Trump's China comments lifts Dow as chips hurt tech
U.S. stocks regained some momentum to end the week on a mixed note. The Dow Jones Industrial Average jumped 123.95 points, the S&P 500 notched up 6.07 points, while the Nasdaq Composite fell fractionally.
Investor spirts were lifted on hopes a trade deal with China is closer to being signed. Speaking at The White House, President Trump reiterated that the U.S. may not have to put more tariffs on China adding that China "wants to make a trade deal."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44782 | -128.65 | -0.29% |
| SP500 | S&P 500 | 6047.15 | +14.77 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19403.947849 | +185.78 | +0.97% |
While these comments boosted the broader market, the Nasdaq fell, dragged down by semiconductor stocks. Nvidia, the world's biggest maker of microchips for computer graphic cards, tumbled as investors digested a downbeat sales forecast and a weak fiscal fourth-quarter earnings report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NVDA | NVIDIA CORP. | 138.16 | +2.82 | +2.08% |
Meanwhile, PG&E shares rebounded Friday by 37 percent after falling 27 percent Thursday on worries the electricity company may not be able to cover the billions in losses from California's worst wildfires in history. The rebound came following reports that California Public Utilities Commission head Michael Picker had eased fears about a bankruptcy. He is promising to seek input on the future of the utility company's structure.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PCG | PG&E CORP. | 20.49 | -1.16 | -5.34% |
In Europe, markets bounced back from the Brexit bruising they’ve taken this week. London’s FTSE traded up 0.2 percent, Germany’s DAX gained 0.5 percent and France’s CAC added 0.3 percent.
In Asia, Japan's Nikkei fell as a drop in semiconductor-related stocks weighed after U.S. chip designer Nvidia disappointed the market with worse-than-expected earnings, while Nintendo also fell sharply. The Nikkei average ended the day 0.6 percent lower and was down 2.6 percent for the week.
China’s Shanghai Composite finished the session 0.4 percent higher, gaining 3.1 percent for the week. Hong Kong’s Hang Seng index finished the day up 0.3 percent and up 2.3 percent for the week.
On Thursday, stocks closed near session highs amid another volatile session. The Dow Jones Industrials climbed back from losses to gain 208.77 points or 0.8 percent, the Nasdaq Composite and the S&P 500 captured gains of over 1 percent each.
The catalyst for the turnaround in stocks was linked to optimism that the U.S. is expected to suspend the next round of tariffs against China. These developments helped offset fears over unrest in Britain as Prime Minister Theresa May deals with cabinet defections and a possible no-confidence vote.
Commodities were mostly higher, led by oil, which was up after plunging to a year low earlier this week.