U.S. stocks fell Friday, putting major indexes on track for their longest losing streak of the year, as lingering fears over U.S-China trade relations and sluggish global growth weighed on investors’ confidence.
How are major indexes faring?
The Dow Jones Industrial Average DJIA, -0.57% fell 195 points, or 0.8%, to 24,975, while the S&P 500 index SPX, -0.25% dropped 15 points, or 0.6%, to 2,690, and the Nasdaq Composite Index COMP, -0.06% declined 41points, or 0.6%, to 7,246. All benchmarks are poised to decline for a third session in a row.
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For the week, the Dow is looking at a loss of 0.5%, threatening to snap a string of six straight weekly gains, the S&P 500 is on track for a 0.7% skid, while the Nasdaq is poised for a 0.3% decline.
What’s driving the market?
Trade-war jitters remain a core issue for investors, with Asian markets picking up the selling baton after U.S. President Donald Trump confirmed reports that he had no plans to meet with Chinese President Xi Jinping before a March 1 trade-deal deadline. CNBC, however, reported that the U.S. is likely to keep tariffs at 10% rather than raise them to 25% as scheduled.
Read: New White House message on China is that there’s a long way to go before striking trade deal
Adding to the tensions was a report that Trump will sign an executive order next week banning Chinese wireless equipment from U.S. networks ahead of the MWC Barcelona conference at the end of this month. Politico reported that the move was aimed at protecting the U.S. from cyber threats.
Read: One last stock-market ‘meltup’? How the Fed’s ‘Powell put’ could set the stage
Nagging global growth worries also pressured the market with investors concerned that China’s slowdown has hit Europe after weak data and forecasts from the region.
Read: How the European economy is raising fresh global growth fears
What are analysts saying?
“Thursday’s weakness negated much of the last week’s gains, but gains that were starting to show evidence of fatigue. The percentage of issues above their 20-day moving average has been contracting for a little over a week, as high beta has been underperforming low beta, and 2-year yields have remained uninspiring,” said Jeff deGraaf, chairman of Reinaissance Macro Research, in a note.
“The new wrinkle has been the increased optimism as seen [through] option data, the small trader’s net-long positioning in the CFTC [data] and increase in the Investor’s Intelligence Bull/Bear ratio,” he said. “Each suggests a pause for equity performance, and given the proximity to resistance and internal divergences, we’re sympathetic to that notion.”
“Up to now the markets have been optimistic about a trade deal being reached, despite little solid evidence. Trump’s stance is now rattling investor nerves just weeks before the deadline,” said Jasper Lawler, head of research at London Capital Group, in a note to clients.
“With U.S. corporate earnings starting to dry up, traders’ full focus will soon be back on trade developments. With no deal in sight this will have a negative bias on equity market flows,” he added.
What stocks are in focus?
Hasbro Inc. HAS, -4.52% shares declined 3.6% after the toy maker missed fourth-quarter profit and revenue expectations. Rival toy maker Mattel Inc. MAT, +22.41% shares were up 23% after beating Wall Street revenue and earnings forecasts.
Shares of Arconic Inc. ARNC, -3.37% fell 4.6% after the maker of aluminum products beat earnings estimates for the fourth quarter and said it would reorganize its portfolio and spin off a business.
Shares of Skechers USA Inc. SKX, +15.61% jumped 16% as analysts cheered better-than-expected earnings released late Thursday.
Expedia Group Inc. EXPE, +2.73% shares climbed 3.2% after delivering an upbeat forecast.
Shares of Coty Inc. COTY, +29.53% surged 27% after the cosmetics giant topped earnings forecasts.
How are other markets trading?
In Asia, the Nikkei 225 NIK, -2.01% dropped 2% on trade tensions, while Korea’s Kospi SEU, -1.20% fell over 1%. Markets in Hong Kong and China remain closed for the Lunar New Year holiday. Stocks in Europe were weaker with the Stoxx Europe 600 SXXP, -0.56% down 0.6%.
Crude oil CLH9, +0.04% was lower, while gold GCH9, +0.24% traded higher and the U.S. dollar DXY, +0.07% was mostly flat.
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