U.S.-China Trade Talks In Focus, While Just One Stock Sector Stands Out

The Nasdaq composite led a listless stock market Friday as investors kept a watchful eye on upcoming trade talks between the U.S. and China.




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Indexes peaked at 10:40 a.m. ET and gave back some gains as the market sought direction. The Nasdaq composite was up 0.2% and the S&P 500 0.1% after both erased mild losses.

The Dow Jones industrial average lagged with a 0.1% loss. Boeing (BA), McDonald’s (MCD) and Goldman Sachs (GS) dragged on the Dow. Bank of America downgraded Goldman Sachs to neutral from buy, and cut the price target to 225 from 280.

But Pfizer (PFE) broke out past the 45.91 buy point of a flat base in volume about one-third more than normal. Pfizer said Friday it reached licensing agreements with AbbVie (ABBV) that ends a legal dispute involving intellectual property matters for Pfizer’s proposed adalimumab biosimilar. AbbVie shares rose 1.6%.

Volume was tracking lower on the NYSE and Nasdaq compared with the same time on Thursday. Trading often slows on Fridays, but the market seemed to be watching and waiting on potentially pivotal news on the trade war.

Trade Talks At G20 In Focus

At the G20 summit in Argentina, President Trump will meet with Chinese leader Xi Jinping. The two are trying to work out a trade agreement that has eluded the two nations all year. Trump threatened to ramp up tariffs on Chinese imports earlier this week. The U.S. has pending trade issues with other nations.

In a market session that lacked much leadership, transportation stood out as the best sector.

Inside the sector, airlines outperformed. Delta Air Lines (DAL) broke out past a 60.33 buy point in a cup base. The relative strength line made a new high, a good sign.

Trucking and railroad groups were up 1.5%. The Dow transports were up 1%, extending a rebound that began at the end of October.

Since the market made a bullish signal Wednesday, there haven’t been many top-rated stocks breaking out. But a few more topped buy points Friday.

Euronet Worldwide (EEFT) cleared the 120.22 buy point of a flat base and was slightly below the entry. Volume was heavy. The stock was added to IBD Leaderboard this week after it topped an early entry.

Under Armour (UA) class C shares rose above the 22.33 buy point of a cup-with-handle base in big volume.

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