Stocks up as trade optimism offsets weak manufacturing data
U.S. stocks rose Friday, ending the week higher as optimism about prospects for a US-China trade deal helped markets start March in the green. But a weak manufacturing report weighed on equities.
Trade negotiators were reportedly preparing a final deal between the world's two largest economies, which could be signed in the coming weeks, according to Bloomberg.
Treasury Secretary Steve Mnuchin said Thursday that a 150-page document is being readied, but cautioned there's "more work to do."
The major averages finished February higher, with the blue-chip Dow Jones Industrial Average, broader S&P 500 and tech-focused Nasdaq Composite up three of the last four months. The Nasdaq has now been up for the last 10 weeks, its longest winning streak since 1999.
Stocks on Friday took a brief dive after a model used by the Atlanta Fed estimated first-quarter real gross domestic product at just 0.3 percent, but later stocks rebounded.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38460.92 | -42.77 | -0.11% |
| SP500 | S&P 500 | 5071.63 | +1.08 | +0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15712.748618 | +16.11 | +0.10% |
Tesla unveiled a long-awaited $35,000 base model for its flagship Model 3 sedan on Thursday and said it will gradually shut down showrooms while shifting all worldwide sales online.
Gap shares surged after the company said it would separate its better-performing Old Navy brand and shutter about 230 stores of its struggling namesake apparel business.
Foot Locker jumped after the footwear retailer reported quarterly same-store sales above analysts' expectations and plans to close around 165 stores.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 162.13 | +17.45 | +12.06% |
| GPS | GAP INC. | 20.10 | -0.81 | -3.85% |
| FL | FOOT LOCKER INC. | 22.86 | +0.62 | +2.79% |
Amazon, which owns the upscale Whole Foods Market grocery stores, plans to launch a distinct grocery-store chain that will offer less-expensive items, according to a report.
The Wall Street Journal, citing people familiar with the matter, said Amazon is planning to open dozens of grocery stores in several major U.S. cities over the next few years.
The news boosted Amazon shares and hit those of its rivals.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 176.59 | -2.95 | -1.64% |
| KR | THE KROGER CO. | 56.16 | +0.54 | +0.96% |
| WMT | WALMART INC. | 59.86 | +0.78 | +1.32% |
| SFM | SPROUTS FARMERS MARKET INC. | 65.59 | +0.10 | +0.15% |
Crude oil prices posted their largest one-week net and percentage decline since the week ended Dec. 21, 2018, snapping a two-week winning streak.
A final reading of the IHS Markit U.S. Manufacturing Purchasing Managers' Index declined to a seasonally adjusted 53 in February, its lowest since August 2017 and down from 54.9 in January.
Personal spending decreased a seasonally adjusted 0.5 percent in December from the prior month, while personal incomes slipped 0.1 percent in January. The Commerce Department didn't publish the January spending numbers due to a delay caused by the partial government shutdown.
Both consumer sentiment and manufacturing slipped in February.
The University of Michigan on Friday said its consumer sentiment index declined to 93.8 in late February from 95.5 earlier in the month. Sentiment had recently fallen in the wake of market volatility and the partial government shutdown.
In Asian markets on Friday, China’s Shanghai closed up 1.8 percent, but rose 6.8 percent for the biggest weekly gain in four years. Hong Kong’s Hang Seng added 0.5 percent for the day and Japan’s Nikkei added 1 percent for the session and 0.8 percent for a third weekly gain.
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In Europe, the markets ended the day higher. London’s FTSE was higher by 0.5 percent, but fell 1 percent for the week. Germany’s DAX jumped 0.8 percent and 1.3 percent for the week. France’s CAC added 0.5 percent and almost 1 percent for the week.
FOX Business' Ken Martin contributed to this report.