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Stocks ended down Friday, erasing the morning's gains and short circuiting possible record-breaking highs, after China trade officials cut their visit to the U.S. short, putting a damper on hopes of resolving trade differences between the two nations anytime soon.
- The Dow Jones Industrial Average ended down Friday after China trade officials cut their visit to the U.S. short.
- Apple's (AAPL) - Get Report iPhone 11 went on sale around the world Friday, with analysts betting the new smartphone will be a key sales driver for the company heading into the key holiday season. Apple is Real Money's Stock of the Day. Shares ended down.
Wall Street Overview
The Dow Jones Industrial Average, falling for the second straight day, finished down 160 points, or 0.59%, to 26,935. The S&P 500 dropped 0.50%, while the Nasdaq slipped 0.61%. The Dow and the S&P 500 had been inching toward record highs when the news about the curtailed visit broke.
A report from Reuters cited the Montana Farm Bureau as saying China's trade delegation cancelled a farm trip to the state. Nicole Rolf, the Montana Farm Bureau Federation's director of national affairs, said there was no explanation why the group was cutting their trip short, CNBC said.
The latest development in the ongoing trade struggle between the two nations happened on the same day deputy trade leaders from both Washington and Beijing were concluding two-days of talks Friday, with discussions mostly focused on agriculture, as the world's two biggest economies were attempting to build more goodwill heading into next month's top-level negotiations in Beijing.
A group of Chinese trade officials, led by Vice Minister for Agriculture and Rural Affairs Han Jun, had tentatively planned on visits to Bozeman, Montana, and Omaha, Nebraska early next week.
U.S. Agriculture Department Secretary Sonny Perdue had said Thursday the farm visits are part of efforts to build goodwill between Washington and Beijing.
China has placed tariffs on and halted state purchases of U.S. agricultural products, but said last week that it will exclude imports of US soybeans, pork and other farm goods from additional trade war tariffs. China is the world's top buyer of soybeans and purchased about 60% of U.S. soybean exports last year.
The trip cancellations came just after the U.S.temporarily exempted more than 400 types of Chinese products from tariffs that President Donald Trump's administration imposed last year, CNBC said Friday, citing three documents that were published Friday by the Office of the U.S. Trade Representative.
The exclusions include things like Christmas tree lights, plastic straws, dog leashes and printed circuit boards, for a total of 437 types of products.
Trump on Friday said he doesn't think he needs to strike a trade deal with China before the 2020 presidential election, CNBC reported.
The Federal Reserve decision to cut U.S. rates Wednesday for the second time this year continued to reverberate. The 7-3 vote in favor of a rate cut of 25 basis points takes the target range to 1.75% to 2%. Two central bank officials voted against any cut in rates, while St. Louis Fed President James Bullard advocated for a larger easing of 50 basis points.
Bullard said Friday the U.S. manufacturing sector "already appears in recession" and overall economic growth is expected to slow "in the near horizon," according to Reuters.
Fed Vice Chairman Richard Clarida told CNBC Friday that the Fed is taking a meeting-by-meeting approach to setting interest rates and for now is not committed to a set course of action ahead.
Boston Fed President Eric Rosengren said the U.S. has weathered the trade and global slowdown and doesn't need lower interest rates.
The New York branch of the Federal Reserve added a further $75 billion in cash to clogged bank lending markets Friday, taking its four-day total to just more than $275 billion, as investors continue to debate the causes of this week's spike in short-term borrowing costs.
The New York Fed also outlined a schedule that would see it conduct daily repurchasing operations through Oct. 10, saying it would carry out daily overnight repos of up to $75 billion. After Oct. 10, the central bank said it would conduct repo operations as necessary.
Apple (AAPL) - Get Report shares finished down 1.5% to $217.73 as the tech giant's iPhone 11 went on sale around the world Friday, with analysts betting the new smartphone will be a key sales driver for the company heading into the key holiday season. Apple is Real Money's Stock of the Day.
Roku (ROKU) - Get Report fell 19.2% to $108.05 after Pivotal Research Group initiated coverage of the company with a sell recommendation amid a dramatic ramp-up in competition that it expects will drive the cost of add-on streaming devices like Roku to zero.
Oil prices were up amid ongoing tension in the Middle East following the drone attacks on two Saudi Arabian oil facilities. Trump on Friday said he has ordered sanctions on Iran's national bank at "the highest level."
Brent crude contracts were up 23 cents to $63.56 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were up 25 cents to $58.44 a barrel.
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