Left Menu
Development News Edition

US STOCKS-Wall Street mixed as trade hopes capped by Apple drop

Reuters | New York | Updated: 14-09-2019 00:01 IST | Created: 14-09-2019 00:01 IST
US STOCKS-Wall Street mixed as trade hopes capped by Apple drop
Image Credit: Flickr

Wall Street was mixed on Friday, with the S&P 500 and the Dow hovering just below all-time highs as cautious optimism regarding easing U.S.-China trade tensions was held in check by a drop in Apple stock. Tariff-vulnerable industrials helped keep the blue chip Dow in positive territory, which was on track for its eighth straight daily advance, its longest winning streak since May 2018.

All three major U.S. stock indexes looked set to post their third straight weekly gains, capping a week that saw signs of a potential thaw in the trade war between the world's two largest economies that has gripped markets for months. Apple Inc was the biggest drag on the major stock averages, dropping 1.8% after Goldman Sachs cut its price target for the iPhone maker's shares.

Beijing announced it would exempt some U.S. agricultural products from additional tariffs after President Donald Trump suggested he could be open to an interim deal, the latest in a series of conciliatory gestures by both sides of the trade war ahead of next month's negotiations in Washington. "We've had these small concessions back and forth, which at minimum gives investors some confidence that things are moving in the right direction," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. "I don't think the Chinese are going to roll over on trade but they recognize there is a mutual benefit to keep the U.S. from escalating the trade war."

On the economic front, U.S. retail sales increased in August at twice the rate analysts expected, according the Commerce Department, suggesting that strong consumer spending will continue to support the longest-ever U.S. economic expansion. Ebbing trade jitters and upbeat retail sales data helped U.S. Treasury yields reach multi-week highs.

"Investors will reevaluate their appetite for equities at the next big catalyst event, which will be the Fed meeting," Sroka added. Indeed, the U.S. Federal Reserve is widely expected to cut interest rates by 25 basis points at the conclusion of its monetary policy meeting next week.

The Dow Jones Industrial Average rose 56.58 points, or 0.21%, to 27,239.03, the S&P 500 lost 1.06 points, or 0.04%, to 3,008.51 and the Nasdaq Composite dropped 16.24 points, or 0.2%, to 8,178.23. Of the 11 major sectors in the S&P 500, seven were in the red, with real estate suffering the largest percentage loss.

Materials and financial stocks were the biggest gainers, up 1.3% and 1.0%, respectively. Chipmaker Broadcom Inc slipped 2.5% after the company missed quarterly revenue estimates late Thursday and said that while semiconductor demand has likely hit bottom, the timing of a recovery remains uncertain.

Progressive Corp fell 5.3% after the insurer reported a 36% year-on-year drop in August net income. Lumber Liquidators Holdings Inc plunged 12.1% after founder Thomas Sullivan told Bloomberg he was holding off on plans to take the company private.

Tyson Foods Inc, the largest U.S. meat processor, advanced 2.3% on China's tariff exemption announcement. Declining issues outnumbered advancing ones on the NYSE by a 1.02-to-1 ratio; on Nasdaq, a 1.38-to-1 ratio favored advancers.

The S&P 500 posted 19 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 77 new highs and 19 new lows.

Also Read: Area of standoff between Indian and PLA troops in Ladakh part of Chinese territory: Beijing


TRENDING

OPINION / BLOG / INTERVIEW

South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Videos

Latest News

Scientists find evidence of virus-eating microorganisms

Scientists have found the first compelling evidence that two groups of ecologically important marine microorganisms could be eating viruses -- catching their prey and engulfing them, an advance that may lead to a better understanding of the...

How hormone therapy slows progression of atherosclerosis

As one of the most common treatments for effectively managing menopause symptoms, hormone therapy HT is also known to provide multiple health benefits, including slowing the progression of atherosclerosis. A study based on Early Versus Late...

RBI approves 3-member committee of directors to manage Lakshmi Vilas Bank

The Reserve Bank of India RBI has approved a three-member committee of directors to run the day-to-day functioning of cash-strapped Lakshmi Vilas Bank. The development comes a few days after its shareholders rejected the appointment of seve...

Hilary Swank says she developed claustrophobia while filming Netflix’s ‘Away’

Oscar winner Hilary Swank says she became severely claustrophobic while shooting for Netflixs new sci-fi fantasy series Away. In the show, the 46-year-old actor plays astronaut Emma Green, who is on a years-long mission to Mars, and weari...

Give Feedback