Wall Street Overview
Stocks tumbled on Friday, Dec. 14, and global shares slumped after economic data in China, the world's second-largest economy, were weaker than expected.
Retail sales in China during November rose 8.1%, the weakest pace since 2003, and were down 8.6% the previous month. Industrial output rose 5.4% compared with a 5.9% increase in October. [Http://enwikipediaorg/wiki/Industrialoutput_the_the_rearth_the_three_time_of_the_human_and_the_population_of_the_human_of_the_customs_of_the_human_relationship_of_the_human_relationship_of_the_human_relationship_of_the_human_relationship_of_the_human_relationship_of_the_human_relationship_of_the_human_human_human_human_human_human_human_human_human_human_human_human_human_human_human_human_human_human_human_handChinaliftinginvestorsentimentTheDowJonesIndustrialAveragefell523pointsor21
The Dow Jones Industrial Average fell 523 points, the S & P 500 fell 2.05%, and the Nasdaq tumbled 2.2%.
Stocks in Shanghai closed down 1.53% on Friday, Hong Kong shares declined 1.62%, and Japanese stocks slid more than 2%.
However, China said Friday it would suspend additional 25% tariffs on US-made cars and parts for three months starting Jan. 1, 2019, as part of the trade was truce with the United States. Tesla Inc. (TSLA) was down 2.6% after the electric vehicle company said it would cut prices on Model S and Model X vehicles in China.
Retail sales for November rose 0.2%, matching economists' estimates. The core reading. which removes gas and auto sales, rose 0.5%.
Johnson & Johnson (JNJ) fell 10% Friday ] Reuters reported Friday that Johnson & Johnson issued a $ 4.7 billion to 22 women who said the products contained asbestos and caused them to develop ovarian cancer. Reuters thus said the company tried, unsuccessfully, to influence plans by
Starbucks Corp. regulators to reduce the amount of asbestos. (SBUX) Down 2.7% After the Coffee Chain Unveiled an Aggressive Expansion Strategy in China that could be slowing consumer sales in the world's second-largest economy and guided investors to modestly long-term earnings growth.
Starbucks said it expects long-term earnings growth of around 10%, down from a previous forecast of about 12% and said same-store sales expansion is likely to grow at a 3% to 3.4% rate even after a newly unveiled partnership with Uber Eats. Starbucks said it will expand its store footprint into the world's second-largest economy by 6,000 stores over the next four years, nearly double its current total, and wants to open a so-called "virtual" store that utilizes both its own app and those of online e-commerce giant Alibaba Group Holding Ltd. (BABA), a tie-up CEO Kevin Johnson once described as "rocket fuel" for the company's growth strategy.
Shares of Adobe Inc. (ADBE) fell 6.9%
Adobe said adjusted earnings for the three months ended Nov. 30, were $ 1.87 a share, up 45% from the same period last year but just shy of the Wall Street consensus of $ 1.88. Sales in the quarter were $ 2.46 billion, up 23% from a year earlier and ahead of analysts' forecasts.
Adobe said its sees non-GAAP earnings for its fiscal year at $ 7.75 a share and revenue of $ 11.15 billion,
"Adobe achieves higher revenue than $ 9 billion and outstanding earnings performance in fiscal 2018," said CEO Shantanu Narayen. "In 2018, we made significant investments across our product portfolio, entered new markets, and made strategic acquisitions which we believe will continue to be top and bottom-line performance."
Costco Wholesale Corp. (COST) declined 9% after the retailer posted fiscal first-quarter adjusted earnings of $ 1.61 a share, missing analysts' forecasts of $ 1.62, and revenue of $ 35.07 billion that came in below expectations of $ 37.57 billion. Same-store sales in the quarter rose 8.8%.
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