US Stocks Ended August 11, 2017

 
Increased geopolitical tensions rattled stocks around the globe, sending the S&P 500 to its worst weekly performance since March. The Dow Jones Industrial Average lost 234 points for the week after President Donald Trump said the U.S. would respond to any further threats from North Korea "with fire and fury like the world has never seen." In addition to a decrease in risk tolerance by investors, there were a number of disappointing earnings results that added to this week's sell-off. Shares of Walt Disney Co. lost over 5% for the week after cable networks continued to disappoint the street as subscriber loss was greater-than-expected. In a defensive move, the entertainment company also announced the end of their partnership with Netflix Inc. as it looks for new ways to distribute its content outside of traditional paid television. Despite beating earnings by a wide margin, Priceline Group Inc. fell on disappointing guidance due to increased marketing spend to attract customers and below consensus room night growth. Both Macy's Inc., and Kohl's Corp. reported declining sales in the second quarter as fundamentals continue to deteriorate for traditional department stores. While this week's earnings were less than stellar, S&P 500 earnings are on pace to increase by over 10% for the second quarter with 91% of companies reporting. Looking ahead, tensions with North Korea will remain in the forefront of investors' minds. However, fundamentals are likely to drive returns long term.
Posted on Monday, August 14, 2017 @ 8:05 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.