Stocks jump for month as oil posts record gain

Trump gets tougher on China, but sticks to trade deal

U.S. equity markets curbed the bulk of their losses Friday after President Trump announced a new wave of crackdown efforts on China, but stopped short of instituting new sanctions or upending the trade deal between the two countries.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34382.13 +360.68 +1.06%
SP500 S&P 500 4173.85 +61.35 +1.49%
I:COMP NASDAQ COMPOSITE INDEX 13429.978403 +304.99 +2.32%

The Nasdaq led the way, rising 1.29 percent, while the S&P 500 added 0.48 percent. The Dow Jones Industrial Average slipped fractionally, closing down more than 17 points.

All three of the major averages posted weekly and monthly gains.

TRUMP ANNOUNCES NEW ACTIONS AGAINST CHINA OVER HONG KONG, CORONAVIRUS

Trump's new initiatives include limiting some foreign nationals entering the U.S., a working financial markets group to examine Chinese companies listed on U.S. exchanges and the termination of America's relationship with the World Health Organization.

Ticker Security Last Change Change %
ICE INTERCONTINENTAL EXCHANGE, INC. 113.21 +1.10 +0.98%
NDAQ NASDAQ OMX GROUP INC 164.36 +3.46 +2.15%

Meanwhile, at least nine states and Washington D.C. eased lockdown restrictions on Friday, with Illinois allowing outdoor seating at bars and restaurants and Michigan letting nonessential medical procedures resume. Washington will now permit outdoor seating at restaurants and the reopening of barber shops as well as curbside pickup and delivery for non-essential retail.

Looking at stocks, China-based companies were in focus and social-media companies remained under a watchful eye after the president on Thursday issued an executive order that targets a liability shield, given to tech companies by Congress, if they “engage in censoring or any political conduct.”

Ticker Security Last Change Change %
BABA ALIBABA GROUP HOLDING LTD 209.56 +3.48 +1.69%
BIDU.TWTR n.a. n.a. n.a. n.a.
FB FACEBOOK, INC. 315.94 +10.68 +3.50%

Trump lashed out against Twitter on Friday, saying the company is “doing nothing about all of the lies & propaganda being put out by China or the Radical Left Democrat Party” while targeting conservatives.

Tesla CEO Elon Musk has the option to buy more than 1.6 million shares at $350.02 each -- less than half their current price -- after the stock’s performance exceeded targets set by the board of directors. Exercising that right would net Musk nearly $800 million.

In the tech industry, Dow component Cisco Systems acquired the cybersecurity software firm Thousand Eyes for about $1 billion, according to Bloomberg.

Ticker Security Last Change Change %
TSLA TESLA, INC. 589.74 +18.05 +3.16%
CSCO CISCO SYSTEMS, INC. 52.90 +0.41 +0.78%

On the earnings front, Costco reported mixed fiscal third-quarter results and said global comparable sales fell in April as a result of stay-at-home orders, social distancing and the temporary closure of some locations.

Nordstrom said first-quarter sales slumped 40 percent from a year ago as COVID-19 led to the temporary closure of its stores. The company expects all of its stores to be reopened by the end of June.

Ticker Security Last Change Change %
COST COSTCO WHOLESALE CORP. 384.42 +4.89 +1.29%
JWN NORDSTROM 40.95 +4.11 +11.16%

Commodities posted monthly gains with oil rising over 88 percent to $35.49 per barrel, the biggest monthly gain on record, while gold rose to $1,736.90 an ounce.

U.S. Treasurys rallied, driving down the yield on the 10-year note to 0.65 percent.

European markets were lower across the board, with Britain’s FTSE down 2.29 percent, Germany’s DAX tumbling 1.65 percent and France’s CAC falling 1.59 percent.

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In Asia, Hong Kong’s Hang Seng slid 0.74 percent and Japan’s Nikkei lost 0.18 percent while China’s Shanghai Composite added 0.22 percent.