U.S. stocks indexes edged mostly lower in morning trading Friday, adding to the market’s modest losses from a day earlier. Banks, technology and energy companies fell, offsetting gains by industrial stocks. Bond prices rose, sending yields lower.
KEEPING SCORE: The S&P 500 index slipped 3 points, or 0.1 per cent, to 2,716 as of 11:39 a.m. ET. The Dow Jones industrial average gained 35 points, or 0.1 per cent, to 24,749. The Nasdaq composite fell 7 points, or 0.1 per cent, to 7,375. The Russell 2000 index of smaller-company stocks picked up 1 point, or 0.1 per cent, to 1,627. Rising and falling stocks were evenly split on the New York Stock Exchange.
CHOPPY WEEK: After a strong start to the month, markets have been choppy this week as investors turned the page on the first-quarter earnings reporting season and weighed the implications of rising interest rates and the ongoing trade tensions between the U.S. and China. The countries, which have threatened tariffs on each other, were holding discussions aimed at averting a trade war between the world’s two biggest economies.
THE QUOTE: “Markets are taking a little bit of a breather and waiting for something to happen before reacting,” said Veronica Willis, investment strategy analyst for Wells Fargo Investment Institute. “They still don’t know what to expect, what kind of compromises may be made between the U.S. and China in terms of trade.”
SOUP’S OFF: Campbell Soup plunged 10.2 per cent to $35.22 after the packaged foods company lowered its profit forecast and said that its CEO, Denise Morrison, was retiring effectively immediately.
NOT A GOOD LOOK: Nordstrom tumbled 9.3 per cent to $46.20 after the upscale department store chain said sales at established stores, a key metric for retailers, showed meagre gains in the first quarter.
FALLING SHORT: Applied Materials gave up 8.3 per cent to $49.46 after the maker of chipmaking equipment forecast revenue for the current quarter that was below Wall Street’s estimates.
ON THE RISE: Shares in industrials stocks rose. Deere & Co. added 5.1 per cent to $154.37 after the company forecast 35 per cent growth in equipment sales for its third quarter.
PAYING UP: PayPal Holdings added 2.6 per cent to $81.26 on news that the company is buying Stockholm-based payment processing startup iZettle for $2.2 billion with the aim of expanding into Europe and Latin America.
ENERGY: Benchmark U.S. crude oil fell 12 cents to $71.37 a barrel in New York. Brent crude, used to price international oil, added 5 cents to $79.35 a barrel in London.
The slide in oil prices was a drag on energy stocks. Range Resources slid lost 2.7 per cent to $15.25.
BOND YIELDS: Bond prices rose. The yield on the 10-year Treasury fell to 3.07 per cent from 3.12 per cent late Thursday. The pullback in bond yields, which affect interest rates on mortgages and other consumer loans, weighed on bank stocks. Citigroup fell 1.3 per cent to $70.62.
CURRENCIES: The dollar fell to 110.72 yen from 110.75 yen on Thursday. The euro weakened to $1.1768 from $1.1799.
MARKETS OVERSEAS: Major indexes in Europe fell. Germany’s DAX gave up 0.3 per cent, while France’s CAC 40 slid 0.1 per cent. Britain’s FTSE 100 lost 0.2 per cent. Asian stock markets finished mostly higher. Japan’s Nikkei 225 added 0.4 per cent and South Korea’s Kospi index rose 0.5 per cent. Hong Kong’s Hang Seng index gained 0.3 per cent.