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Stocks - Trade Fears Push Wall Street Lower as Volatility Reigns

Published 08/09/2019, 03:53 PM
Updated 08/09/2019, 05:07 PM
© Reuters.

Investing.com – In a week of extremes, stocks finished mostly lower on Friday as the U.S.-China trade dispute produced another day of volatility.

Every day produced either big losses or big gains. On Wednesday, there was a huge loss at the open, followed by a robust recovery.

Friday was like Wednesday, with the major averages falling sharply after President Donald Trump suggested U.S. negotiators would not meet with Chinese trade negotiators next month and there was talk the U.S. would ban sales of chips from U.S. companies to Chinese telecom Huawei.

And then it was as if someone said "never mind" until another wave of selling hit in the last few minutes, a signal that investors are nervous about what will come next week.

The Dow , poster child for the volatility all week, was off as many as 281 points early in the day before recovering to a small gain but losing about 100 points in the last 10 minutes. The index ended the day down 0.34%. The S&P 500 fell 0.66%. The NASDAQ Composite was off 1.0%.

For the week, the indexes were lower, but only modestly -- despite the volality. The Dow dropped about 0.8%. The S&P 500 was off 0.5%. The Nasdaq fell back 0.6%.

The indexes ended the week roughly 3% below their all-time highs reached in mid-to-late July.

While they're up handsomely for 2019, the averages actually finished under their peaks in the late summer and early fall of 2018.

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Tech, energy and consumer discretionary stocks were lower, with semiconductor stocks among the weakest because of the U.S.-China fight. Healthcare, utility and financial stocks were mostly higher.

Key stocks like Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) closed down about 0.8%. McDonald’s (NYSE:MCD) hit a new 52-week high of $221.93 and was the Dow leader with a 1.44% gain. Only eight Dow stocks were higher.

Retailers had a miserable day. JC Penney (NYSE:JCP) moved sharply lower after news the department-store chain's shares could be delisted from the New York Stock Exchange. The shares closed at just 60 cents, down 13.5%. Macy’s (NYSE:M) was off 4.4%. Nordstrom (NYSE:JWN) fell 2.7%.

While energy stocks were lower, oil prices were higher on news that Saudi Arabia plans to aggressively cut output to push oil higher. West Texas Intermediate crude jumped 3.7% to $54.50 a barrel. Brent Oil Futures, the benchmark global crude, added 2% to $58.53,

Gold futures drifted back to $1,508.50 an ounce on the day and ended the week up 3.5% and above $1,500 for the week for the first time since 2013. Silver, platinum and palladium also were higher on the week.

Next week, the earning season is starting to wind down. Economic reports include the consumer price index report for July, due Tuesday, and reports on building permits and housing starts, due Friday.

Winners and losers in the S&P 500.

Biotech company Amgen (NASDAQ:AMGN), News Corp B (NASDAQ:NWS) and News Corp A (NASDAQ:NWSA) and MarketAxMarketAxess Holdings (NASDAQ:MKTX) were among the top performing S&P 500 stocks on the day.

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Software company DXC Technology (NYSE:DXC) (formerly Computer Sciences), biopharmaceutical company Nektar Therapeutics (NASDAQ:NKTR) and troubled food giant Kraft Heinz (NASDAQ:KHC) were among the weakest S&P performers on the day.

Latest comments

maybe you don't always need an iphone. short sighted to say the least
Trade war fears was last year's news yawn zzzzzzzzz'.    How about a little less fortune telling and look at what the data is saying, the economy is rock'in and roll'in.
... Long ago. I understand he is standing up for his people. But do it smart like the Chinese did not aggressively and in a hurry because of an upcoming election and he needs results. If he does win the election he better make things right with the Chinese so we in the world can leave in peace and not stress on how much extra we gonna pay for a new i-phone we already stressing enough
I feel like this is an unfair market. I know it's not supposed to be fair but I can't sleep at night busy thinking that Donald Trump might say something and I wake up the next day with my capital wiped out. We supposed to trade on economics and fundamentals drivers not trade on market manipulators like Trump because of his ego and fact that he can't get over the fact that China worked hard to be were the are now and its not their fault that The US Government was sleeping and let it happen until it was to late. Trump is gonna fail his desperation is getting the better of him. Chinese are quiet for a reason Tariffs are not enough to make them Sweat and start to Dance on Trump's tune. If things start to heat up and things get real bad for their side they with unload their weapons and not give a *****that they would be labeled as a currency manipulator they will fight till their last breath. They have discipline Trump doesn't that is facts his just a bully that got his grandfathers bullied
no gains for an entire year. . . to be honest. . . this is the absolute worst market I have ever traded in
LMAO...you must have missed the fun of 1987 and 2008! Read Wikipedia's "Stock Market Crash" to see what you have to look forward to!
These are the same banal garbage articles. I get better insight from ZeroHedge
Who wrote this crud? I don't know about stocks but futures are up. Almost back to where they were Tuesday. NOTHING like Wednesday................. And some, like gold are at extreme highs. Look at the charts before you write this stuff. Or is this an attempt to try to control the market? Investing minds want to know.
...and then on Monday, back up "robustly" ride the waves and relax
Thank you for the update
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