© Reuters. WALL STREET ENDS LOWER
by Stephen Culp and Medha Singh
NEW YORK (Reuters) – The New York stock Exchange has finished down overall on Friday, weighed down by technology stocks and the financial but supported by the industrials, which have limited the losses, with encouraging signs in the trade negotiations between the United States and China.
The chinese foreign ministry, denied on Friday rumors that Beijing has proposed reducing $ 200 billion in the trade deficit of the United States, thus avoiding a trade war among economic powers, a perspective that has roiled the markets for several months.
The discussions are continuing, however, added a spokesman of the chinese ministry noting that they had been for the time being “constructive”.
Shortly before closing, the economic adviser of the white House, Larry Kudlow, said that Beijing was gaining “to much of the demands” of the United States on the reduction of the bilateral trade deficit, but that the two countries had not yet reached an agreement.
Kudlow also noted that the Chinese had proposed to reduce the trade deficit of Usa with China of over $ 200 billion, in sectors including energy and agriculture.
“There is still a concern around trade talks with China, but… the market is cautiously optimistic about the possibility that the negotiations lead to a good result”, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
The Dow Jones wins 1,11 point and ends almost stable at 24.715,09.
The S&P-500, wider, lost as 7.16 points, or 0.26 per cent, to 2.712,97.
The Nasdaq Composite fell on his side 28.13 points (0.38 per cent) to 7.354,34.
The Russell 2000 has once again done better than these three major benchmark indices posting a third consecutive record closing as a sign of the current appeal of small-cap stocks for investors.
About 6,18 billion shares were traded during the session on the different markets in the u.s., compared with an average of 6,64 billion over the 20 previous sessions.
On the week, the three major indices have fallen, the Dow transferor with 0.54%, the S&P-500’s 0.46% and the Nasdaq 0,66%.
THE DOLLAR RISES AGAIN, THE OIL BRAND THE NOT
Industrials were supported by the hopes of a favorable outcome in the trade negotiations between china and the us, their sectoral index winner of 0.55%, led by Boeing (NYSE:BA), which takes nearly 2.1%.
The giant of agricultural machinery Deere & Co jumped 5.75% after the announcement of an upward revision of its forecast of annual results in favor of a sustained demand.
The technological Alphabet ends down about 1.1%, while CBS (NYSE:CBS) News broadcast on Sunday a report on the anticompetitive practices of the mother house of Google (NASDAQ:GOOGLE).
Applied Materials abandoning an 8.25% after the announcement of quarterly forecasts disappointing the manufacturer of the chips, which raises new concerns about the slowing demand for smartphones.
The index of semi-conductors declined 1.44% and that of the technological values of 0.45%.
NXP ends, however, an increase of 4.04% in the following statements by a chinese official quoted by the Wall Street Journal, according to which the outlook is “more positive now” for the proposed takeover of the Dutch manufacturer of semi-conductors by Qualcomm (NASDAQ:QCOM) (+0,98%).
Baidu abandons 9,53% after the announcement of the resignation of its director general, Lu Qi.
The largest department store chain Nordstrom plunges to 10,90%, and Campbell Soup to 12.36% after their quarterly results and a decline in the annual forecast and the departure of its chair in relation to the producer of soups.
The financial have been negatively affected by the declining yields in the long term. Their index ends down 0.91%.
The yield on Treasuries to 10 years is significantly relaxed to 3.06%, passing under the threshold of 3.10%, crossed on Wednesday.
Investors are returning to bond markets after the sell-off in the beginning of the week caused by fears over inflation and the funding requirements of the u.s. Treasury.
The index’s energy sector ended down 0.74 per cent with the decline in oil prices because of profit-taking.
At the time of closing, the contract of June on the light crude to u.s. West Texas Intermediate, WTI) yields 15 cents, or 0.21 per cent, to 71,34 dollars a barrel but to sign a third consecutive week of increase.
Brent crude yield 69 cents (0,87%) 78,61 usd, which does not prevent him from recording a sixth consecutive week of increase after having crossed the threshold of $ 80 a barrel Thursday for the first time since November 2014.
On the foreign exchange market, the dollar was ahead 0.24 per cent against a basket of reference currencies, including the euro, which yields 0.25%, and drops under the bar of 1.18 dollar..
The operators have not welcomed the publication of the government agreement between the League and the Movement 5 Stars (M5S) in Italy, which does certainly not an exit from the euro or a partial erasure of the public debt as had been leaked in recent days but which poses the stage for a confrontation with the european partners of Rome.
(Marc Joanny for French service)