Here Are 3 Hot Things to Know About Stocks Right Now
- Uber Technologies (UBER) broke its IPO, closing at $41.57 a share, more than $3 below its initial public offering price of $45.
- Apple (AAPL) declined in daily trading 2% as investors are worried that the world's biggest tech company could find itself a target of Beijing's reprisals to Trump's decision on tariffs.
- Marriott International (MAR) fell after posting stronger-than-expected first-quarter earnings as higher prices for worldwide hotel rooms offset flat revenue growth.
Wall Street Overview
Stocks ended green Friday, paring their losses as President Trump said trade talks with China will continue and hinted that the tariffs that had gone into effect at midnight "may or may not be removed."
Markets plummeted earlier in the day when the U.S. increased tariffs to 25% from 10% on $200 billion of Chinese products, but shares started to rebound as the White House made encouraging comments about trade negotiations.
The Dow Jones Industrial Average, which lost as much as 358 points, ended the day up 114 points, or 0.44%, to 25,942. The S&P 500 rose 0.37% and the Nasdaq climbed 0.08%. Both the S&P 500 and the Nasdaq had their worst week of 2019 following a string of closing highs the week before.
CNBC reported that U.S. trade talks with China ended Friday as Liu He, the top Chinese trade negotiator, left the Office of the U.S. Trade Representative. Treasury Secretary Steven Mnuchin said discussions about a possible trade agreement were "constructive."
On Friday afternoon, Trump tweeted that "the relationship between President Xi and myself remains a very strong one" and that conversations will continue.
"In the meantime," Trump said, "the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!"
Trump said earlier that the U.S. will boost its purchases of domestic farm products for humanitarian aid in an effort to offset lost demand from China for agricultural goods as trade tensions persist between the nations, Bloomberg reported.
"The increase in levies ... doesn't include goods in transit, so there is still a small window before they are properly imposed," said David Madden, a market analyst at CMC Markets UK, "and Mr Trump is lining up a 25% levy on the remaining $325 billion worth of imports. Washington, D.C., has turned up the heat on China, and they are letting Beijing know they are willing to take it up a notch if needed."
Uber Technologies (UBER) debuted on the New York Stock Exchange at $42 a share, below its $45 initial public offering price. Uber raised just over than $8 billion from its much-anticipated IPO that valued the ride-sharing company at $82.4 billion, against a volatile market backdrop and ongoing controversy over its business practices. Shares ended the day down 7.6% to $41.57.
Apple (AAPL) fell 1.4% to $197.18 as investors worried that the world's biggest tech company could find itself a target of Beijing's reprisals to Trump's decision on tariffs.
In economic news, the U.S. Labor Department said the Consumer Price Index increased 0.3% last month, boosted by rising gasoline, rents, and healthcare costs. The CPI gained 0.4% in March. Economists surveyed by FactSet expected inflation at the consumer level to rise 0.4% in April, steady with March.
"(Friday's) results show that perhaps soft inflation data isn't as transient as some may think," said Mike Loewengart, vice president of investment strategy with E*Trade Financial. "It suggests we still may very well be in this sweet spot-strong fundamentals and corporate earnings, and low inflation. I think what will be on a lot of investors' minds today is what this means in the context of trade. And really, this helps the administration be patient and perhaps even tougher when it comes to getting what it wants on the trade front."
Viacom (VIAB) posted stronger-than-expected second quarter earnings , but missed revenue forecasts as ad sales for the Comedy Central and MTV owner eased from last year's pace. Shares rose 2.6% to $29.25.
Wynn Resorts (WYNN) slipped 4.7% to $129.89 after the casino operator's first-quarter revenue missed analysts' forecasts. Shares fell earlier this week amid concerns that the company's operations in China will be hurt by the U.S.-China trade war.
Shares of GoPro (GPRO) fell after an initial gain, slipping 3.9% to $6.41 after the action camera company reported a narrower-than-expected first-quarter loss and raised its full-year revenue guidance.
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