The Dow fell on Friday as a decline in oil and concern over a scuttled summit with North Korea made investors wary on the eve of the three-day Memorial Day weekend.
The Dow Jones Industrial Average lost 58.67 points, or 0.24%, to 24,753.09. The S&P 500 dropped 6.43 points, or 0.23%, to 2,721.33. The Nasdaq Composite was up 9.42 points, or 0.13%, at 7,433.85.
Exxon Mobil and Chevron tumbled while airline stocks including American Airlines, United Airlines, Southwest Airlines and Delta Air Lines traded higher with oil prices on the decline.
|I:DJI||DOW JONES AVERAGES||35677.02||+73.94||+0.21%|
|I:COMP||NASDAQ COMPOSITE INDEX||15090.200353||-125.50||-0.82%|
West Texas Intermediate crude posted its biggest decline in about 11 months on reports that OPEC and Russia are considering raising their output by a combined 1 million barrels a day. U.S. oil futures were down 4% on the day.
Oil prices had recently soared with supply worries stemming from disruptions in Venezuela and a potential output cut resulting from sanctions on Iran.
|XOM||EXXON MOBIL CORP.||63.12||+0.43||+0.69%|
|UAL||UNITED AIRLINES HOLDINGS, INC.||46.73||+0.01||+0.02%|
The Commerce Department reported Friday that orders for non-military durable goods rose 1% in April. Durable goods are products that are expected to last three or more years. The University of Michigan's final consumer sentiment index for May came in at 98.
Stocks also fell Thursday after President Donald Trump called off the June 12 summit with North Korea, adding to geopolitical concern. The North Korean government responded by saying it was open to resolving issues with the U.S.
“Amidst the broader market weakness, you are likely to see defense stocks outperform other cyclical subsectors, even while defensive sectors like utilities and telecommunications rally along with treasuries in a bid for safety,” Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, said this week.
Trump said the meeting was off because of the “tremendous anger and open hostility” displayed in a recent statement from leader Kim Jong Un. On Friday, Defense Secretary Jim Mattis said the meeting could be back on track as the two sides continue to talk.
Despite geopolitical tensions, the major averages closed the week in positive territory.
The Dow edged 0.15% higher on the week, while the S&P 500 rose 0.31%. The Nasdaq posted the largest gain at 1.08%.