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US stocks caught up with their initial losses to close higher on Friday after key negotiators cast positive light on trade negotiations. But the S & P 500 and Nasdaq had their worst week in 2019 as tensions between the US and China remain strong following the Trump government's decision to raise $ 200 billion in import duties Chinese goods.
How did the benchmarks perform?
The Dow Jones Industrial Average
DJIA, + 0.44%
up 114.01 points, or 0.4%, to 25 942.37 after a deficit of more than 350 points. The S & P 500 index
SPX, + 0.37%
earned 10.68 points, or 0.4%, at 2,881.40, while the Nasdaq composite index
COMP + 0.08%
climbed 6.35 points, or 0.1%, to 7,916.94.
For the week, the Dow fell 2.1%, its biggest weekly loss since March. The S & P fell 2.2% and the Nasdaq lost 3%, the largest loss since the week ending December 21st.
What motivated the market?
Trade tensions were at the center of concern as the United States raised tariffs at 12:01 pm Eastern Friday, with Beijing promising to retaliate.
But the stock market rebounded after US Treasury Secretary Steven Mnuchin said the bilateral talks were "constructive," though no deal was found. The optimistic tone was reinforced by President Donald Trump in a tweet soon after.
Trump had expressed frustration over the pace of talks with China in recent days as the president accused Chinese officials of backtracking on commitments made in previous talks.
See: Here is how much the customs fight between the United States and China will hit the economy
The President also threatened on Friday morning on Twitter that his government was taking steps to impose new tariffs of 25% on the remaining $ 325 billion worth of goods imported annually from China. In a series of tweets, the president continued to defend the tariffs, writing that they are going "Make our country much stronger, not weaker. Sit down and look.
Lily : Here are the shares to buy if a total trade war between the United States and China breaks out, says Goldman
Which economic data and which speaker were concerned?
Consumer prices rose 0.3% in April, which is below the 0.4% expected by economists, according to a MarketWatch survey. Core inflation, which excludes volatile prices for food and energy, rose 0.1% in April, below the consensus estimate of 0.2%.
Atlanta Fed Chairman Raphael Bostic said at a meeting with corporate executives in Meridian, Mississippi, that the central bank might need to cut its rates. Interest if the new round of tariffs applied to Chinese products lowered consumer spending.
Fed Chairman in New York, John Williams, said the recent basic readings of inflation "Are a little too weak", but until now, "seems to reflect mainly a normal volatility" in the statistics. In a speech, he said the current monetary policy "was in the right place", but that Fed officials will closely monitor inflation statistics to ensure that they reach the point. target of 2% set by the central bank.
What did the strategists say?
"Despite the increase in tariffs, the prospects for a trade agreement in the relatively near future remain cautiously optimistic," Sevens Report chairman Tom Essaye wrote in a note to clients, noting that negotiations were continuing, as well as Trump's administration included a "grace period" in the latest tariff increases.
"Goods currently in transit from China to the United States are not subject to the new tariffs of 25%, but only to the old tariffs of 10%. This grace period was not included in the previous tariff series and is probably a kind of olive tree on the Chinese side, "he added. "Given shipping times, goods shipped from China today will take about two weeks to reach the United States. Therefore, if a trade agreement is blocked during this period, the 25% duty penalty will never be felt. "
"The best hypothesis is that the two parties speak Friday and then stop to rethink their way of proceeding. If this is the case, we are living in a period of great uncertainty. But we have to wait for the outcome of Friday's talks to make a more accurate assessment, "Danske Bank analysts said in a note to customers.
See: Why Fighting Pushed Large Asset Manager to Modify Portfolios in the United States
What stocks were under discussion?
Uber Technologies Inc.
UBER, -7.62%
Shares fell 7.6% to $ 41.57 after the company's debut on the New York Stock Exchange. The publicly traded company set its IPO on Thursday afternoon at $ 45 a share, which should bring at least $ 8 billion to the company.
Actions of Symantec Corp.
SYMC, -12.54%
The group lost 13% after its firm announced disappointing results and disappointing forecasts on Thursday night, and said CEO Greg Clark had stepped down.
Actions of Viacom Inc.
VIAB, + 2.63%
rose 2.6% after the entertainment content company reported second-quarter results exceeding expectations, but a larger revenue decline than predicted by Wall Street.
How were the other markets traded?
Chinese benchmark indexes soared, with the Shanghai Composite Index
SHCOMP, + 3.10%
earns 3.1% and the Shenzhen Composite Index
399,106, + 3.83%
up 3.8%. However, Japan Nikkei 225 Index
NIK -0.27%
finished 0.3%.
The European Stoxx Europe 600 Index
SXXP, + 0.32%
increased by 0.3%.
Gold
GCM9, + 0.12%
it's stabilized upward while the US dollar has gone down slightly
DXY, -0.10%
CLM9, + 0.02%
posted a mixed finish.
-Barbara Kollmeyer contributed to this article
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