Hello traders everywhere. Stocks wavered Friday after President Donald Trump threw cold water on recent U.S.-China trade optimism by saying he has not agreed to roll back existing tariffs.
President Trump made his comment Friday, noting Beijing would like him to scrap those levies. Those comments came after trade optimism earlier in the week, sparked a massive rotation out of bonds, and lifted equities to record levels.
The Dow Jones traded 55 points lower, while the S&P 500 and Nasdaq fluctuated around the flatline.
Entering Friday afternoon's run to the close, the DOW is up 1% for the week. The S&P 500 and Nasdaq are both up 0.6% and .8% for the week. It would be the third straight week of gains for the DOW while the S&P 500 headed for its fifth straight weekly gain. The Nasdaq was on pace for a six-week winning streak.
A spokesperson for the Chinese Commerce Ministry said Thursday that China and the U.S. had agreed to cancel existing tariffs in phases. A U.S. official also said reportedly; both sides agreed to roll back the levies in tranches.
The risk-on sentiment from earlier in the week took a big bite out of bonds. The U.S. 10-year Treasury yield jumped more than 15 basis points at one point on Thursday, its most significant upward move since the 2016 election.
The sentiment was also boosted this week by corporate earnings results that have generally beaten expectations. Of the 425 S&P 500 companies that have reported thus far, 74% have beaten estimates, according to FactSet.
Most recently, Disney posted better-than-forecast quarterly numbers, sending the stock up about 4%. Disney's revenues for its media and networks segment topped a FactSet estimate, while sales for the company's parks, studio entertainment, and direct-to-consumer businesses also beat expectations. The stock also got a lift from increasing enthusiasm around next week's launch of Disney+.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 2,991.21
- Dow (INDEX:DJI): 26,714.34
- NASDAQ (NASDAQ:COMP): 8,078.35
- U.S. Dollar (ICE:DX): 98.35
- Gold (NYMEX:GC.Z19): 1,493.00
- Crude Oil (NYMEX:CL.Z19): 57.35
- Bitcoin (BITCOIN:BITSTAMPUSD): 7,293.55