By Mark DeCambre and Sara Sjolin, MarketWatch
Investors absorb Trump issues, attacks in Spain
U.S. stock-index benchmarks traded 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 44 points, or 0.2%,
lower to 21,705, while those for the S&P 500 index fell 3
points, or 0.1%, at 2,426. The Nasdaq Composite Index retreated 6
points, or 0.1%, at 6,214. Gains in shares of chip-equipment
supplier Applied Materials Inc.(AMAT), up 2.3%, were helping to
limit the tech-heavy Nasdaq's losses somewhat after it reported
better-than-expected quarterly results.
Meanwhile, a gauge of small-capitalization stocks, the Russell
2000 index retreated on Friday, down 0.5% and turning negative for
2017
(http://www.marketwatch.com/story/russell-2000-turns-negative-for-2017-in-early-trading-2017-08-18).
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: The market ignored a reading of consumer
sentiment for August that was its highest since January at 97.6.
compared with 93.4 in the prior month.
On the Federal Reserve front, Dallas Fed President Robert Kaplan
was set to speak at a community college event in Dallas late
morning.
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 10:12 ET (14:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.