S&P 500 wavers after Trump trade comments, Nvidia hits Nasdaq

By Sruthi Shankar (Reuters) - The S&P 500 swung between gains and losses on Friday following conflicting reports on a U.S. trade deal with China, while weakness in chipmaker Nvidia weighed on the Nasdaq.

Reuters November 17, 2018 01:05:45 IST
S&P 500 wavers after Trump trade comments, Nvidia hits Nasdaq

SP 500 wavers after Trump trade comments Nvidia hits Nasdaq

By Sruthi Shankar

(Reuters) - The S&P 500 swung between gains and losses on Friday following conflicting reports on a U.S. trade deal with China, while weakness in chipmaker Nvidia weighed on the Nasdaq.

President Donald Trump said the United States may not have to impose further tariffs on China, but added the situation was still not acceptable to him.

Stocks have been volatile as differing reports on the outcome of talks expected between Trump and Chinese President Xi Jinping at the sidelines of a G20 summit in Argentina later this month kept investors on edge.

Wall Street opened lower after disappointing earnings from chip companies and retailers as well as Brexit-related concerns.

Nvidia Corp fell 19.1 percent after the chip designer blamed unsold chips piling up as the cryptocurrency mining boom fizzles out.

The Philadelphia Semiconductor index <.SOX> was down 1.5 percent and technology stocks <.SPLRCT> fell 0.2 percent.

"You have this macro backdrop that is shifting and changing and it's meeting somewhat disappointing earnings from the tech sector and that is causing further volatility," said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management in Milwaukee, Wisconsin.

Taking some pressure off the markets were comments from new Federal Reserve vice chair Richard Clarida about U.S. interest rates nearing the central bank's estimates of a neutral rate.

Analysts said Clarida's comments suggested that the Fed may be nearing the end of its tightening cycle. The bank typically stops raising rates once they hit the neutral level.

Worries about rising interest rates, peaking corporate earnings and signs of a slowdown in global growth have prompted investors to sell off risky assets. After the S&P 500's weakest performance in seven years in October, stocks are still struggling to find footing.

At 1:25 p.m. ET the Dow Jones Industrial Average <.DJI> was up 86.05 points, or 0.34 percent, at 25,375.32, the S&P 500 <.SPX> was up 2.36 points, or 0.09 percent, at 2,732.56 and the Nasdaq Composite <.IXIC> was down 29.29 points, or 0.40 percent, at 7,229.75.

Energy stocks rose 0.8 percent as oil prices recovered from sharp losses this week on expectations that OPEC and its allies would agree to cut output next month. [O/R]

In a gloomy week for retailers, department store operator Nordstrom Inc fell 14.7 percent after quarterly same-store sales missed estimates and the company reported charges from a credit card problem.

Nordstrom was the biggest decliner on the S&P discretionary index <.SPLRCD>, which fell 0.7 percent.

Seven of the 11 major S&P sectors were higher, with utilities <.SPLRCU> rising 1.2 percent as PG&E Corp jumped 38.5 percent, following steep losses in the past six days.

Bloomberg reported on Thursday that a regulatory official said it did not want PG&E to go into bankruptcy should the utility be found responsible for the deadly wildfires in northern California.

Advancing issues outnumbered decliners for a 1.02-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.25-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and 10 new lows, while the Nasdaq recorded 22 new highs and 93 new lows.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.