By Sue Chang and Mark DeCambre, MarketWatch
Nvidia slumps as cryptocurrency mining sales fall
The S&P 500 index and the Dow Jones Industrial Average rose
Friday, building on their gains from the previous session, but
technology shares weighed on the Nasdaq, keeping the index in the
red.
Lingering worries about Turkey's fiscal health and China's
wobbly economy also kept stock-buying enthusiasm in check.
What are the main benchmarks doing?
The Dow industrials reversed early losses to rise 51 points, or
0.2%, at 25,610, while the S&P 500 index edged up less than a
point higher to 2,841. The Nasdaq Composite shed 25 points, or
0.3%, to 7,781.
The iShares PHLX Semiconductor ETF (SOXX), a popular index that
tracks semiconductor manufacturers, was down 1.2% on weakness in
quarterly results from chip makers Nvidia Corp.(NVDA) and Applied
Materials Inc.(AMAT)
On Thursday, the Dow, S&P 500 and Nasdaq Composite all rose
with the blue-chip index
(http://www.marketwatch.com/story/us-stock-futures-point-to-gains-on-easing-geopolitical-concerns-cisco-results-2018-08-16)
logging its best day since April.
The Dow and S&P 500 are on pace for weekly gains of 1.2% and
0.3%, respectively, while the Nasdaq is down 0.7%, hamstrung by
week-to-date declines for Microsoft Corp. (MSFT), Facebook Inc.
(FB) and Google-parent Alphabet Inc. (AAPL) over the past five
sessions.
What's driving markets?
Investors continue to monitor the latest developments on the
trade front. On Thursday, there was cause for optimism as the U.S.
and China prepared to resume trade talks
(http://www.marketwatch.com/story/china-says-it-will-resume-trade-talks-with-us-2018-08-16)
next week. However, the new U.S. special representative for Iran
said that the Trump administration was prepared to impose sanctions
on all countries that buy oil from Iran
(http://www.marketwatch.com/story/us-hints-china-could-face-sanctions-over-iranian-oil-imports-2018-08-16),
a list that includes China.
Most recently, the Turkish lira was down about more than 4%
against the U.S. dollar , with the buck buying 6.042 lira, compared
with 5.8246 lira late Thursday in New York.
While geopolitical issues surrounding trade and Turkey will
likely remain short-term market drivers, investors are also
monitoring the final batch of second-quarter results, which are
likely to offset some of the trouble from abroad.
What are strategists saying?
Jack Ablin, chief investment officer at Cresset Wealth Advisors,
described Friday's slump as a "cooling off" in a seasonally choppy
period for equity markets, with investors following disappointing
results from chip makers and a revealing newspaper interview with
Tesla Chief Executive Elon Musk.
"It's a little cooling off period after yesterday and obviously
everyone is watching Elon Musk and some of the chip makers too,"
Ablin said.
"Stock markets had a strong finish yesterday over renewed hopes
of a resolution to the trade spat between the U.S. and China," said
David Madden, an analyst at CMC Markets UK, in a note.
Which stocks are in focus?
Chip company Nvidia Corp.(NVDA) and chip manufacturer Applied
Materials Inc.(AMAT) both reported earnings late Thursday. A
decline in cryptocurrency-mining sales
(http://www.marketwatch.com/story/nvidia-stock-falls-as-crypto-mining-decline-overshadows-earnings-beat-2018-08-16)
weighed on Nvidia, sending shares down 5.1%, while a
weaker-than-expected guidance
(http://www.marketwatch.com/story/applied-materials-stock-falls-after-earnings-beat-weak-guidance-2018-08-16)
pushed Applied Materials shares down by 7.1%.
Nordstrom Inc.(JWN) soared 12% after the retailer posted
better-than-expected earnings and raised its outlook
(http://www.marketwatch.com/story/big-boost-in-internet-sales-help-nordstrom-beat-on-earnings-raise-outlook-2018-08-16).
The stock of farm-equipment maker Deere & Co.(DE) fell 3%
after issuing a downbeat growth outlook
(http://www.marketwatch.com/story/deeres-stock-drops-after-revenue-beat-downbeat-growth-outlook-2018-08-17).
Tesla Inc. (TSLA) shares slumped 8.3% after Chief Executive Elon
Musk told the New York Times
(http://www.marketwatch.com/story/teslas-elon-musk-describes-excruciating-year-says-worst-is-yet-to-come-2018-08-17)
the past year had been "excruciating" and "the most difficult and
painful" of his career.
DSW Inc. (DSW)shares sank
(http://www.marketwatch.com/story/dsw-shares-down-7-after-downgrade-on-margin-pressure-from-new-loyalty-program-2018-08-17)
5.4% it was downgraded to negative from neutral at Susquehanna
Financial Group due to higher costs and margin pressure.
Which economic data are in the spotlight?
The University of Michigan said its consumer-sentiment index
(http://www.marketwatch.com/story/us-consumer-sentiment-drops-to-11-month-low-in-august-2018-08-17)
in August fell to 95.3, down from 97.9 in July, the lowest level in
11 months. Economists polled by MarketWatch expected a reading of
98.5.
Meanwhile, U.S. leading economic indicators jumped 0.6% in
July.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
What did other markets do?
European stocks were mixed
(http://www.marketwatch.com/story/european-stocks-flat-but-on-track-for-third-straight-down-week-2018-08-17)
and Asian markets all rose
(http://www.marketwatch.com/story/asian-markets-shoot-higher-as-tech-stocks-rebound-2018-08-16)
except China's Shanghai Composite Index which closed down 1.3%,
ending the week down 4.5% and marking the lowest close in nearly
two years.
Oil futures
(http://www.marketwatch.com/story/oil-higher-but-on-track-for-weekly-loss-on-supply-concerns-2018-08-17)
were higher while gold traded mostly flat
(http://www.marketwatch.com/story/weaker-gold-heads-for-3-weekly-drop-2018-08-17)
and the U.S. dollar
(http://www.marketwatch.com/story/dollar-slips-against-g10-but-rallies-against-emerging-currencies-2018-08-17)
fell 0.4%.
--Victor Reklaitis contributed to this report
(END) Dow Jones Newswires
August 17, 2018 13:16 ET (17:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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