Proactive Investors - Run By Investors For Investors
Markets

US markets finish February on a low note but see gains for the month

Tesla shares dipped in extended trading after the Model 3 news before being halted
Statue of Washington on Wall Street
All three US indices finished February with 3% gains or better

US equities may have turned lower Thursday, but saw gains overall for the month. The Dow Jones Industrial Average slipped 69 points to 25916, while the S&P 500 dipped nearly 8 points lower to close at 2784.5. The Nasdaq lost 22 points to 7532.5.

All three indices finished February with 3% gains or better.

Meanwhile, the small-cap-centric Russell 2000 finished 5.5 points lower to 1575.5, having crossed into positive territory briefly intraday.

Investors digested the news that talks between President Donald Trump and North Korean head Kim Jong Un had broken down, which overshadowed US economic data that beat estimates.

President Donald Trump abruptly ended the North Korean nuclear summit in Vietnam after North Korea’s leader demanded the lifting of US sanctions, but wouldn’t give up his full nuclear armament.

The sudden end to the summit cast a shadow on a Bureau of Economic Analysis report which says the US economy grew at an annualized rate of 2.6% in the fourth quarter, a faster rate than the 2.2% forecast by analysts.

Meanwhile, investors eagerly awaiting news from Tesla Inc (NASDAQ:TSLA) were rewarded with word that the electric-car maker is finally rolling out a mass-market Model 3 starting at $35,000. CEO Elon Musk teased a tweet Thursday creating speculation of what could be in store. But the news didn't electrify the shares, which dipped nearly 1% to $317 in extended trading before being halted.

Canadian stocks told two stories Thursday. The TSX finished the day 0.5% lower to 15999 in Toronto, while the Venture exchange saw a gain of 0.5% to 623.5.

1:29 pm: US stocks trade lower after scrapping of US-North Korea summit

The Dow Jones Industrial Average and the S&P 500 fell in afternoon trade Thursday as the scrapping of talks between President Donald Trump and North Korean head Kim Jong Un overshadowed US economic data that beat estimates.

President Donald Trump abruptly ended the North Korean nuclear summit in Vietnam after North Korea’s leader demanded the lifting of US sanctions, but wouldn’t give up his full nuclear armament.

The sudden end to the summit cast a shadow on a Bureau of Economic Analysis report which says the US economy grew at an annualized rate of 2.6% in the fourth quarter, a faster rate than the 2.2% forecast by analysts.

At the time of writing, the Dow dropped 0.12% or almost 32 points to 25,954, led lower by UnitedHealth Group, DowDuPont and Caterpillar Inc.

An 18.6% nose dive in shares of HP Inc, which dropped to $19.43, also weighed on the S&P 500, which slipped 0.01% to 2,792. The computer maker reported that its first-quarter net income came in at $803 million, down from $1.94 billion in the year-ago quarter, due to a slowdown in sales of computers and printers.Its sales missed Wall Street's estimates at $14.7 billion.

Elsewhere, the tech-laden Nasdaq clawed into the green and added 0.08% to hit 7,560, lifted by Monster Beverage Corp, JD.com, Take-Two Interactive Software and Kraft Heinz.

The Russell 2000 index of small-cap stocks also flirted with going positive, losing just 0.15 points to hit 1,580.

Up in Canada, Toronto’s TSX shed 67 points to 16,006, as the country's financial stocks took a tumble after a disappointing quarterly earnings report by Toronto-Dominion Bank.

10:00 am: Wall Street opens lower as US economy slows in fourth quarter

Wall Street opened lower Thursday after a reading of fourth-quarter GDP came in weaker than previous readings but hotter than Wall Street estimates.

The Commerce Department's estimate of fourth-quarter GDP growth showed the US economy growing at a rate of 2.6%. 

The Dow Jones Industrial Average fell 13.46 points or 0.05% to 25,971.70, led lower by DowDuPoint Inc, Caterpillar and Chevron Corp.

Meanwhile, the S&P 500 was also in the red, hovering at 2,787.10, led lower by HP Inc, Celgene and Brighthouse Financial.

The Nasdaq Composite index which was down 29.66 points tried to claw into the green and was hovering at 7,524.85

Elsewhere, the Russell 2000 index of small-cap stocks traded flat at 1,571.43.

7:15 am: Wall Street futures lower as US-North Korea summit breaks down

Wall Street shares are set for a lower start Thursday after a weak Asian session post-data and as talks between the US and North Korea came to an abrupt end.

Yesterday, comments from US Trade Representative Robert Lighthizer and Federal Reserve Chair Jerome Powell about the challenges of talks on a potential trade pact with China weighed on stocks.

The Dow Jones Industrial Average closed down around 72 at 25,985, while the S&P 500 lost about 1.5 to 2,792. The tech-heavy Nasdaq exchange gained around five points at 7,554.

In futures trade today, the Dow Jones is off 47 points; the Nasdaq shed around 28 and the S&P 500 futures are down around seven points.

In Asia overnight, the Nikkei 225 in Japan tanked 171 points, while China's Shanghai Composite Index lost nearly 13 at 2,940.

The falls come as survey data published by the People's Republic showed the country's manufacturing sector weakened again this month, which weighed on sentiment while the collapse of nuclear talks between President Trump and North Korean leader Kim Jong Un didn't help.

In European indices, the FTSE 100 is down around 36 points at 7,070, while the German DAX is off nearly 20 at 11,467.

"US index futures had held relatively steady overnight, but news shortly ahead of the European session that the US – North Korea summit had broken down without a conclusion served to unsettle markets, at least a little," said market analyst James Hughes at Axitrader.


Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use