Wall Street reverses three-day rally as Apple falls, trade optimism fades
U.S. stocks were on track to snap a three-day rally on Friday after White House economic adviser Larry Kudlow weakened optimism over U.S.-China trade talks and as Apple shares dropped following a disappointing forecast.
While President Donald Trump would meet China President Xi Jinping this month, he has not asked U.S. officials to draw up a proposed trade plan, Kudlow told CNBC, contradicting a report earlier in the day that had buoyed hopes of a trade dispute resolution.
Stocks extended losses following the news, with the trade-sensitive industrial sector <.splrci>, which was up as much as 1.13 percent earlier, falling to a session low. It was last down 0.1 percent.
"That tells you tariffs are still a factor, and from the reaction we saw there, that tells me it`s heavier weighting in the investment decision than what people were anticipating before," said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio, which manages about $1.3 billion.
That dragged down shares of its U.S. suppliers, mostly chipmakers, and pushed the S&P technology sector <.splrct> lower.
The Dow Jones Industrial Average <.dji> fell 164.96 points, or 0.65 percent, to 25,215.78, the S&P 500 <.spx> lost 23.35 points, or 0.85 percent, to 2,717.02 and the Nasdaq Composite <.ixic> dropped 93.14 points, or 1.25 percent, to 7,340.92.
Economic data was healthy, with the Labor Department`s payrolls report showing job growth rebounded sharply in October, pointing to further labour market tightening that could encourage the Federal Reserve to raise benchmark interest rates in December.
Other earnings reports were more upbeat.
Declining issues outnumbered advancing ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favoured decliners.
The S&P 500 posted 8 new 52-week highs and five new lows; the Nasdaq Composite recorded 38 new highs and 43 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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