US stocks slump as Trump-Kim summit ends without deal

Stocks slumped modestly Thursday after an abrupt and apparently unsuccessful summit between President Trump and North Korean leader Kim Jong Un.

The negative effect on equity markets of the surprising end to the meeting in Hanoi, Vietnam, was partially offset by a U.S. government report that the economy grew by a rate of  2.6 percent this winter, beating analysts' estimates of 2.3 percent, thanks to solid consumer and business spending.

Earlier, both Trump and Kim had expressed hope for progress on improving relations and on the key issue of denuclearization, in their talks.

"Basically, they wanted the sanctions lifted in their entirety, but we couldn't do that ... we had to walk away from it," Trump told reporters after summit talks were cut short.

In 2018, the U.S. gross domestic product increased by an estimated 2.9 percent, compared to 2.2 percent in 2017, narrowly missing the Trump administration's goal of 3 percent growth for the year. However, the fourth-quarter growth was weaker than the second-quarter growth and the third-quarter growth.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35726.06 +49.04 +0.14%
SP500 S&P 500 4565.86 +20.96 +0.46%
I:COMP NASDAQ COMPOSITE INDEX 15228.189775 +137.99 +0.91%

J.C. Penney reported earnings and sales that topped analysts' expectations and was successful in reducing a glut of unsold inventory in 2018. It also said it plans to shutter 18 department stores this year, including three it already announced last month. Shares rocketed higher on the news.

Shares of HP dropped sharply after the company reported quarterly revenue that fell short of Wall Street estimates on weaker-than-expected sales in both its personal computer and printing businesses. HP is the hardware business of the former Hewlett-Packard, which split in 2015.

Wearable device maker Fitbit forecast current-quarter revenue below analysts' estimates on Wednesday, as the company expects its average selling price to drop, sending its shares falling.

Ticker Security Last Change Change %
JCP n.a. n.a. n.a. n.a.
HPQ HP, INC. 30.61 +0.14 +0.48%
FIT n.a. n.a. n.a. n.a.
LB n.a. n.a. n.a. n.a.

Shares of L Brands fell after forecasting 2019 earnings below estimates and reported lower quarterly sales for its Victoria's Secret business.

In Asian markets, China's Shanghai fell 0.4 percent, Hong Kong's Hang Seng was down 0.4 percent and Japan's Nikkei was off 0.8 percent.

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In European markets, London's FTSE traded lower by 0.1 percent, Germany's DAX gained 0.2 percent and France's CAC was up 0.3 percent.

FOX Business' Ken Martin contributed to this report.