The Dow Jones Industrial Average was set to close the week lower for the first time this year as concerns surrounding slowing global growth and the lack of progress on US/China trade talks plagued Wall Street. Weighed down by losses in financial and trade-sensitive industrial stocks, the blue chip index is more than 200 points away from the prior close and back under its 200-day moving average.
Thursday's news that President Donald Trump isn't meeting with Chinese president Xi Jinping until after the second tranche of tariffs hit on March 1 continued to reverberate throughout global financial markets overnight. Coupled with news that Trump is set to sign an order banning Chinese telecom equipment sales in the US, the industrial sector was facing significant selling pressure with Dow components Boeing ( BA ), Caterpillar ( CAT ) and DowDuPont ( DWDP ) 1%-2% lower.
Another contraction in Italian industrial production (fourth in a row) and the downward revision to GDP forecasts from the Reserve Bank of Australia exacerbated global growth stress on global financial markets. European bourses were lower with Germany's DAX taking the brunt on losses in auto and oil stocks.
In equities, the gloomy global growth outlook and stagnant trade talks overshadowed upbeat quarterly results from Coty ( COTY ), Expedia ( EXPE ), Columbia Sportswear (COLM), Mattel (MAT) and News Corp (NWSA).
In other news, shares of Amazon (AMZN) are at their lowest level in five weeks as the backlash from CEO Jeff Bezos' battle with The National Enquirer appears to be weighing on the stock. The company is also reportedly reconsidering its decision to build a second headquarters in Queens, N.Y. due to outcry over tax benefits the online retail giant will receive.
Crude oil was down $0.38 to $52.26 per barrel. Natural gas was up $0.02 to $2.57 per 1 million BTU. Gold was up $3.50 to $1.317.70 an ounce, while silver was up $0.07 to $15.78 an ounce. Copper was down $0.01 to $2.81 per pound.
Among energy ETFs, the United States Oil Fund was down 0.18% to $11.05 with the United States Natural Gas Fund up 0.35% to $23.03. Among precious-metal funds, the Market Vectors Gold Miners ETF was up 0.89% to 22.22 while SPDR Gold Shares were up 0.42% to $124.26. The iShares Silver Trust was up 0.34% to $14.82.
Here's where the markets stand at mid-day:
US MARKETS
NYSE Composite Index was down 96.06 points (-0.78%) to 12,199.16
Dow Jones Industrial Index was down 222.66 points (-0.88%) to 24,946.87
S&P 500 was down 21.90 points (-0.81%) to 2,684.15
Nasdaq Composite Index was down 43.73 points (-0.60%) to 7,244.62
GLOBAL SENTIMENT
FTSE 100 was down 22.40 points (-0.32%) to 7,071.18
DAX was down 115.24 points (-1.05%) to 10,906.788
CAC 40 was 23.92 points (-0.48%) to 4,961.64
Nikkei 225 was down 418.11 points (-2.01%) to 20,333.17
Hang Seng Index was down 43.89 points (-0.16%) to 27,946.32
Shanghai China Composite Index was closed
NYSE SECTOR INDICES
NYSE Energy Sector Index was down 164.79 points (-1.60%) to 10,146.53
NYSE Financial Sector Index was down 68.25 points (-0.90%) to 7,540.57
NYSE Healthcare Sector Index was down 53.53 points (-0.34%) to 15,578.82
UPSIDE MOVERS
(+) COTY (+27.34%) Q2 results beat Wall Street's estimates
(+) MAT (+22.41%) Reported surprise Q4 profit, beat revenue estimates-
(+) COLM (+15.92%) Reported stronger-than-expected Q4 results, set FY19 guidance above street, increases share repurchase by $200 million
(+) SKX (+15.02%) Swings to a profit in Q4, revenue misses
DOWNSIDE MOVERS:
(-) VCRA (-22.93%) Missed Q4 sales estimates, issued soft guidance
(-) CARB (-19.80%) Reported mixed Q4 results, announced acquisition of Webfoot for $618.5 mln
(-) GT (-8.30%) Sales and profits fall more than expected
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
