U.S. stocks finished lower as trade uneasiness was exacerbated by expectations President Donald Trump will go ahead with further tariffs on China after the closing bell. Tech issues remained hamstrung by the trade uneasiness and Amazon pressured the consumer discretionary sector. Treasury yields were little changed though the U.S. dollar fell, while a read on regional manufacturing noticeably missed estimates. Crude oil prices turned lower and gold advanced.
The Dow Jones Industrial Average (DJIA) fell 93 points (0.4%) to 26,062, the S&P 500 Index was 16 points (0.6%) lower at 2,889, and the Nasdaq Composite dropped 114 points (1.4%) to 7,896. In moderate volume, 732 million shares were traded on the NYSE and 2.3 billion shares changed hands on the Nasdaq. WTI crude oil dipped $0.08 to $68.91 per barrel and wholesale gasoline was little changed at $1.97 per gallon. Elsewhere, the Bloomberg gold spot price moved $5.73 higher to $1,200.59 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was down 0.4% to 94.49.
The Empire Manufacturing Index showed output from the New York region fell more than expected but remained solidly in expansion territory (a reading above zero) for September. The index dropped to 19.0 from August’s unrevised 25.6 level, with the Bloomberg forecast calling for a decline to 23.0.
Treasuries were little changed, with the yields on the 2-year and 10-year notes, along with the 30-year bond, flat at 2.78%, 2.99% and 3.13%, respectively. The U.S. dollar saw some pressure.
The markets continued to grapple with a highly-expected Fed rate hike next week as economic data has been mostly solid, headlined by the August nonfarm payroll report that showed wage growth was stronger than expected, but recent reads on inflation came in cooler than forecasted to keep a December rate hike in question. Trade concerns continued to fester as talks with China seemed threatened by news that President Donald Trump is likely to go ahead with further tariffs on Chinese goods after today’s market close.
©2018 Charles Schwab & Co., Inc., Member SIPC. All rights reserved.
Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.