By Sue Chang and Chris Matthews, MarketWatch
Boeing shares turn lower after brief reprieve
U.S. stocks closed mostly lower Thursday as investors digested
headlines suggesting progress toward a U.S.-China trade deal has
stalled against the backdrop of weaker-than-expected Chinese
economic data.
How did major indexes fare?
The Dow Jones Industrial Average bucked the broader market's
decline to rise 7.05 points to 25,709.94. The S&P 500 index
slipped 2.44 points to 2,808.48, and the Nasdaq Composite Index
shed 12.50 points, or 0.2%, to 7,630.91.
What drove the markets?
A meeting between President Donald Trump and Chinese President
Xi Jinping will be delayed until at least April
(https://www.bloomberg.com/news/articles/2019-03-14/china-u-s-said-to-push-back-trump-xi-meeting-to-at-least-april?srnd=premium),
Bloomberg News reported, indicating that a bilateral trade deal
will not be finalized this month.
(https://www.bloomberg.com/news/articles/2019-03-14/china-u-s-said-to-push-back-trump-xi-meeting-to-at-least-april?srnd=premium)
The news comes after Trump told reporters in the White House on
Wednesday that he was in no rush to strike a trade agreement, and
said there remained the possibility that he could walk away, even
as he expressed optimism about progress in talks.
Disappointing industrial output from China
(http://www.marketwatch.com/story/chinas-industrial-output-slower-than-expected-2019-03-13)
also provided more signs that the world's second-largest economy
has continued to decelerate, heightening anxieties about sluggish
global growth.
Meanwhile, the U.K. Parliament voted to request an extension of
the March 29 Brexit deadline
(http://www.marketwatch.com/story/uk-parliament-backs-brexit-deadline-extension-2019-03-14)
to June 30 if lawmakers can agree to a withdrawal deal by March 20.
Thursday's vote comes after Prime Minister Theresa May failed to
secure support for her revised Brexit plan and lawmakers on
Wednesday ruled out a no-deal exit.
Market participants have closely watched Brexit negotiations
because the threat of a disorderly exit from the EU by Britain
could roil global markets.
What data were in focus?
The number of Americans applying for first-time unemployment
benefits rose by 6,000 to 229,000
(http://www.marketwatch.com/story/jobless-claims-rise-to-one-month-high-of-229000-but-rate-of-layoffs-still-very-low-2019-03-14)
during the week ended March 9, above the 225,000 reading expected
by economists polled by MarketWatch.
The price of imported goods rose by 0.6%
(http://www.marketwatch.com/story/february-import-prices-jump-06-but-its-all-fuel-us-not-importing-inflation-from-abroad-2019-03-14)
in February, the largest one-month increase in nine months.
Nevertheless, the 12-month change in import prices remains in
negative territory, down 1.3% since last March.
New-home sales fell nearly 7%
(http://www.marketwatch.com/story/new-home-sales-drop-7-in-january-as-housing-market-gets-off-to-slow-start-in-2019-2019-03-14)
in January, to an annual rate of 607,000, the Commerce Department
said.
What were strategists saying?
Jay Pestrichelli, chief executive officer at ZEGA Financial,
told MarketWatch that the S&P 500 has been bumping up against a
key resistance level of around 2,807 the past couple days, reaching
a five-month high Wednesday, suggesting that it may be time for
stocks to retrace recent gains.
However, looking at the options market tells a different story,
Pestrichelli said. "The VIX (CBOE Volatility index) has been
telegraphing where the market will go for a while," noting that the
index, which measures fear in the market based on the magnitude of
recent options buying, has hit lows not seen since last fall. This
suggests that many investors feel the market has more room to run
from here, he said.
"After a few quiet days outside of Boeing and Brexit to kick off
the week, the flow of news is a bit more active this morning,"
wrote Paul Hickey of Bespoke Investment Group, in a note to
clients.
"Positive sentiment in equity futures has quickly worn off this
morning as headlines indicate that the U.S. and China have put off
a planned meeting between President Trump and President Xi later
this month," he said. "Sticking points like the treatment of
intellectual property remain unresolved. The delay shouldn't be
entirely surprising given the president's comments just yesterday
that he was in no rush to sign a deal."
Which stocks were in focus?
Boeing Co. (BA) shares fell 1% after U.S. regulators grounded
737 Max 8 and 9
(http://www.marketwatch.com/story/us-to-ground-boeing-737-max-8-and-9-jets-trump-says-2019-03-13)
aircraft in line with similar decisions in other countries.
See: Here's what Wall Street hopes for Boeing in the wake of the
737 Max grounding
(http://www.marketwatch.com/story/heres-what-wall-street-hopes-for-boeing-2019-03-14)
Facebook Inc. (FB) shares dropped 1.9% after the New York Times
(https://www.nytimes.com/2019/03/13/technology/facebook-data-subpoenas.html)
reported that a grand jury under the supervision of prosecutors
from the Eastern District of New York is undertaking a criminal
investigation
(http://www.marketwatch.com/story/facebook-data-sharing-being-investigated-by-grand-jury-report-2019-03-13)
into the social-media platform's data-sharing practices.
General Electric Co. (GE) shares rose 2.8% as the company hosted
an analysts event and released its 2019 outlook
(http://www.marketwatch.com/articles/ge-outlook-stock-guidance-forecasts-2019-51552566315).
Shares of Dollar General Corp. (DG) sank 7.5% after the discount
retailer
(http://www.marketwatch.com/story/dollar-generals-stock-drops-after-profit-miss-downbeat-outlook-offset-sales-beat-and-raised-dividend-2019-03-14)
reported a fiscal fourth-quarter profit that missed expectations
and provided a downbeat earnings and sales outlook.
Johnson & Johnson(JNJ) shares declined 1% after the company
was ordered
(http://www.marketwatch.com/story/jjs-stock-falls-after-reports-company-ordered-to-pay-29-million-to-woman-dying-of-cancer-2019-03-14)
to pay $29 million to a woman dying of cancer. The court determined
J&J was liable in the suit, which claimed the cancer --
mesothelioma -- was caused by the asbestos in the company's talcum
powder, the reports said.
How did other markets trade?
Stock markets in Asia ended lower
(http://www.marketwatch.com/story/asian-markets-give-up-early-gains-on-weak-china-industrial-data-2019-03-13)
after data showing that Chinese industrial production slowed more
than expected in January and February. The Shanghai Composite index
fell 1.2%, while Japan's Nikkei 225 edged down.
European stocks
(http://www.marketwatch.com/story/european-markets-struggle-for-direction-after-mays-brexit-deal-defeat-2019-03-13),
meanwhile, rose, with the Stoxx Europe 600 adding 0.8%.
Crude oil prices extended their winning streak
(http://www.marketwatch.com/story/oil-pressured-amid-uncertainty-over-us-china-trade-talks-2019-03-14).
Gold prices settled lower
(http://www.marketwatch.com/story/gold-pulls-back-from-march-high-to-edge-back-below-1300-an-ounce-2019-03-14),
while the U.S. dollar rose against peers
(http://www.marketwatch.com/story/dollar-snaps-losing-streak-british-pound-pulls-back-from-9-month-high-2019-03-14).
--Mark DeCambre contributed to this report
(END) Dow Jones Newswires
March 14, 2019 19:32 ET (23:32 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.