Follow us on facebook


Stock Indexes Sluggish, AmEx Down As G-7 Members Brace For Trump

U.S. stock indexes retreated cautiously late Friday morning, as the G-7 summit opened in Canada. The Dow Jones industrial average’s components were mostly down with Apple (AAPL) and American Expess (AXP) at one point both taking hits of 2% to 2.5%.

X

The Nasdaq shaved off 0.2%, while the S&P 500 lost 0.1%. The Dow Jones industrial average was just under flat. The small cap Russell 2000 inched up less than 0.1%.

Volume was running lower on both major exchanges vs. the same time Thursday.

Apple gapped down 1.6% in above-average volume. The stock has a 7.2% weighting in the Nasdaq, the biggest in the index.

Apple warned suppliers to make 20% fewer components for the iPhone, the Nikkei Asian Review reported. The stock is only 1% off its high.

American Express fell 2.5% in early trade but then trimmed the loss to 0.8%. The stock has been testing the 50-day moving average recently but has had no trouble staying above the line.

Meanwhile, trade friction between the U.S. and the six other G-7 nations garnered attention. President Trump recently pinned tariffs on steel and aluminum imports from the European Union, Canada and Japan. The tariffs also targeted Mexico and China, but they are not G-7 members.

Despite the attention trade is receiving in the media, trade is not formally on the schedule for the two day G-7 summit.

An Edge For Quality

Quality stocks held a slight advantage Friday as seven IBD 50 stocks rose for every six that fell. The Innovator IBD 50 (FFTY) exchange traded fund added 0.5%.

China-based stocks in the IBD 50 showed strength despite a 1.4% drop in the Shanghai Composite. Online social network operator Momo (MOMO) climbed 6% in heavy volume. TAL Education (TAL) rose about 3% in brisk trade. Alibaba (BABA) tacked on 0.9% in vigorous volume.

In IBD’s Big Cap 20, Twitter (TWTR) led with a 3.5% gain in heavy volume.

The day’s breakouts included regional bank Cadence Bancorp (CADE) and biomed firm Acorda Therapeutics (ACOR).

The Federal Reserve will meet Tuesday and Wednesday. The Street expects the Fed to raise its rate from a 1.5%-1.75% range to 1.75%-2%. CME Group’s FedWatch Tool pegs the probability of a quarter-point rate hike at 91.3%.

RELATED:

Top-Rated Funds Are Buying Retail

IBD-TIPP Finds Economic Optimism

IBD’s Stock Of The Day

Source link

No comments.

Leave a Reply