by Caroline Valetkevitch
NEW YORK (Reuters) – The New York Stock Exchange ended lower on Friday, after three straight days of rally, as enthusiasm was chilled by disappointing forecasts from Apple and comments by the White House's economic advisor. was less optimistic about the imminence of a trade deal with China.
The Dow Jones, which had opened up in a climate of optimism on trade relations between the two countries, ended down 109.91 points, or 0.43%, to 25,270.83.
The broader S & P-500 dropped 17.31 points, or 0.63%, to 2,723.06. The Nasdaq Composite fell by 77.06 points (-1.04%) to 7.356.99 points.
Over the week as a whole, however, the Dow took 2.35%, the S & P 2.41% and the Nasdaq 2.65%.
These are the highest weekly percentage increases for the S & P and Nasdaq since May, and the best week for the Dow Jones since June.
White House economic adviser Larry Kudlow said during the meeting that Washington and Beijing were not close to an agreement to resolve their commercial differences and he was less optimistic about the likelihood agreement of this type be concluded.
In an interview with CNBC television, he also denied press reports that Washington was already drafting the possible terms of an agreement.
The market has exacerbated its losses as a result of these comments from Trump's economic adviser, the industrial sector, particularly sensitive to global trade, which took up to 1.13% before these declarations, ended down 0.28 %.
"This proves that customs duties are always a factor and, seeing the market reaction, I conclude that it has more weight than investors expected," says Michael Matousek, head of trading at US Global Investors.
Shortly thereafter, Donald Trump said that much progress had been made in trade negotiations with Beijing and predicted that the world's two largest economies would sign a very good agreement.
The US president also confirmed that he will meet Chinese President Xi Jinping on the sidelines of the G20 summit in Argentina on November 30 and December 1.
The sharp decline of the giant Apple also weighed heavily on the market sentiment with a drop of 6.63% to 207.48 dollars in closing, the valuation of the brand to the apple being ironed under the $ 1,000 billion.
The iPhone maker is now forecasting a weakening of demand in some emerging markets for the current quarter, reigniting fears over the technology sector's earnings outlook.
The "high tech" fund posted the strongest sector with a fall of 1.89%.
Other results had a more positive impact.
Chevron took 3.2% after announcing that its quarterly profit had doubled, thanks to record oil and gas production.
Starbucks jumped 9.7%. The first global coffee chain posted better-than-expected quarterly results thanks to price increases in the United States and a rebound in sales in China.
INDICATORS OF THE DAY
Another factor that contributed to the decline of the New York Stock Exchange, the figures above expectations of job creation in the United States. They rebounded sharply in October and wages have recorded their strongest year-on-year growth for the past nine and a half years, signaling persistent labor market pressures that could encourage the Federal Reserve (Fed) to continue in the labor market. monetary tightening.
"Economic data continues to be strong enough for the Fed to maintain monetary tightening, and we expect rates to rise in December and around two more next year," said Kathy Jones, Head of Strategy Strategy at Schwab Center. for Financial Research.
THE SESSION IN EUROPE
European stock markets have closed in small rise, their rebound was slowed by the reversal of trend on Wall Street with Apple and the hopes tarnished on a possible trade agreement between the United States and China.
In Paris, the CAC 40 finished up 0.32% to 5,102.13 points. The German Dax rose 0.44% but the British Footsie lost 0.29%. The EuroStoxx 50 index advanced by 0.32%, the FTSEurofirst 300 by 0.24% and the Stoxx 600 by 0.28%.
For the week as a whole, the Stoxx 600 gained 3.3%, its strongest weekly increase since December 2016. The CAC has meanwhile recovered 2.71% in one week.
On the foreign exchange market, the dollar rose against the yen and the euro after a volatile session, in concern over the evolution of the trade dispute between Washington and Beijing.
The dollar was also supported by US employment statistics showing a sharp rise in job creation and wages, which should bolster the US Federal Reserve on the path to higher rates.
The US currency takes 0.23% against a basket of reference currencies. The euro loses 0.26% to 1.1377 dollar.
The pound has stabilized but is poised to post its biggest weekly gain in seven weeks.
Employment figures in the United States, which are in line with a continuation of the Fed's rate hikes, have led to a sharp rise in the yield on Treasuries, especially 10-year paper, which reached a new high of the day. 3.22%. In Europe, the rate of German government bonds of the same maturity rose to 0.438% against 0.436% Thursday.
Crude prices lost ground in reaction to the announcement that the United States will temporarily exempt eight countries from Iran-related sanctions, which will allow them to continue importing Iranian oil despite the implementation. US penalties against Tehran.
US light crude loses 1.3% to less than 62.86 dollars and Brent yields 0.36% to 72.63 dollars per barrel.
Investors will follow the PMI services indices in China and the United Kingdom, and the ISM services index in the United States, while a meeting of the Eurogroup will be held.
(Laetitia Volga and Juliette Rouillon for French service)