Wall Street mixed as trade hopes capped by Apple drop

By Stephen Culp NEW YORK (Reuters) - 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.

Reuters September 14, 2019 02:07:14 IST
Wall Street mixed as trade hopes capped by Apple drop

Wall Street mixed as trade hopes capped by Apple drop

By Stephen Culp

NEW YORK (Reuters) - 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 recognise 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 <.DJI> rose 56.58 points, or 0.21%, to 27,239.03, the S&P 500 <.SPX> lost 1.06 points, or 0.04%, to 3,008.51 and the Nasdaq Composite <.IXIC> 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 <.SPLRCR> suffering the largest percentage loss.

Materials <.SPLRCM> and financial <.SPSY> 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 favoured 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.

(Reporting by Stephen Culp; Editing by Cynthia Osterman)

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.