US. The stock indices were mixed on Friday, but on the way to weekly losses as the decline in chip maker Nvidia's shares weighed on technology sentiment.
How did the benchmarks evolve?
The Nasdaq Composite Index
DJIA, + 0.31%
fell 30 points or 0.4% to 7,229 (Dow Jones Industrial Average)
SPX, + 0.10%
fell 3 points to 2,727, a decrease of 0.1%.
For the week, the Dow will lose 2.6%, the S & P 500 is on track to fall 1.9%, while the Nasdaq will fall 2.4%.
What drove the market?
Stocks of Nvidia Corp. Following disappointing quarterly results on late Thursday, the price fell sharply and contributed to a week of negative triggers.
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Meanwhile, investors watched developments in Britain closely, and Prime Minister Theresa May promised to see Britain leave the country European Union despite several resignations at the highest level and growing doubts about its leadership.
Although the events take place at a distance of 3,460 miles from Wall Street, the dilemma – if it comes to a tough Brexit or no trade pact for Britain – the financial world could seethe, believe some market participants.
In addition, the Brexit drama may increase concern over slowing global growth after the federal government announced on Wednesday that the economy fell in the third quarter for the first time in three years. This follows a similar report from Japan this week, which also saw the world's third-largest economy contract in the third quarter
. Uncertainties in tariff margins between the USA and China, however, remain at the heart of fears among market participants. Throughout the week, fast-paced stories about bargaining progress have led to stock benchmarks.
Which stocks were the focus?
fell 17%. The Nvidia share has already fallen by 22% in the last three months and the PHLX Semiconductor Index
a popular betting product for semiconductor stocks, fell 4.1% in 2018. [Nividia's sell-off was triggered by a release of earnings on Thursday's corporate event]. It showed that sales expectations for the third quarter were down and that emissions forecasts were well below expectations. The sale was reinforced by Stifel Nicolaus, who lowered his target price for the company from $ 200 to $ 250.
Chip Manufacturer Advanced Micro Devices Inc. .
decline in sympathy.
Nordstrom, Inc. . The stock
fell 12.7% after the retailer reported a profit below analyst expectations in the third quarter.
California Utilities PG & E Corp. .
PCG, + 36.70%
and Edison International
EIX, + 13.58%
rose after investors had fled these stocks earlier in the week for the deadly ones , sustained forest fires in California.
Investors were reassured in an interview with Bloomberg by the assurance of US Treasury Commission President Michael Picker that the state would be very reluctant to allow these companies to go bankrupt. PG & E shares rose 38.8% Friday morning while Edison International shares gained 13.5%.
Applied Materials Inc. .
Stocks are in focus after the company announced a guidance on Thursday night that did not meet Wall Street's hopes. The stock fell 4.9% on Friday.
Shares of Viacom Inc. .
reversed their pre-launch price gains, slipping 1.2% early in the session after Friday morning's earnings report showing that Media giant outperformed fourth-quarter profit and revenue expectations for financial business
What do strategists say?
"Normally, the coming Christmas season is a great time for the markets, profits have been strong and we can still expect the tax cuts to continue in the next few quarters," said Michael Arone, chief investment strategist at State Street Global Advisors, opposite MarketWatch.
That this volatility is still evident shows how worried investors are about the slowdown in growth of technology companies that have taken market leadership for so long, trade relations between the US and China, rising interest rates, and the impact to the world "Business and US multinational companies with a stronger dollar," said Arone.
Expect that the tech sector will end badly after the bleak Nvidia earnings, wrote Joel Kulina, an analyst at Wedbush Securities, in a note to clients.  "The mood of technology is still fragile in light of the deteriorating trends in various end markets, and it is becoming increasingly clear that many [companies] of the tech industry have diminishing visibility," Kulina wrote, warning in the near future Future ahead of tech investors should stick to the strategy "rallies are to be sold".
"Theresa May had a catastrophic day yesterday, and investors are still peripheral to the political situation in the UK," said David Madden, market analyst at CMC Markets UK
What data is central?
- Industrial production rose 0.1% in October from September, below consensus forecasts of 0.2%, according to a market survey of economists.
- Capacity utilization dropped from 78.5% to 78.4%, exceeding expectations by 78.2%.
- The Kansas City Fed will release its Regional Manufacturing Index at 11:00 am Eastern
- Rig Count data from Baker Hughes will be released this afternoon at 1:00 pm Eastern
How are other markets traded?
Asian markets were mixed on Friday, with pressure on chip makers putting the Nikkei under pressure
fell 0.6%, while Chinese benchmarks rose slightly. European stocks are burdened by the Brexit Group, such as the Stoxx Europe 600
has fallen by 0.7%, the FTSE 100
fell 0.7% and the DAX
DAX, + 0.16%
has fallen by 0.9%.
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