly lower on Friday, while Alibaba, the biggest IPO to ever hit Wall Street, made a huge splash. Dallas Federal Reserve Bank President Richard Fisher stated that the Federal Reserve should start raising US interest rates in the spring, earlier than many investors currently expect, and should do so both slowly and gradually. Fisher added that already there are signs of financial excess in markets, and although inflation currently is not a problem, continued low rates could spark unwanted price pressures. Fisher indicated he believed rates should move up in quarter-point increments. Fitch Ratings Inc. affirmed its Triple-A rating for the US, citing the nation’s unparalleled financing flexibility as the issuer of the world’s pre-eminent reserve currency and benchmark fixed-income asset, and as home to the world’s deepest and most liquid capital markets. The rating firm added that renewed brinkmanship over the federal debt ceiling is possible in 2015, although its suspension in February 2014 was in a timely manner and in a way that avoided casting uncertainty over the full faith and credit of the US.
On the economy front, signaling moderate economic growth through the holiday season, the leading economic index for the US rose 0.2% in August to 103.8. The leading indicators point to an economy that is continuing to gain traction, but most likely won’t repeat its stellar second quarter performance in the second half. Among the 10 indicators that make up the Conference Board’s gauge, three made positive contributions in August, led by the interest rate spread. The coincident index, which measures current conditions, rose 0.2% in August, while the lagging index advanced by 0.3%. For July, the LEI’s growth was revised to 1.1% from a prior estimate of 0.9%.
Nasdaq was down by 13.64 points or 0.30 percent to 4,579.79, S&P 500 ended lower by 0.96 points or 0.05 percent to 2,010.40, while Dow Jones Industrial Average added 13.75 points or 0.08 percent to 17,279.74.
The Indian ADRs closed mostly in red on Friday; ICICI Bank was down by 1.03%, HDFC Bank was down by 0.54%, Dr. Reddy’s Lab was down by 0.41% and Wipro down by 0.41%. On the other hand, Infosys was up by 0.06%.