MARKET SNAPSHOT: Stock Market Extends Losses After Worst One-day Tumble In 3 Months

By Sara Sjolin, MarketWatch Features Dow Jones Newswires

Investors absorb Trump issues, attacks in Spain

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U.S. stock-index benchmarks opened lower on Friday, extending the prior session's selloff that was partially fueled by a terrorist attack in Barcelona and rumors that an economic adviser to President Donald Trump might resign.

The Dow Jones Industrial Average traded 13 points, or less than 0.1%, lower to 21,735, while those for the S&P 500 index slipped 2 points, or less than 0.1%, to 2,428. The Nasdaq Composite Index retreated 3 points, or 0.1%, at 6,218. Gains in shares of chip-equipment supplier Applied Materials Inc.(AMAT), up 4.4%, were helping to limit the tech-heavy Nasdaq's losses after it reported better-than-expected quarterly results.

The retrenchment for stocks comes after one of the sharpest downturns of 2017, when the S&P 500 index slumped 1.5% for its biggest one-day percentage drop in three months. The Dow average and Nasdaq Composite Index ended down 1.2% and 1.9%, respectively.

The benchmarks are now on track for weekly losses around 0.5%. The Dow is on pace for its largest two-week percentage decline since mid-September last year, while the Nasdaq is flirting with its longest weekly losing streak since May 2016, as it has fallen for four weeks in a row.

"In a week where we started by worrying about nuclear war, markets have quickly moved on from this, with yesterday's weak session more of a response to fears that Mr. Trump's strategy for the economy and business is falling apart," strategists at Deutsche Bank said in a note.

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Market participants are still focused on the terror attack in Spain, which happened on Thursday , with a van plowing into crowds in one of Barcelona's busiest venues, killing at least 14 people and injuring scores. Islamic State has claimed responsibility ( for the terror attack. Hours after the Barcelona incident, police killed five alleged terrorists following a separate attack that hurt seven people in Cambrils, a Spanish town southwest of Barcelona.

European stocks were sharply lower on Friday following the attacks. Spain's IBEX 35 index was among the hardest hit, down 1% at 10,342.20.

Also spooking investors were reports on Thursday that Gary Cohn was planning to resign as an economic adviser to the president. The White House has countered those rumors.

See:Team Trump losing Gary Cohn could crash the stock market, warns Yale professor (

Cohn is "seen as the glue holding Trump's pro-business agenda together," Deutsche Bank's strategists said. "The fears are that if he goes, you take a further step back from tax cuts and deregulation."

The dollar was trading lower on Friday. The ICE Dollar Index was down 0.2% at 93.480.

Stock movers: Shares in Ross Stores Inc.(ROST) rallied 11% after the off-price retailer late Thursday reported earnings and sales above forecasts (

Calpine Corp.(CPN) soared 11% in premarket trade after a Wall Street Journal report late Thursday said Energy Capital Partners is closing in on a $17 billion deal ( to acquire the power company.

U.S.-listed shares of Infosys Ltd.(500209.BY) slid 8.9% after Vishal Sikka on Friday resigned as chief executive (

Foot Locker Inc. (FL) plunged 25% after the sports-apparel company significantly missed profit forecasts (

Deere & Co.(DE) opened at a three-month low, with shares down 7% after quarterly sales at the farming-equipment company missed expectations (

On an upbeat note in Friday's earnings, Estée Lauder Cos.(EL) climbed 4.7%. Both earnings and profit at the beauty company beat estimates (

Economic news: A consumer sentiment reading for August is due at 10 a.m. Eastern Time.

On the Federal Reserve front, Dallas Fed President Robert Kaplan is due to speak at a community college event in Dallas at 10:15 a.m. Eastern.

Other markets:Asia markets closed broadly lower (, with Japan's Nikkei 225 index finishing at a three-month low.

Oil prices traded slightly higher on Friday, rising 0.2% to $47.19 a barrel. Metals were higher across the board, with gold added 0.7% above $1,300 an ounce on increased haven demand.

(END) Dow Jones Newswires

August 18, 2017 09:46 ET (13:46 GMT)