The S&P 500 closed almost unchanged on Friday, as investors weighed mixed data on consumer confidence and retail sales against an upcoming trade meeting between Chinese and US officials.
While U.S. retail sales figures exceeded forecasts, with a monthly increase of 1.2% falling to 2% estimates, underlying numbers boosted more than expected. Consumer confidence is better than expected for August; the University of Michigan Consumer Sentiment Index came in at 72.8 on Friday, compared to forecasts of 72.0.
That helped US stocks outperform European markets, despite delays in further US stimulus weighing on sentiment.
The Dow Jones Industrial Average gained 34.30 points, or 0.1%, to 27,931.02. The S&P 500 slipped 0.58 a point, down 0.1%, to 3,372.85, remaining within close range of the entire index. The Nasdaq Composite declined 23 points, or 0.2%, to 11,019.30.
The weakness of Tech shares could be attributed to concerns about an upcoming meeting between US and Chinese officials to discuss trade, as the revenues of tech giants and supply chains are heavily exposed to China. . But tech stocks are also trading with high esteem after tearing up in recent weeks. Year to date, the Nasdaq is at 23% compared to the S&P 500’s 4.4% advance.
Chinese sales unexpectedly fell in July, and the travel sector faced a fresh blow as the UK added France to the quarantine list. The pan-European Stoxx 600 index fell 1.2%, while the French CAC slipped to 1.6% and the German DAX was 0.7% lower. The UK FTSE 100 slipped 1.5%.
Chinese sales unexpectedly fell 1.1% in July, improving to a 1.8% decline in June but marking a seventh consecutive monthly decline. Economists estimate sales will lead to 0.1% higher but astonishment has raised fears of China’s economic recovery. As the manufacturing industry continues to grow, the agreed FactSet estimates have not been obtained.
“China is first in the coronavirus crisis and may be one of the first to emerge from its first stage, so the fragile nature of its recovery offers an uncomfortable outlook for the future for other countries,” he said. said AJ Bell Government investment director Russ Mold.
The UK’s decision to add France and the Netherlands to the quarantine list amid rising coronavirus cases has hit travel and leisure stocks in Europe. From Saturday, travelers arriving in the UK from those countries are required to isolate themselves within 14 days. The latest blow to the travel sector saw planes experiencing heavy losses early Friday, with easyJet,
Owner of British Airways IAG,
and Ryanair all fell.
It was not just planes that felt the effects of a decision that would likely lead to the cancellation of flights and delayed holidays, because the Whitbread hotel chains and Intercontinental Hotel, and the aircraft engine manufacturer Rolls Royce is also among the sharp declarations.
In the US, DraftKings (DKNG) shares fell 5.9% after management reported a wider-than-expected loss for the second quarter even though sales were ahead of estimates. The online sports betting industry has been plagued by a lack of live sports in recent months, but activity boomed in July as bettors bet on other sports such as professional golf and ultimate wrestling.
Tesla shares (TSLA) hit 1.8% on the heels of an upgrade from Morgan Stanley.
Earlier this week Tesla announced plans for a 5-for-1 stock split, which will take effect on August 31.
AMC Entertainment’s shares rose 4.3%. The company said Thursday it plans to begin a phased reopening of its theaters on Aug. 20, with social relocation measures in place. The theater chain plans to have nearly two-thirds of approximately 600 US theaters open in Sept. 3.
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