By Christopher Whittall and Michael Wursthorn 

The S&P 500 edged higher Friday, but steep losses from earlier in the week pushed the broad index to its first weekly loss of November.

Fears that business growth is slowing and the U.S. economy is headed for a rockier road in 2019 were heightened after several more companies, including chip maker Nvidia and retailer Nordstrom, reported disappointing earnings results.

Fresh economic data darkened the picture, with U.S. industrial output for October coming in below analysts' expectations and household indebtedness climbing, according to the Federal Reserve.

Even a fresh bout of optimism that the U.S. and China may be showing signs of progress on a trade deal wasn't enough to kick-start a significant rally, leaving the S&P 500 down 1.6% for the week, its first weekly loss since Oct. 26.

"We're tilted toward a negative near-term outcome and expect a slowdown, " said Barry Bannister, head of institutional equity strategy at Stifel Nicolaus. Mr. Bannister said the outlook has been shaped by ongoing trade tensions and concerns about the Federal Reserve's pace of interest-rate increases.

Stifel and other investors have been paring their exposure to shares of technology companies to spread cash across companies that tend to be more durable in an economic slowdown -- and that continued Friday, with the S&P 500's energy, consumer-staples, health-care and utility sectors all posting gains while the market's growth corners, like tech and consumer discretionary, fell.

But the loss of technology stocks as the market's clear leader has sapped investors of their conviction that the S&P 500 will be able to end the year firmly higher. The latest bout of selling in tech shares, along with a sharp drop in oil prices and concerns around trade, contributed to a painful five-day stretch for the S&P 500 earlier this week that shaved 4% off the index.

The index added 6.07 points, or 0.2%, to 2736.27 on Friday, while the Dow Jones Industrial Average added 123.95 points, or 0.5%, to 25413.22, finishing the week down 2.2%. The Nasdaq Composite declined 11.16 points, or 0.2%, to 7247.87, putting it deeper into correction territory, typically defined as a 10% fall from a recent high.

"There's concern about how close we are to the end of the bull cycle," said Mark Esposito, president of Dallas-based Esposito Securities. "Any [earnings shortfalls] have a huge negative impact on investors psychologically."

Chip maker Nvidia fell $37.96, or 19%, to $164.43 after it reported quarterly sales below analyst expectations and provided downbeat forecasts for the current quarter, making it the worst-performing stock in the S&P 500 on Friday.

Losses among retail stocks added pressure. Nordstrom shares tumbled 8.06, or 8.1%, to 50.93 after the retailer said a multimillion-dollar charge related to delinquent credit-card debt ate into its profit. Other retailers, including Target and Kohl's, also sank.

Trying to offset those losses were shares of utility companies, which rose 1.2% across the S&P 500. The sector got a boost after a top California official said a bankruptcy of PG&E, owner of Pacific Gas & Electric, over wildfire-related liabilities wouldn't be good for California citizens.

PG&E added 6.66, or 38%, to 24.40, its biggest-ever gain, after suffering a brutal six-session run of heavy losses. The gains pulled up shares of most other utility companies, including Edison International.

Major indexes made a bigger rally at one point Friday after President Trump said he may hold off on imposing additional tariffs and that he doesn't want to put "China in a bad position," according to reports. But most of that bounce faded, leaving stocks only slightly higher by Friday's close.

Write to Christopher Whittall at christopher.whittall@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com

(END) Dow Jones Newswires

November 16, 2018 17:22 ET (22:22 GMT)

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