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Wall Street ends down in late selloff; Facebook and China weigh

Published 05/28/2020, 06:49 AM
Updated 05/28/2020, 06:26 PM
© Reuters. New York Stock Exchange opens during COVID-19

© Reuters. New York Stock Exchange opens during COVID-19

By Caroline Valetkevitch

(Reuters) - Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.

Shares of Twitter Inc (N:TWTR) ended down 4.4% and Facebook Inc (O:FB) fell 1.6% following news of the executive order. The White House, after the market close, said Trump had signed the order, which removes a liability shield they currently enjoy.

Trump said he was directing Attorney General William Barr to work with states to enforce their own laws against what he described as deceptive business practices by social media companies.

Concerns about China-U.S. relations may also have driven the late decline. White House economic adviser Larry Kudlow told CNBC on Thursday that Hong Kong may now be needed to be treated like China when it comes to trade and other matters, echoing remarks by Secretary of State Mike Pompeo on Wednesday.

"We are concerned (it's) saber rattling with China... It was just a big selloff because of that," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York, New York.

Stocks had been higher for most of the session as investors continued to bet on a swift recovery from the coronavirus-driven economic slump.

Worsening ties in recent weeks between the United States and China, the world's two largest economies, could pose a threat to the stock market's strong recovery from its steep selloff.

The Dow Jones Industrial Average (DJI) fell 147.63 points, or 0.58%, to 25,400.64, the S&P 500 (SPX) lost 6.4 points, or 0.21%, to 3,029.73 and the Nasdaq Composite (IXIC) dropped 43.37 points, or 0.46%, to 9,368.99.

The S&P 500 (SPX) is still up sharply from the low hit in March as a restart in business activity after weeks of shutdown and massive amounts of stimulus measures to support the economy have driven hopes of a strong recovery.

Boeing Co (N:BA) said it had resumed production of its 737 MAX passenger jet at its Washington state plant, although at a "low rate."

Declining issues outnumbered advancing ones on the NYSE by a 1.16-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.

Volume on U.S. exchanges was 11.25 billion shares, compared to the 11.26 billion average for the full session over the last 20 trading days.

© Reuters. New York Stock Exchange opens during COVID-19

The S&P 500 posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 67 new highs and seven new lows.

Latest comments

there will be a huge sell off in equities soon.. the emperor has no clothes.. i.e. companies have no earnings.. S&P target 2200 within 3 months
are we still following China to buy a stock????
Correct the headline. They were selling all day manipulating prices up and finally when finished they show really what they were doing and going. Now a bit of reality.
Well  Drift ON healthcare and tech is fine for me But drift WHY? And funny thing - VIX is also up, together with S&P
Maybe because the smart money knows things are not really changing? ... that's why day trading is so hard and most fail miserably at it
Everyday the same sh.. be a bit more creative ;-)
Same ***everyday, please change the headline...The market is going up just beacuse the FED is buying everything even the rubbish...
Same headline every day. Wash, rinse, repeat.
Investors are "shrugging off" 40 million unemployed. They are "looking past" negative GDP. They are "upbeat" about the economy re-opening. They are "optimistic"  that about all of the businesses that filed for chapter 11........... This is going to end bad.
 It is speculated that money is being funneled through GS  to buy the stocks. And since GS have no skin in the game, this is an opportunity for a BIG SHORT for BIG PROFITS, because you know our government never thought of that.
How the *******do you know how this is going to "end"?  The market is pricing in a quick recovery and a Trump defeat, all positive news for the US and our economy.  The fact is, people are not panic selling, in fact they are buying, they want to own stocks, and that's the reason the market is rising.  The stock market is not the economy, they are floating shares of the world's largest corporations.
 Because BS like this has never ended good. That's why.
sp500 @ 3500 by the end of summer. even bank shares are starting to outperform
Just wait until they realize the insane damage they did with lockouts. Even essential jobs are now on the line because even these business will have less sales with everyone waiting in line.
Pricing in a Biden win.
What are the chances of Biden's election?
  Fivethirtyseven hasn't posted any predictions, but Biden has significant leads in many key swing states that effectively block Trump's path to reelection.  If the election were held today, Trump would lose and he knows it.  But, show up and vote, folks, a lot can happen in 5 months.
HA HA HA HA - You freakin fool, Trump is the one pumping the stock market. Biden is a newly minted socialist. Why would markets want to get the guy out that is handing them free money to replace him with a democrat
There's just too much free money... markets can't help but only go up
It's barely pricing Q1 now. But market likely priced Q2 during March lows. Not only FED won't let the market retest such lows, but we have stable large cap companies like Amazon in major index. Such a good moment for some companies may sometimes trigger deliberated buying. Which is what's been happening these days. Many companies are overvalued, but it's QE market. It will always be overvalued. We have to buy the dip regardless, whenever it happens. It's a consensus in the market.
Gdp will be negative for long time and market will go to the stars 40k dj who cares of GDP, unemployment and and so on: just buy!!
GDP NEGATIVE 5%. market is up. Stonks only go up
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