U.S. Stocks Decline in Quiet Trading
August 18 2017 - 5:02PM
Dow Jones News
By Corrie Driebusch and Justin Yang
-- Global stocks down following Spain attacks
-- Haven assets advance
The Dow Jones Industrial Average ended the week lower, capping a
rocky stretch that included political turmoil, some disappointing
earnings and terrorism.
Indexes spent much of Friday hovering between slight gains and
losses, as a lack of major economic data and corporate earnings
contributed to quiet trading. Then declines picked up toward the
close of Friday's session.
The Dow industrials fell 76 points, or 0.4%, to 21675 on Friday,
posting a weekly decline of 0.8%. The S&P 500 fell 0.2% Friday,
while the Nasdaq Composite shed less than 0.1%.
The Dow industrials had briefly jumped into positive territory
following reports that chief strategist Steve Bannon was leaving
his role at the White House. Mr. Bannon has been viewed as a
controversial figure within the administration.
A day earlier, the Dow industrials posted their biggest decline
in three months, as Wal-Mart Stores and Cisco Systems declined
following earnings, and investors were rattled by a terror attack
in Spain and fallout from President Donald Trump's remarks on the
protests in Charlottesville, Va.
"A lot of that drama isn't going to price stocks in the long
term, but it does cause short-term movement," said Kenny Polcari,
director at brokerage O'Neil Securities.
Corporate earnings, he added, are the important long-term
drivers of share prices.
Wal-Mart shares fell on Thursday after the company said
same-store sales rose but profit fell. Earlier in the week, shares
of Advance Auto Parts and Dick's Sporting Goods posted their
biggest percentage declines on record after the companies missed
earnings expectations.
On Friday, shoe retailer Foot Locker tumbled 28% after its
earnings failed to meet analyst expectations on profit and
sales.
In the latter part of the week, investors shifted to assets
viewed as safer in times of stress, citing concerns about simmering
geopolitical tensions and the Trump administration's strained
relationship with business leaders.
The yield on the 10-year Treasury note slipped marginally to
2.196% Friday from 2.197% Thursday. Yields fall as prices rise.
Utility companies, viewed as bond proxies for stock investors,
were among the best performers in the S&P 500 on Friday.
At the same time, investors fled from smaller-company shares.
The Russell 2000, a benchmark of small stocks, fell 1.2% during the
week. The index jumped in late 2016 as investors bet that smaller,
U.S.-focused companies would benefit from Mr. Trump's policies.
This year, the index has largely underperformed the broader stock
market.
European markets were broadly lower Friday. The Stoxx Europe 600
slid 0.7%, while Spain's benchmark IBEX 35 dropped 0.6%.
Shares of European travel companies suffered some of the largest
losses of the day. International Consolidated Airlines Group -- one
of the biggest decliners in the U.K. -- fell 2%. Airline shares in
Europe tend to endure a short-lived selloff in the wake of terror
attacks as investors assess the potential for a hit to tourism.
For the week, the Stoxx Europe 600 rose 0.6%.
In Asia, markets were lower Friday with financial shares among
the region's biggest decliners.
Japan's Nikkei Stock Average fell 1.2%, putting its weekly loss
at 1.3%, its largest since mid-May.
Write to Corrie Driebusch at corrie.driebusch@wsj.com
(END) Dow Jones Newswires
August 18, 2017 16:47 ET (20:47 GMT)
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