Here Are 3 Hot Things to Know About Stocks Right Now
- The the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all set record closing highs Friday, even as President Donald Trump said he hasn't agreed to roll back tariffs on Chinese-made goods.
- Walt Disney (DIS - Get Report) climbed after the media giant beat Wall Street's fourth-quarter profit forecasts. Walt Disney is Real Money's Stock of the Day.
- Gap (GPS - Get Report) slumped after the clothing retailer slashed its full-year earnings forecast and said CEO Art Peck would be stepping down, putting its recent restructuring plans at risk.
Wall Street OverviewAll three major U.S. stock indexes ended at record highs Friday, even after President Donald Trump said he hasn't agreed to roll back tariffs on Chinese-made goods.
What President Trump said is not what the markets expect. But he said "the US hasn't agreed to a rollback of tariffs". It's not a flat denial. What's certain is that if there's no rollback of tariffs, there will be no phase 1deal. https://t.co/fJEKz9hEFi— Hu Xijin 胡锡进 (@HuXijin_GT) November 8, 2019
"Sentiment has cooled a little on Wall Street as Mr Trump tempered expectations regarding removing levies on Chinese imports," said CMC Markets analyst David Madden. "Dealers trimmed their equity positions as the Donald downplayed hopes of rolling back on all the tariffs, but he seemed to leave the option of a partial removal on the table, so traders aren't in full-on cut and run mode."
Reports Thursday said the U.S. and China had agreed to roll back tariffs on each other's goods in stages as trade negotiations continued. White House economic adviser Larry Kudlow confirmed the reports, telling Bloomberg that if "there's a 'phase one' trade deal, there are going to be tariff agreements and concessions."
Trade adviser Peter Navarro, however, told Fox Business: "There is no agreement at this time to remove any of the existing tariffs as a condition of the phase one deal and the only person who can make that decision is President Donald J. Trump and it's as simple as that."
Meanwhile, European Commission president Jean-Claude Juncker said Trump will not will not impose tariffs on European Union automotive goods next week as he had threatened.
"Trump will ruffle a bit, but there will not be any automobile tariffs," Juncker said in an interview with the German newspaper Suddeutsche Zeitung. "He won't do it. You're talking to a fully informed man."
Activision Blizzard (ATVI - Get Report) dipped slightly to $54.30 after the video game maker indicated softer current quarter revenue guidance that overshadowed stronger-than-expected earnings for the three months ending in September.
In economic news, the consumer sentiment index was 95.7, up slightly from 95.5 in October, the University of Michigan said. Economists had been forecasting a reading of 95.3.
"Although consumers have become somewhat more cautious spenders, they see no reason to engage in the type of retrenchment that causes recessions," said Richard Curtin, the surveys of consumers chief economist.
Wholesale inventories fell 0.4% in September, instead of the previously reported 0.3% decline, after having risen 0.1% in August. Inventories were up 4.8% on a year-on-year basis in September. The decline in September was the largest since October 2017.