Trade war fears were back on the front burner Friday, but major stock indexes recovered and closed off session lows. The Dow Jones fell 1.1% intraday but ended with a loss of just 0.3%. Dow components Caterpillar (CAT), Chevron (CVX), General Electric (GE) and Exxon Mobil (XOM) ended with losses of 1.5% to 2%.
XSelling in the S&P 500 and Nasdaq composite was calmer. The Nasdaq composite gave back 0.2% and the S&P 500 eased 0.1%. Preliminary data showed volume on the NYSE and Nasdaq coming in higher than Thursday's levels — more so on the NYSE. Volume was heavy due to to options expiration.
Trade War With China?
President Trump imposed tariffs on $50 billion of China goods, fueling new fears of a trade war with China. China retaliated with tariffs of its own.
In stock market results today, Canada Goose (GOOS) soared 33% on a big earnings and sales beat. Before the open, the company reported adjusted profit of 7 cents a share. Sales more than doubled from the year-ago quarter, rising 153% to $98.6 million.
Other heavy-volume gainers included steel producer Schnitzer Steel (SCHN). Shares jumped more than 8% after the company raised its earnings guidance for the current quarter. Amid a lot of trade-war talk Friday, a 25% tariff on steel imports by the U.S. is already in place. Schnitzer Steel's price performance was impressive in light of a weak day for steel stocks overall.
Meanwhile, a beat-and-raise quarter from Adobe Systems (ADBE) wasn't good enough as shares lost 2%. But the Nasdaq 100 name was well off lows in afternoon trading. Adobe was well-extended in price ahead of the results. The stock's performance Friday was a classic example of "sell the news."
In IPO news, Avalara (AVLR) had a strong debut after pricing last night at 24. Shares ended at 44.28. The company provides a cloud-based platform to help corporate customers with tax compliance. The company is not profitable yet but shows impressive sales growth. In 2017, sales totaled $213 million, up 28% from $167 million in 2016.
In related news, Leaderboard name Dropbox (DBX) followed through after Thursday's powerful breakout over a 34.93 entry. Shares jumped nearly 10% Friday to 39.60.
Inside the IBD 50, Brooks Automation (BRKS) also followed through after a breakout from a cup-with-handle base Thursday. Shares rose close to 5% Friday after Thursday's gain of nearly 4%.
Gold and oil fell hard Friday amid a strengthening U.S. dollar. August gold dropped 2.3% to settle at $1,278.50 an ounce. Benchmark crude oil for July delivery settled at $65.06 a barrel down 2.7%. OPEC and others are expected to raise output at next week's meeting in Vienna.
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