The Week In Review
The major averages finished down for a third straight day, the S&P 500 had its worst week of 2019, following a Fed rate cut on Wednesday, news of an additional 10% tariff on Chinese imports and key economic data out this morning. The Dow Jones Industrial Average closed down 98 points at 26,485 after plunging 334 points earlier in the day. The S&P 500 lost 0.7% to end the day at 2,932. The Nasdaq Composite slid 1.3% to close at 8,004. The major indexes dipped below their 50-day moving averages, key technical levels watched by investors. For the week, the S&P 500 dropped 3.1% while Nasdaq declined 3.9%. The Dow had its second-worst week of the year, sliding 2.6%. The Russell 2000 was the only major U.S. index that closed below the key technical level.
In a series of tweets on Thursday, President Donald Trump said the 10% charge would be imposed on $300 billion worth of Chinese goods. The levy will take effect starting September 1. Trump said later on Thursday he was open to shelving that tariff if China stepped up its U.S. agricultural purchases.
China's foreign ministry pushed back against Trump's latest tariff threat on Friday morning, reportedly saying the world's largest economy should give up its illusions, shoulder some responsibility and come back to the right track on resolving the trade war.
On earnings front, Dow components Chevron and Exxon Mobil provided mixed results. Square and NetApp issued disappointing guidance. Survey Monkey, Newell Brands and Pinterest provided upbeats results and guidance.
The S&P 500 information technology sector fell 1.7% while energy sector declined 1.3% one day after the biggest decline in crude prices in four years. Defensive-oriented real estate rose 0.8%, consumer staples rose 0.1% and utilities inched up 0.1%, the lone sectors to finish higher.
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