Here Are 3 Hot Things to Know About Stocks Right Now

Stocks closed out the last full week of the third quarter in the red on Friday following a report that said the White House was considering limiting investment in China, reigniting trade tensions between the world's two largest economies.

  • The Dow Jones Industrial Average dropped following a report that the White House was considering limiting investment in China.
  • Micron Technology (MU) - Get Report shares fell after the memory chip maker warned that near-term earnings would fall short of Wall Street forecasts as global demand continues to be affected by the U.S.-China trade dispute. Micron Technology is Real Money's Stock of the Day.
  • Wells Fargo (WFC) - Get Report shares climbed after the troubled financial institution named banking veteran Charles Scharf as CEO Friday, some six months after the resignation of Tim Sloan.

Wall Street Overview

The Dow Jones Industrial Average, which had been up about 130 points ahead of the report, finished down 80 points, or 0.3%, to 26,811. The S&P 500 fell 0.53% and the Nasdaq dropped 1.14%.

Microsoft (MSFT) - Get Report , Chevron (CVX) - Get Report , and Boeing (BA) - Get Report  lead the Dow's retreat.

Bloomberg reported that Trump administration officials were discussing ways to limit U.S. investors' portfolio flows into China. The move would have repercussions for billions of dollars in investment pegged to major indexes, Bloomberg said, citing people familiar with the internal deliberations.

The administration was considering such options as delisting Chinese companies from U.S. stock exchanges and limiting Americans' exposure to the Chinese market through government pension funds, Bloomberg reported.

American depositary receipts of China-based online retail giant Alibaba Group Holding (BABA) - Get Report were down 5.1% to $166.10 on reports of the administration's proposal, along with other major American depositary receipts.

"Markets are freaking out about this, and not because millions of U.S. pensioners have been lining up to invest in Alibaba or Tencent," said Ted Bauman, senior research analyst and economist at Banyan Hill Publishing. "It's because investors know that the main form of U.S. investment in China is direct, by major U.S. firms like Ford, GM, and other industrial giants. If the U.S. were to shut off U.S. investment in Chinese equities, the Chinese would surely retaliate against U.S. direct foreign investment. The smart money knows that the potential blowback for the U.S. stock market is immense, hence the panic."

Stocks had been rising earlier in the session after reports that the stalled U.S.-China trade talks are scheduled to resume Oct. 10 in Washington.

Chinese Vice Premier Liu He will be representing the delegation from Beijing when talks in Washington resume Oct. 10, people close to the talks told CNBC.

China's top diplomat, Wang Yi, who serves as China's state councilor and foreign minister, said China was willing to buy more U.S. goods, and said trade negotiations would yield results if both sides "take more enthusiastic measures" to show goodwill and reduce "pessimistic language" in their trade dispute.

Stocks had closed lower Thursday as Wall Street turned cautious after the release of a whistleblower complaint that has sparked an impeachment investigation of Trump added more volatility to markets.

Micron Technology (MU) - Get Report shares fell 11.1% to $43.21 after the memory chip maker warned that near-term earnings would fall short of Wall Street forecasts as global demand continues to be impacted by the U.S.-China trade dispute. Micron Technology is Real Money's Stock of the Day.

Shares of Emerson Electric (EMR) - Get Report were up 3.4% to $66.40 on news that D.E. Shaw has built a stake in the St. Louis, Missouri-based corporation and plans to push for a breakup of the company, the New York Times reported.

Wells Fargo (WFC) - Get Report shares climbed 3.8% to $50.71 after the troubled financial institution named banking veteran Charles Scharf as group CEO Friday, some six months after the resignation of Tim Sloan.

Shares of the self-propelling

Roomba vacuum cleaner

iRobot

(IRBT) - Get Report

zipped higher, rising 1% to $60.32 after analysts at Bank of America Merrill Lynch initiated coverage on the stock with a buy rating.

Las Vegas Sands (LVS) - Get Report  gained 2.2% to $57.11 after S&P Dow Jones said the casino-hotel and resort operator would be included in the S&P 500 index.

Peleton Interactive (PTON) - Get Report shares continued to fall, sliding 2% to $25.24, on the second day of trading as a public company.

Shares of Slack Technologies (WORK) - Get Report  fell, dropping 2.5% to $21.68, as the business technology software company struggles through a difficult few weeks.

Oil prices were falling after reports of a partial ceasefire between Saudi Arabia and Yemen. Brent crude contracts were down 80 cents to $60.94 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were down 58 cents to $55.83 a barrel.

In economic news, U.S. durable-goods orders increased 0.2% last month, the government said Friday. Economists had forecast a 0.7% decline.

The University of Michigan's final measurement of consumer sentiment came in at 93.2 for September, slightly above a preliminary estimate of 92.0 taken earlier in the month.

"The overall trends in the Sentiment Index remain quite favorable, but show signs of a slow erosion," wrote Richard Curtin, the survey's economist. "Despite the high levels of confidence, consumers have also expressed rising levels of economic uncertainty. Some of these concerns are rooted in partisanship, some due to conditions in the global economy (Brexit, Iran, Saudi Arabia, China), and some are tied to domestic economic policies."

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