MARKET SNAPSHOT: Stocks Edge Lower, But Are Set For Weekly Gains, As Investors Seek Political Clarity
March 17 2017 - 11:53AM
Dow Jones News
By Sara Sjolin, MarketWatch , Ryan Vlastelica
Financials slump, but Adobe rises after earnings
U.S. stocks were slightly lower on Friday as investors monitored
a meeting of Group of 20 finance ministers in Germany, which could
provide some insight into the current status of geopolitical
issues, though major indexes were on track for another week of
gains.
Investors are also watching for news from the meeting in
Washington between President Donald Trump and German Chancellor
Angela Merkel, postponed from earlier in the week.
The Dow Jones Industrial Average fell 13 points to 20,922, while
the S&P 500 dipped 2 points to 2,379 and the Nasdaq Composite
Index was down 8 points, trading at 5,893.
All three were down less than 0.1% on the day and that was
enough to protect their weekly gains. The S&P 500 is on track
for a 0.4% weekly advance, while the Dow is up less than 0.2%. The
Nasdaq Composite eyed a 0.7% gain, with the outsize move coming
from strong performance by technology stocks during the week.
Equities have been in an uptrend of late. Both the S&P and
the Nasdaq are set to post their seventh weekly gain of the past
eight weeks, while the Dow is set for its fifth weekly advance of
the past six weeks.
Index losses Friday were primarily due to the financial sector
(XLF), which dropped 0.9% on the day. Goldman Sachs Group Inc. (GS)
lost 1.3% while Morgan Stanley(MS) was off 1.3%. Otherwise stocks
were mostly positive, with eight of the 11 primary S&P 500
sectors higher on the day.
Finance ministers from industrialized and emerging-market
economies are gathering in Baden-Baden for a G-20 meeting, the
first for new U.S. Treasury Secretary Steven Mnuchin. The U.S.
finance chief is expected put pressure on other countries to boost
the value of their currencies, given Trump's push for a weaker
dollar, while the Trump administration's protectionist policies are
also a focus.
Read:Trump's dollar paradox could fuel trade tensions at G-20
(http://www.marketwatch.com/story/trumps-dollar-paradox-could-fuel-trade-tensions-at-g-20-2017-03-17)
"This is the first time that global leaders are interacting with
the Trump administration on a large scale, and you have to expect
the market will be quiet ahead of a major question mark like that,"
said Adam Sarhan, chief executive officer at 50 Park
Investments.
"So far Trump has gotten the benefit of the doubt from foreign
leaders, so there's a high likelihood that we come out of this with
a positive framework, but there's no question that we're in a
period with lofty valuations and stretched positive sentiment," he
said. "The cards are shaping up for a climatic run marked by panic
buying, rather than panic selling, which is a sign you're in the
late stage of a bull market."
Germany is one of the countries seen by Trump as having an
unfair trade advantage. The country's leader, Merkel, is scheduled
to visit Trump in the White House Friday, in a meeting postponed
from earlier in the week due to the East Coast snowstorm Tuesday.
Russia and immigration, as well as trade, are seen as likely topics
on the agenda.
In the latest economic data, industrial production was flat
(http://www.marketwatch.com/story/industrial-output-flat-in-february-held-down-by-utility-production-2017-03-17)
in February, below expectations for a rise of 0.3%. Separately, the
index of consumer sentiment
(http://www.marketwatch.com/story/consumer-sentiment-still-running-high--except-among-democrats-2017-03-17)
rose to 97.6 in March from 96.3 in February, based on a preliminary
reading by the University Michigan. This was slightly below the
reading of 98 that had been expected.
The Conference Board said its leading economic index
(http://www.marketwatch.com/story/leading-indicators-reach-highest-level-in-a-decade-2017-03-17)
rose 0.6% in February -- the third straight gain of that magnitude
-- to reach its highest level in more than a decade.
Trading on Friday could be more volatile than usual due to
so-called quadruple witching, as stock-index futures, stock-index
options, stock options and individual stock futures all expire on
the same day.
Read:Worlds will collide when the cautious Merkel meets the
impetuous Trump
(http://www.marketwatch.com/story/worlds-will-collide-when-the-cautious-merkel-meets-the-impetuous-trump-2017-03-13)
See:
Stock movers: Shares of Adobe Systems Inc.(ADBE) jumped 5.8%
after the software company late Thursday reported
better-than-expected quarterly profit and sales
(http://www.marketwatch.com/story/adobe-shares-rise-as-earnings-beat-expectations-2017-03-16).
High-end jeweler Tiffany & Co.(TIF) jumped 2.4% after it
reported better-than-expected earnings
(http://www.marketwatch.com/story/tiffanys-stock-climbs-after-profit-beat-upbeat-outlook-2017-03-17)
and gave an upbeat outlook.
Other markets:Asian stock markets closed mixed
(http://www.marketwatch.com/story/asian-markets-largely-retreat-ahead-of-g-20-meeting-2017-03-16)
ahead of the G-20 meeting.
Stocks in Europe were also mixed, with the Stoxx Europe 600
struggling to hold on to its more-than-one-year high logged on
Thursday.
Oil rose 0.5% on the day while gold rose 0.3%.
(END) Dow Jones Newswires
March 17, 2017 11:38 ET (15:38 GMT)
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