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Home / Business / Stock market today: stocks fall despite employment figures, US-China trade agreement talks-2018-11-02

Stock market today: stocks fall despite employment figures, US-China trade agreement talks-2018-11-02

Despite big news on jobs in October and the talk of a possible US-China trade agreement in the plants, the US stocks fell on Friday as a big loss by Apple The technology companies pulled down and an increase in interest rates charged the companies with high dividends.

The iPhone maker, the world's largest technology company, predicted weak sales growth on Thursday night and said it would no longer publish quarterly phone sales. Apple shares fell 6.6 percent.

Equities had risen in the last three days and still made a big weekly profit after leading to their worst monthly loss in seven years in October. But the positive news from Friday seemed to have little impact on traders. The federal government said employers created 250,000 new jobs in October, far more than analysts had expected, and hourly wages rose 3.1

percent, the highest since early 2009.

In addition, President Donald Trump said he said Thursday with China's Xi Jinping and these trade talks are "progressing well," and Wall Street hopes to find a solution to a deepening dispute, tariffs and other penalties for hundreds of billions of dollars of business between the two Economic powers threatens.

The Dow fell 110 points or 0.4 percent, closing at 25,271. The S & P 500 ended the day down 0.6 percent and the Nasdaq, which has a high concentration of technology companies, lost 1 percent. The Russell 2000 Index of Smaller Stocks gained 0.2 percent.

The S & P 500 rose about 2 percent this week, having rallied strongly in the last three days, but had to reach another 7.9 percent to reach its all-time high on September 20.

A Hopeful Start

Many investors had started the day hopefully. Overseas stocks rose sharply after Mr. Trump announced that he had asked US officials to work out possible terms for a new trade agreement with China. The President, who met in November at the summit meeting of the Group of 20 Nations in Argentina wanted to reach a new pact, Bloomberg News reported.

Trading tensions have weighed on investor sentiment as Trump's tariffs on Chinese imports have led more than 100 US listed companies to disclose how much import tariffs could hurt them, said Liz Ann Sonders, chief investment officer Strategist of Charles Schwab. 19659002] "Businesses say," That bites and here's like, "she said." They're starting to talk about profit margins and whether they pass the costs on to consumers. "

Mr. Trump gave no details on his talks with Xi, but there have been few signs of movement in the trade dispute over the last few months, investors are nervous about the prospect of huge tariff increases, and US markets have fallen almost 10 percent since their fall in August highs.

A Chinese foreign ministry spokesman told reporters that the discussion was positive tiv and the two leaders are optimistic about the solution The dispute over commercial practices and technology development has resulted in both sides charging punitive tariffs on each other's exports. Chinese state media have said in the meantime that Xi has promised Chinese entrepreneurs tax cuts to revive the cooling, state-dominated Chinese economy.

Not so fast: sustained turbulence?

But until clarity prevails In a trading business, investors should continue to frustrate, the CityIndex analyst Fiona Cincotta stated.

"A formal meeting between Trump and his Chinese counterpart will take place this month at the G-20 Summit and likely bring trade volatility on the market until both sides find a formal solution to trade issues," she wrote in a report research note.

In October, the milestone abruptly broke out in September and kicked off a six-month winning series for the S & P 500 benchmark index. Last month was the worst month for the market since September 2011.

Investors could stay on their feet until the trade dispute is resolved. Mr. Trump "is well known for having blown hot and cold before and during big negotiations, and a positive comment today could easily turn out to be flattering tomorrow," Cincotta said.

Other analysts were skeptical about the prospects for a China trade agreement. "President Trump's call for his cabinet to draft a" deal "with China is likely an attempt to support a market rally that will go into election on November 6, rather than an imminent one Breakthrough, "said Clayton of Capital Capital Allen on Friday in a note.

Jobs, Jobs, Jobs

The US Department of Labor said US employers continued to add jobs after a brief job in October, without the attitude slowing. The proportion of Americans with jobs is at its highest level since January 2009, and the monthly wage increase has been the largest ever since. Together with high consumer confidence, these are all good signs of economic growth and consumer spending over the coming months.

Bond prices dropped and yields rose sharply. The yield on the 10-year Treasury Note rose from 3.14 percent to 3.22 percent. An increase in interest rates last month triggered the downturn in the market, but investors on Friday were not so worried about the increase. "It was clearly a good report," said David Lefkowitz, Senior Equity Strategist Americas at UBS Global Wealth Management.

The level of wages was based on investor expectations, said Lefkowitz. This is important as investors continue to respond to signs of inflation and force the Federal Reserve to more aggressive interest rates. If inflation rises moderately, as it did in October, it is less likely.

Apple fired

Apple's sales in its last quarter and its estimates for the Christmas season disappointed the experts. The tech giant also surprised investors by stating that it would stop reporting the number of iPhones it sells each quarter. Apple was unique among the big smartphone makers when it said how many cell phones were sold and how high the average price was. Apple generates most of its revenue from iPhone sales, and has recently increased its profits by selling higher-priced models.

The unexpected change raised the suspicion that Apple was trying to hide a downturn in the phone's popularity. The company said quarterly figures and prices did not necessarily tell investors how strong the deal was.

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