FYI: Dwindling optimism about trade and lackluster economic data weighed on stocks Friday, setting up major U.S. indexes for a second straight week of losses.
Stocks edged higher early in the day but hit session lows after a news report that the White House is weighing limiting investment in China. Fresh data showed that consumers pulled back on spending recently and businesses pulled back on investment, heightening worries about economic growth at a time when two of the biggest global economies remain embroiled in a trade conflict.
The S&P 500 fell .53%, the Dow Jones Industrial Average lost 70 points, or 0.26%, paring earlier gains of as much as 121 points. The Nasdaq Composite lost 1.13%, as losses accelerated midday.
The latest swing in stocks came after Bloomberg News reported that Trump administration officials are considering ways to limit U.S. investors’ portfolio flows into China. For some, the stock market reaction highlighted how sensitive investors are to developments on trade between the two countries.
Shares of tech companies were some of the hardest hit Friday, while financials stocks outperformed the broader market, continuing a trend from this month. One of the biggest decliners was Micron Technology , which tumbled 11.2% after the company reported late Thursday a decline in sales and earnings in the latest quarter.
Wells Fargo shares climbed 3.6% after the San Francisco bank appointed Charles Scharf as chief executive and president. Mr. Scharf is leaving Bank of New York Mellon to succeed C. Allen Parker, interim CEO since Timothy Sloan resigned in late March.
Shares of Bank of America added 0.4%, while JPMorgan edged up 0.3%.
Investors continued to watch for signs of the health of the domestic economy, especially as concerns about wobbling growth world-wide have mounted.
Fresh data showed U.S. consumer spending slowed more than expected in August, a sign that a key part of the economy could be losing steam. Meanwhile, one proxy for business investment—orders for nondefense capital goods excluding aircraft—declined in August, recording its weakest performance since April, the Commerce Department said. That data highlighted the toll that trade tensions with China could take on the domestic economy. Economists ramped down estimates of third-quarter economic growth after Friday’s data.
Global oil benchmark Brent crude slipped more than 1% after The Wall Street Journal reported that Saudi Arabia moved to impose a partial cease-fire in Yemen. Houthi forces in a surprise move last week declared a unilateral cease-fire in the country.
The Stoxx Europe 600 rose 0.5%, with the U.K.’s FTSE 100 up 1% after a Bank of England official said an interest-rate cut could be needed even if a Brexit deal is reached.
Elsewhere, stocks closed broadly lower in Asia, with Tokyo’s Nikkei down 0.8% and Hong Kong’s Hang Seng down 0.3%. Shares in Shanghai were an outlier, edging up 0.1%.
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-09-27/your-evening-briefingMarketWatch:
https://www.marketwatch.com/story/stock-index-futures-point-to-higher-start-for-wall-street-2019-09-27/printWSJ:
https://www.wsj.com/articles/global-stocks-waver-after-weak-chinese-data-11569572823Bloomberg:
https://www.bloomberg.com/news/articles/2019-09-26/asia-stocks-set-for-mixed-start-treasuries-rise-markets-wrap?srnd=premiumIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-tumbles-again-on-track-monthly-gain/CNBC:
https://www.cnbc.com/2019/09/27/dow-futures-consumer-spending-inflation-data.htmlReuters:
https://uk.reuters.com/article/us-usa-stocks/wall-street-drops-as-white-house-weighs-delisting-chinese-companies-idUKKBN1WC1CBU.K:
https://uk.reuters.com/article/uk-britain-stocks/ftse-100-hits-near-two-month-high-as-rate-cut-remarks-enfeeble-sterling-idUKKBN1WC0O7Europe:
https://www.reuters.com/article/us-europe-stocks/miners-drive-gains-in-europe-as-sterling-falls-idUSKBN1WC0NOAsia:
https://www.cnbc.com/2019/09/27/asia-markets-september-27-us-china-trade-talks-oil-currencies.htmlBonds:
https://www.cnbc.com/2019/09/27/treasury-yields-rise-as-impeachment-and-trade-remain-in-focus.htmlCurrencies:
https://www.cnbc.com/2019/09/27/forex-markets-us-china-trade-war-in-focus.htmlOil
https://www.cnbc.com/2019/09/27/oil-drops-after-irans-president-said-us-offered-to-remove-all-sanctions-in-exchange-for-talks.htmlGold:
https://www.cnbc.com/2019/09/27/gold-markets-us-politics-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
