US Stock Markets Ended September 7, 2018
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Stocks lost ground for the week, ending a three-week stretch of weekly gains, as technology stocks and trade fears drove markets lower. Internet stocks were especially weak within information technology on concern of tougher regulation, after Facebook Inc. and Twitter Inc. executives testified before Congress about their handling of election interference by Russia. Trade fears also continued to weigh on the market as a trade deal with Canada has yet to be resolved and businesses made a last-ditch effort to persuade President Trump to change course on a plan to enact tariffs on $200 billion of Chinese imports. Instead, the trade war with China intensified on Friday as President Trump told reporters he has identified an additional $267 billion in goods to be targeted by a potential new round of tariff measures. In economic news, nonfarm payrolls added 201K jobs in August and wages unexpectedly grew by 2.9%, the largest gain since 2009. In stock-specific news, shares of Tesla Inc. plummeted after news that Elon Musk smoked marijuana during a live-stream interview and two executives were leaving the company. Nike Inc. also sold-off after unveiling a controversial ad campaign with former NFL quarterback Colin Kaepernick. By contrast, shares of Lululemon Athletica surged following a strong quarterly announcement with comparable-store sales jumping 20%, driven by e-commerce sales. Cloudera, Inc., a pure-play on big data and machine learning, soared over 20% on strong quarterly results due to better-than-expected billings growth, a 33% jump in average selling price and higher guidance for the fiscal year. Looking ahead, investors will remain focused on any new trade deal developments with China and Canada. Additionally, August's Produce Price Index reading will be watched attentively for signs of pipeline inflation pressure after Friday's strong wage growth report increased the likelihood of more rates hikes.
Posted on Monday, September 10, 2018 @ 8:56 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.