The S&P 500 index closed almost unchanged on Friday, as investors weighed mixed data on consumer confidence and retail sales ahead of the upcoming trade meeting among Chinese officials. National and American.
While headline US retail sales ignored forecasts, with a monthly gain of 1.2%, down from the 2% estimate, the base numbers bolstered expectations. . Consumer confidence was better than expected in August; The University of Michigan’s Consumer Sentiment Index stood at 72.8 on Friday, compared with forecasts of 72.0.
That helped US equities outperform markets in Europe, even as the delay in additional US stimulus measures weighed on sentiment.
The Dow Jones Industrial Average rose 34.30 points, or 0.1%, to 27,931.02. The S&P 500 fell 0.58 points, 0.1% less, to 3,372.85, still within close range of the index’s all-time high. Nasdaq Composite fell 23 points, or 0.2%, to 11,019.30.
Weakness in tech stocks could be due to concerns about the upcoming meeting between US and Chinese officials to discuss trade, as U.S. tech giants’ revenues and supply chains have significantly affects China. However, technology stocks are also trading at a high valuation after falling in recent weeks. So far, the Nasdaq is up 23% from the 4.4% gain for the S&P 500.
China’s retail sales unexpectedly fell in July, and the tourism sector was dealt a new blow when Britain added France to the quarantine list. Europe’s Stoxx 600 index fell 1.2%, while France’s CAC was down 1.6% and Germany’s DAX was 0.7% lower. The UK FTSE 100 is down 1.5%.
China’s retail sales unexpectedly fell 1.1% in July, improving from June’s 1.8% drop but marking the seventh consecutive monthly decline. Economists estimate revenue will increase 0.1% but the sudden drop has raised concerns about China’s economic recovery. While the country’s industrial production continued to grow, it missed FactSet consensus estimates.
“China was the first country to enter the coronavirus crisis and is believed to be one of the first to step out of its first phase, so the fragile nature of the recovery offers an uncomfortable look. futures for other countries, ”said AJ Bell investment director, Russ Mold.
The UK decided to add France and the Netherlands to its quarantine list amid rising cases of coronaviruses that have affected Europe’s tourism and entertainment supplies. From Saturday, visitors to the UK from those countries will have to quarantine themselves for 14 days. The latest blow to the travel sector left airlines badly at the beginning of Friday, with easyJet,
IAG is the owner of British Airways,
and Ryanair both fell over.
Not only airlines feel the influence of the decision likely to lead to flights canceled and delayed vacations, as hotel chains Whitbread and Intercontinental Hotels, and aircraft engine maker Rolls Royce also among the strongest discount firms.
In the US, DraftKings (DKNG) shares fell 5.9% after management reported larger-than-expected losses in the second quarter even as sales exceeded expectations. The online sports betting industry has been affected by the absence of live sports in recent months, but activity has rebounded in July as bettors bet on sports. Other sports such as pro golf and top fights.
Tesla (TSLA) shares rose 1.8 percent following the upgrade from Morgan Stanley.
Earlier this week, Tesla announced its 5-to-1 stock split plan, which will go into effect August 31.
AMC Entertainment shares rose 4.3%. The company said late on Thursday that it plans to begin phased reopening of its theaters on August 20, with social segregation measures in place. The chain plans to have about two-thirds of the approximately 600 theaters in the US open on September 3.
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