By Sara Sjolin, MarketWatch
Investors absorb Trump issues, attacks in Spain
U.S. stock-index benchmarks opened lower on Friday, extending
the prior session's selloff that was partially fueled by a
terrorist attack in Barcelona and rumors that an economic adviser
to President Donald Trump might resign.
The Dow Jones Industrial Average traded 13 points, or less than
0.1%, lower to 21,735, while those for the S&P 500 index
slipped 2 points, or less than 0.1%, to 2,428. The Nasdaq Composite
Index retreated 3 points, or 0.1%, at 6,218. Gains in shares of
chip-equipment supplier Applied Materials Inc.(AMAT), up 4.4%, were
helping to limit the tech-heavy Nasdaq's losses after it reported
better-than-expected quarterly results.
The retrenchment for stocks comes after one of the sharpest
downturns of 2017, when the S&P 500 index slumped 1.5% for its
biggest one-day percentage drop in three months. The Dow average
and Nasdaq Composite Index ended down 1.2% and 1.9%,
respectively.
The benchmarks are now on track for weekly losses around 0.5%.
The Dow is on pace for its largest two-week percentage decline
since mid-September last year, while the Nasdaq is flirting with
its longest weekly losing streak since May 2016, as it has fallen
for four weeks in a row.
"In a week where we started by worrying about nuclear war,
markets have quickly moved on from this, with yesterday's weak
session more of a response to fears that Mr. Trump's strategy for
the economy and business is falling apart," strategists at Deutsche
Bank said in a note.
Market participants are still focused on the terror attack in
Spain, which happened on Thursday , with a van plowing into crowds
in one of Barcelona's busiest venues, killing at least 14 people
and injuring scores. Islamic State has claimed responsibility
(http://www.marketwatch.com/story/islamic-state-takes-credit-for-deadly-barcelona-attack-on-pedestrians-2017-08-17)
for the terror attack. Hours after the Barcelona incident, police
killed five alleged terrorists following a separate attack that
hurt seven people in Cambrils, a Spanish town southwest of
Barcelona.
European stocks were sharply lower on Friday following the
attacks. Spain's IBEX 35 index was among the hardest hit, down 1%
at 10,342.20.
Also spooking investors were reports on Thursday that Gary Cohn
was planning to resign as an economic adviser to the president. The
White House has countered those rumors.
See:Team Trump losing Gary Cohn could crash the stock market,
warns Yale professor
(http://www.marketwatch.com/story/team-trump-losing-gary-cohn-could-crash-the-stock-market-warns-yale-professor-2017-08-17)
Cohn is "seen as the glue holding Trump's pro-business agenda
together," Deutsche Bank's strategists said. "The fears are that if
he goes, you take a further step back from tax cuts and
deregulation."
The dollar was trading lower on Friday. The ICE Dollar Index was
down 0.2% at 93.480.
Stock movers: Shares in Ross Stores Inc.(ROST) rallied 11% after
the off-price retailer late Thursday reported earnings and sales
above forecasts
(http://www.marketwatch.com/story/ross-stores-shares-rally-as-q2-earnings-top-views-company-forecasts-sales-growth-2017-08-17).
Calpine Corp.(CPN) soared 11% in premarket trade after a Wall
Street Journal report late Thursday said Energy Capital Partners is
closing in on a $17 billion deal
(http://www.marketwatch.com/story/energy-capital-partners-nears-17-billion-deal-to-buy-calpine-report-2017-08-17)
to acquire the power company.
U.S.-listed shares of Infosys Ltd.(500209.BY) slid 8.9% after
Vishal Sikka on Friday resigned as chief executive
(http://www.marketwatch.com/story/infosys-ceo-resigns-citing-resistance-to-change-2017-08-18).
Foot Locker Inc. (FL) plunged 25% after the sports-apparel
company significantly missed profit forecasts
(http://www.marketwatch.com/story/foot-locker-shares-tumble-15-after-profit-and-sales-fall-short-of-estimates-2017-08-18).
Deere & Co.(DE) opened at a three-month low, with shares
down 7% after quarterly sales at the farming-equipment company
missed expectations
(http://www.marketwatch.com/story/deeres-stock-drops-after-sales-miss-offsets-profit-beat-2017-08-18).
On an upbeat note in Friday's earnings, Estée Lauder Cos.(EL)
climbed 4.7%. Both earnings and profit at the beauty company beat
estimates
(http://www.marketwatch.com/story/estee-lauder-shares-rise-nearly-5-after-earnings-beat-2017-08-18).
Economic news: A consumer sentiment reading for August is due at
10 a.m. Eastern Time.
On the Federal Reserve front, Dallas Fed President Robert Kaplan
is due to speak at a community college event in Dallas at 10:15
a.m. Eastern.
Other markets:Asia markets closed broadly lower
(http://www.marketwatch.com/story/nikkei-slumps-to-3-month-low-as-asian-markets-dip-2017-08-17),
with Japan's Nikkei 225 index finishing at a three-month low.
Oil prices traded slightly higher on Friday, rising 0.2% to
$47.19 a barrel. Metals were higher across the board, with gold
added 0.7% above $1,300 an ounce on increased haven demand.
(END) Dow Jones Newswires
August 18, 2017 09:46 ET (13:46 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.