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Stocks Trim Losses, Capping A Wild Week; These 3 Growth Stocks Surge

The stock market today worked off most of a midday slump but still closed with losses, after a wild week that saw the main indexes come back from steep declines.

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Stocks opened lower on weakness in European markets. Losses grew after President Donald Trump warned Friday, "we are not ready to make a deal" with China on trade. A meeting of U.S. and Chinese negotiators is set for September, but Trump said it may be canceled.

Trump also said the U.S. will no longer have any dealings with Chinese telecom Huawei. But officials later clarified that the president was only talking about a federal ban on purchases from Huawei, reports said.

Indexes slid in the final 15 minutes. The Nasdaq composite closed 1% lower after being down as much as 1.6%. The index ended below its 50-day moving average. Despite the volatility, the index made an inside day: Its price range was contained within the prior day's range.

The S&P 500 pared losses and ended nearly 0.7% lower.

The Dow Jones Industrial Average lost 0.3%. IBM (IBM) slid 2.8%. A breakout from a 145.49 buy point is failing after shares fell 7% from the buy point. Caterpillar (CAT), a trade-sensitive stock, fell 2.2% and undercut its May 31 low this week.

Volume fell from Thursday's levels, based on early figures. Declining stocks led advancers by about 2 to 1 across the board.

Friday's rebound was a microcosm of the week on Wall Street, which saw the major indexes trim steep losses. The S&P 500 fell as much as 3.8% for the week, but closed 0.5% lower. The Nasdaq erased nearly all of a 4.3% plunge.

With investors seeking havens again, utility and health care sectors showed relative strength. The Utilities Select Sector SPDR Fund (XLU) rose 0.2% and is near a new high. Health Care Select Sector SPDR Fund (XLV) climbed 0.1%.

Retail was Friday's weakest sector. Department stores, office supply, consumer electronics and apparel chains were in the bottom 20 of 197 IBD industry groups. Semiconductors also lagged on the latest trade and Huawei news.

A few breakouts offered tempting choices, but market risk remained too high for new stock purchases.

Appian (APPN) surged to a record high in heavy volume. The cloud-computing company posted a better-than-expected loss and raised its subscription revenue forecast.

Laureate Education (LAUR) broke out above a 17.30 buy point, which coincided with yearlong resistance around 17. The private college operator posted mixed results late Thursday, beating sales expectations but missing profit views. Laureate closed in buy range.

Carvana (CVNA) broke out of a cup-without-handle base in more than double its average volume. The used-car online seller topped a 76.95 buy point after the company's quarterly loss and revenue beat expectations. Shares closed in buy range.

Juan Carlos Arancibia is the Markets Editor of IBD and oversees our market coverage. Follow him at @IBD_jarancibia

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