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Stocks - S&P 500 Ends Lower as White House China Plan Spooks Market

Stock Markets Sep 27, 2019 04:56PM ET
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Investing.com - Stocks finished down Friday -- but well off their lows -- after a Bloomberg News report said the Trump Administration was considering ways to limit Chinese access to U.S. capital markets.

The S&P 500 ended off 0.53%. The Dow Jones industrials finished down 0.26%, and the Nasdaq Composite ended down 1.13%. The Nasdaq 100 index dropped 1.16%.

Among ideas being discussed, according to Bloomberg, were delisting Chinese companies from U.S. exchanges and limiting investments by, say, pension funds into Chinese companies.

The report gutted a rally at the open that saw the Dow industrials up as many as 122 points early in the session. At their low, the blue chips were off as many as 175 points before late buying kicked in.

The losses ensured stocks ended lower for a second-straight week with just one trading day left in September.

The S&P 500 was off 1% on the week, with the Dow down 0.4% and the Nasdaq off 2.2%.

As of Friday, the S&P 500 was up 1.2% for the month, with the Dow up 1.58%. The Nasdaq is down 0.3%.

The year is still quite strong with the S&P still up 18.2%, the Dow up almost 15% and the Nasdaq up 19.7%.

The selling hit tech stocks like Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU), down on gross margin guidance, as well as communications services stocks like Google parent Alphabet (NASDAQ:GOOGL) and Facebook (NASDAQ:FB).

That said, the stall that's taken over the stock market is still in place. The S&P's close of 2,962 was its sixth-straight below 3,000. The Nasdaq finished under 8,000 for the second time in four sessions. The S&P 500 is now 2.19% below its July all-time high. The Dow is off 2.1% below its peak, with the Nasdaq now 4.8% down.

The stall is primarily due to the ongoing U.S.-China trade battle, even as negotiators are supposed to meet starting Oct. 10. The Trump impeachment inquiry, begun this week, is adding to the malaise. In addition, consumer spending slowed more than expected in August, suggesting the global economic slowdown is hitting the United States.

Health care stocks seemed to hold their own Friday. But the week was rocky in part because of Wall Street fears that Sen. Elizabeth Warren could be the Democratic candidate for president next year. She has been is a fierce critic of big pharmaceuticals companies and private health insurers.

The poster child of the worry is Dow component UnitedHealth Group (NYSE:UNH), up most of the day until the selling frenzy started. It ended down slightly on the day. It fell 7.6% on the week and is down 8% for the month and 13.6% for the year.

Financial stocks were higher led by Wells Fargo (NYSE:WFC), up 3.8% after naming Charles Scharf CEO, ending a six-month search. Scharf has been CEO of Bank of New York Mellon (NYSE:BK). Wells Fargo has struggled to resolve a host of operational scandals that hurt small customers especially.

Also higher were retailers, including Dillards (NYSE:DDS), Nordstrom (NYSE:JWN) and Best Buy (NYSE:BBY) and Macy’s (NYSE:M).

Oil prices moved lower because of trade jitters and the tensions over the House impeachment inquiry into President Trump. WTI crude fell 50 cents to $55.91 a barrel. Brent crude was off 83 cents to $61.19.

Gold also fell $8.80 to $1,506.40 an ounce in New York.

Interest rates started higher as stocks rallied at the open, but fell back as investors sought safety in bonds. The 10-Year Treasury yield, once up to 1.725%, fell back to 1.684%, a slight decline on the day.

Stocks - S&P 500 Ends Lower as White House China Plan Spooks Market
 

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Comments (7)
muneeb khan
muneeb Sep 28, 2019 1:34PM ET
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I advised all amarican next time don't give vote to trump this guy not good for stock market
muneeb khan
muneeb Sep 28, 2019 1:33PM ET
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This news chennels showing alwas bad news. Trump why not stop this
Richard Lipsit
Richard Lipsit Sep 28, 2019 9:02AM ET
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I was seeing signs of China cracking and giving ground, U.S. starts impeachment inquiries? China is a force, that requires the U.S. to act as one Nation to beat.
Cee Kay
Cee Kay Sep 28, 2019 4:14AM ET
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Sources said or just a piece of fake news?
Ka Ioi Pun
Ka Ioi Pun Sep 28, 2019 3:58AM ET
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can't believe the coming national day of China can get Trump malaises:)
David David
David9 Sep 27, 2019 8:04PM ET
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I told you guys ... China is a beast and it is very hard to win against China. If Trump keeps this up, we will continue to hear the China Roar. When China Roar, worldwide markets will shattered. Trump is pretty much done. He has no chance to win. President Xi must be sitting back and laughing so hard at Trump ruin the US economy.
Alex Cavasin
Alex Cavasin Sep 27, 2019 8:04PM ET
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China has been playing it cool i give you that David but when a nation with such a tight grip on pretty much everything has to start dumping trillions of bonds it signals, at least to me, that not everything is as peachy as you think. China has been quietly "doing QE" for much longer then anyone ever has...IMHO president Xi is far from laughing and probably sweating more over trade alone then president Trump with everything on his plate.
Danny Thai
Danny Thai Sep 27, 2019 8:04PM ET
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Argeed that China is roaring out loud as it was during the 2 Opium wars and finally China was divided into 7 concessions occupied by Japan, America, UK, France, Spain, Portugal...
David David
David9 Sep 27, 2019 8:04PM ET
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No, today's China is powerful. I will bet a million, no country will dare to take an inch of China's land again. China is a Sleeping Dragon awaken by Trump. From now on, this Dragon is ready to lead the world as all nations will look to them for economic growth. This is why Warren Buffet said, China has found their secret sauce.
Danny Thai
Danny Thai Sep 27, 2019 8:04PM ET
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Yup today china is such a powerful and it had to use those tanks to *****some thounsands students (who had no piece of iron in their hands) of the 1989 Tiananmen Square protests.And now China dont know how to handle those protests in Hongkong endurance for 17 weeks and counting!What a China powerful nation!It’s insulting for you to brag.
Andrew Gatlin
JustaGuy Sep 27, 2019 7:08PM ET
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Monday's Headline - Trump tweets China will give U.S. everything it wants.  lol
Erski Gumby
SB20 Sep 27, 2019 7:08PM ET
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Trust the fundamentals and technicals and you wont have to worry about the fake news and tweets.
 
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