Technology Companies Lead Slide in US Markets; Oil Rising

U.S. stocks fell sharply Friday, erasing an early gain, as the market closed in on its third weekly decline in four weeks.

Losses in technology and health care stocks outweighed gains elsewhere in the market. Energy companies led the gainers as crude oil prices rose on news that OPEC members agreed to cut production next year.

The government said job growth in November fell short of economists’ expectations.

Keeping score: The S&P 500 index fell 41 points, or 1.5 percent, to 2,654 as of 11:25 a.m. Eastern Time. The Dow Jones Industrial Average dropped 411 points, or 1.7 percent, to 24,536. The Nasdaq composite slid 135 points, or 1.9 percent, to 7,053. The Russell 2000 index of small-company stocks slipped 4 points, or 0.3 percent, to 1,473.

Energy: Oil prices rose after OPEC countries agreed to reduce global oil production by 1.2 million barrels a day for six months, beginning in January. The move would include a reduction of 800,000 barrels per day from OPEC countries and 400,000 barrels per day from Russia and other non-OPEC nations. The news, which had been widely anticipated, pushed crude oil prices higher.

U.S. benchmark crude jumped 4.8 percent to $53.94 a barrel in New York. Brent crude, used to price international oils, gained 5.4 percent to $63.33 a barrel in London.

The pickup in oil prices sent energy stocks higher. Anadarko Petroleum gained 3.3 percent to $53.30.

Tech slide: A sell-off in technology stocks weighed on the market. Hewlett Packard Enterprise slumped 7.3 percent to $14.85.

Call a doctor: Health care sector stocks, the biggest gainer in the S&P 500 this year, took some of the heaviest losses. Cooper lost 7.8 percent to $255.12

Not so pretty: Ulta Beauty slid 9.6 percent to $264.74 after the cosmetics retailer’s latest quarterly report card

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Dire Indicators Signal a Stock Market Correction Is on the Way

iStock.com/Paperkites Stock Market at a Dangerous Crossroads

It has become increasingly frustrating to witness the resurfacing of selling capitulation in the stock market in what has so far been a hazardous year for bulls.

But while I’m not ready to throw in the towel and accept that the bulls are losing steam, I do feel the easy money in the stock market has already run its course.

We could see another year or so of upside moves in the stock market, but the increased macro uncertainties will surely make it difficult to not want to give in.

Here’s what is at stake at this time:

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China Deal or No Deal Yield Curve Inversion Tariff War

The stock market applauded after President Donald Trump and President Xi Jinping decided on a trade war ceasefire at the G20 meetings.

The problem is there was a lack of details on the actual agreement. Trump subsequently admitted there was no formal deal except a 90-day window for negotiations between the world’s two biggest economies.

….I am a Tariff Man. When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power. We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN

— Donald J. Trump (@realDonaldTrump) December 4, 2018

Trump later referred to himself as a “Tariff Man” and the stock market grew despondent and threw up. The Dow cratered around 1,600 points on Tuesday, December 4 and its low point on Thursday, December 6. The Nasdaq broke below 7,000 intraday on Thursday.

Chart courtesy of StockCharts.com

But the tariffs don’t appear to be working as the U.S. trade deficit with

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Stock-market index futures pivot higher after jobs figures show signs of cooling

Futures for U.S. stock benchmarks on Friday turned decidedly higher after a key reading of domestic employment came in weaker than expected, at least on a headline basis. U.S. nonfarm payrolls increased a seasonally adjusted 155,000 last month, the Labor Department reported. The unemployment rate held steady at 3.7%, hanging near the lowest rate since 1969. Year-over-year wage growth matched the prior month’s 3.1% pace as the best rate since 2009. The data is a closely watched amid the Federal Reserve’s plan to normalize interest rates after the 2007-’09 financial crisis. Although some softness in the data following last month’s figures aren’t likely to dissuade the central bank from not lifting benchmark interest rates, currently at a range between 2% and 2.25%, a quarter-of-a-basis-point higher at the conclusion of its two-day meeting on Dec. 19, it may give policy makers, led by Chairman Jerome Powell, some pause in increasing rates in 2019. Futures for the Dow Jones Industrial Average YMZ8, -1.90% were up 32 points, or 0.1%, at 24,937, those for the S&P 500 index ESZ8, -2.02% edged 0.1% up at 2,693, while those for the Nasdaq-100 NQZ8, -2.83% were flat at 6,823. All three index futures were trading lower prior to the report, after the Dow DJIA, -2.24% and S&P 500 SPX, -2.33% ended in negative territory on Thursday, while the Nasdaq Composite Index COMP, -3.05% produced a 0.4% gain, in a tumultuous session.

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These stocks suffered the biggest losses of the week

Friday was another dismal day for U.S. stock investors, as the broad indexes suffered a third straight day of losses that, combined, topped 5%.

The Dow Jones Industrial Average DJIA, -2.24%  declined nearly 559 points, or 2.2%, on Friday to close out the week at 24,288.95, while the S&P 500 index SPX, -2.33%  was down 2.3% and the Nasdaq Composite Index COMP, -3.05%  fell 3.1%.

Here’s how all three indexes have performed over the past week and for all of 2018:

Index Price change – one week through Dec. 7 Price change – 2018 through Dec. 7 Dow Jones Industrial Average -4.5% -1.3% S&P 500 index -4.6% -1.5% Nasdaq Composite Index -4.9% 1.0% Source: FactSet

This was the worst week for the Dow since March, as investors continued to show concern over trade relations with China. The Labor Department’s “uninspiring” employment report for November showed a slowing of job creation, although the unemployment rate held steady at 3.7%.

Read: Tim Mullaney says now we know how much Trump’s trade war has cost your portfolio

All 30 stocks in the Dow Jones Industrial Average were down for the week, with Caterpillar topping the list:

Company Ticker Price change – One week through Dec. 7 Price change – Dec. 7 Price change – 2018 through Dec. 3 Price change – 2017 Caterpillar Inc. CAT, -3.75% -8.9% -3.8% -21.6% 69.9% JPMorgan Chase & Co. JPM, -1.81% -7.1% -1.8% -3.4% 23.9% DowDuPont Inc. DWDP, -3.88%   -7.1% -3.9% -24.5% 24.5% Boeing Co. BA, -2.62% -6.8% -2.6% 9.6% 89.4% Intel Corp. INT, -1.24% -6.2% -4.4% 0.2% 27.3% Goldman Sachs Group Inc. GS, -2.40% -5.8% -2.4% -29.5% 6.4% Apple Inc. AAPL, -3.57% -5.7% -3.6% -0.4% 46.1% Microsoft Corp. MSFT, -4.00% -5.5% -4.0% 22.5% 37.7% Travelers Cos. Inc. TRV, -0.87% -5.2% -1.5% -8.9% 10.8% Pfizer Inc. PFE,

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Stocks plunge on growth concerns, trade tensions

The Dow Jones Industrial Average shed over 500 points Friday, bringing its decline in the abbreviated trading week to over 1,000

A trader works on the floor of the New York Stock Exchange. Richard Drew/AP Photo

U.S. stocks plunged, capping the worst week for the S&P 500 Index since March, as the Trump administration pressed its trade war with China and the latest batch of economic data added to concern that growth has peaked. Oil rose after OPEC agreed to cut output.

The Dow Jones Industrial Average shed over 500 points Friday, bringing its decline in the abbreviated trading week to over 1,000. The S&P finished the week down 4.6 per cent. The trade outlook appeared to take a negative turn after Huawei Technologies’s chief financial officer was charged with conspiracy and the U.S. alleged the company violated sanctions. The Federal Reserve’s Lael Brainard struck a hawkish tone in comments at a conference.

“What we think is going on is a repricing of growth,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “The bond market is essentially saying we don’t see the kind of growth that we’ve had. So what the market is doing is repricing stocks, particularly those that have performed extraordinarily well, to a lower growth rate.”

Stocks had opened higher after the November jobs report showed moderation in the labor market, giving succor to proponents for a slower pace of Fed interest-rate increases. Treasuries fluctuated on the data before settling higher as risk aversion increased. The dollar fell.

U.S. payrolls and wages rose by less than forecast in November while the unemployment rate held at the lowest in almost five decades. The report comes with financial markets on edge over whether Fed Chair Jerome Powell is closer to pausing. Market-implied U.S. rate

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Toronto stock index, New York indices fall amid continued volatility

TORONTO — Major North American indices experienced steep drops Friday amid continued volatility.

The S&P/TSX composite index retreated 141.87 points to 14,795.13 despite being in positive territory earlier in the day.

In New York, the Dow Jones industrial average plunged 558.72 points to 24,388.95. The S&P 500 index shed 62.87 points to 2,633.08 while the Nasdaq composite fell 219.01 points to 6,969.25.

The Canadian dollar traded at 75.19 cents US compared with an average of 74.60 cents US on Thursday.

The January crude contract rose US$1.12 to US$52.61 per barrel and the January natural gas contract increased 16 cents to roughly US$4.49 per mmBTU.

The February gold contract gained US$9.00 to US$1,252.60 and the March copper contract advanced nearly two cents to about US$2.76 a pound.

Index and currency in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press

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Dow plunges for third straight day on weak jobs report and renewed trade tensions

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Dec. 7, 2018 / 9:10 PM GMT

By Lucy Bayly

The Dow Jones Industrial Average dropped by 558 points on Friday, capping a wild week of trading that saw the blue-chip index lose close to 5 percent of its value. It was the worst week for the Dow since March, and erased all gains for the year.

The Dow started the day with a spike of 150 points after the Department of Labor released a generally tepid jobs report, only to plummet by mid-afternoon to a session low of 662 points down as markets continued to absorb the destabilizing impact of President Donald Trump’s protectionist trade policies.

The broader S&P 500 lost 2.3 percent of its value, and a tech sell-off fueled a drop of 3 percent on the Nasdaq composite index. Tech giants Alphabet and Apple both lost all of their gains for the year. Apple’s share price has been steadily falling after a litany of analysts cut their price targets for the smartphone maker amid concern over waning demand for the iPhone.

Dec. 7, 201802:28

The market also hiccuped after St. Louis Federal Reserve President James Bullard suggested the central bank should not introduce a rate hike in December — the first to publicly make such a pronouncement. Bullard cited the inverted yield curve, a phenomenon that many see as indicative of an impending recession.

Even a production cut agreement by OPEC and an ensuing spike in oil prices failed to buoy markets. The oil cartel concluded its two-day meeting Friday with a deal — including non-member Russia — to curb output by a total of 1.2 million barrels

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Stocks plunge on growth concern, trade tension

U.S. STOCKS TUMBLED FRIDAY, capping the worst week for the S&P 500 Index since March. / BLOOMBERG NEWS FILE PHOTO/OILAI SHEN

NEW YORK – United States stocks plunged, capping the worst week for the S&P 500 Index since March, as the Trump administration pressed its trade war with China and the latest batch of economic data added to concern that growth has peaked. Oil rose after OPEC agreed to cut output.

The Dow Jones Industrial Average shed over 500 points Friday, bringing its decline in the abbreviated trading week to over 1,000. The S&P finished the week down 4.6 percent. The trade outlook appeared to take a negative turn after Huawei Technologies’s chief financial officer was charged with conspiracy and the U.S. alleged the company violated sanctions. The Federal Reserve’s Lael Brainard struck a hawkish tone in comments at a conference.

“What we think is going on is a repricing of growth,” said Ernie Cecilia, chief investment officer at Bryn Mawr Trust Co. “The bond market is essentially saying we don’t see the kind of growth that we’ve had. So what the market is doing is repricing stocks, particularly those that have performed extraordinarily well, to a lower growth rate.”

Nvidia and Advanced Micro Devise tumbled more than 6 percent as chipmakers cratered. Utilities were the only S&P 500 group to rise. Interest-rate futures put the probability of a Federal Reserve rate increase at its Dec. 18-19 meeting above 70 percent Netflix, Amazon and Alphabet sank at least 3 percent to lead losses among megacap tech shares.

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Stocks had opened higher after the November jobs report showed moderation in the labor market, giving succor to proponents for a slower pace of Fed interest-rate increases. Treasuries fluctuated on the data before settling higher as risk aversion increased.

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Dow closes down 550 points as stocks post biggest weekly fall since March

U.S. stocks closed sharply lower on Friday as a lack of concrete progress toward reducing U.S-China trade tensions bolstered risk-off sentiment and overshadowed the November employment report.

Benchmarks

The Dow Jones Industrial Average DJIA, -2.24%  fell 558.72 points, or 2.2%, to close at 24,388.95, the S&P 500 index SPX, -2.33% retreated 62.87 points, or 2.3%, to 2,633.08, while the Nasdaq Composite Index COMP, -3.05% slumped 219.01 points, or 3%, to finish at 6,969.25.

Ten of 11 sectors in the S&P 500 lost ground Friday, with only utilities advancing, while all 30 components of the Dow traded lower.

Check out: A death cross for the S&P 500 highlights a stock market in tatters

For the week, the Dow fell 4.5%, the S&P 500 retreated 4.6%, and Nasdaq tumbled 4.9%. It was the biggest weekly percentage decline for all three benchmarks since March, while also marking the worst start to a December since 2008, according to Dow Jones Market Data.

The slump pushed the S&P 500 and Dow back into negative territory for 2018, while the Nasdaq is clinging to a 1% year-to-date gain.

Market drivers

Concerns over global trade continue to weigh on investor sentiment, even after a Friday morning report from the Labor Department that showed healthy November job gains for the U.S. economy and the fastest pace of wage growth in nearly 10 years.

Despite efforts by the Trump administration and its Chinese counterparts to paint an optimistic picture of ongoing negotiations aimed at reducing trade tensions, investors are demanding more evidence that the two sides will avoid the imposition of new and expanded tariffs in 2019, market participants say. Once again, a pair of administration officials gave opposing views about those negotiations in separate television appearances Friday.

The effect of trade concerns on the markets can be observed

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U.S. stocks lower at close of trade; Dow Jones Industrial Average down 2.24%

© Reuters. U.S. stocks lower at close of trade; Dow Jones Industrial Average down 2.24%

Investing.com – U.S. stocks were lower after the close on Friday, as losses in the , and sectors led shares lower.

At the close in NYSE, the fell 2.24%, while the index lost 2.33%, and the index lost 3.05%.

The best performers of the session on the were Johnson & Johnson (NYSE:), which fell 0.33% or 0.48 points to trade at 145.43 at the close. Meanwhile, Chevron Corp (NYSE:) fell 0.36% or 0.42 points to end at 115.49 and Coca-Cola Company (NYSE:) was down 0.59% or 0.29 points to 49.09 in late trade.

The worst performers of the session were Intel Corporation (NASDAQ:), which fell 4.40% or 2.13 points to trade at 46.24 at the close. Cisco Systems Inc (NASDAQ:) declined 4.03% or 1.95 points to end at 46.44 and Microsoft Corporation (NASDAQ:) was down 4.00% or 4.37 points to 104.82.

The top performers on the S&P 500 were PPL Corporation (NYSE:) which rose 2.81% to 31.09, EQT Corporation (NYSE:) which was up 2.33% to settle at 18.41 and Newmont Mining Corporation (NYSE:) which gained 2.24% to close at 33.39.

The worst performers were Ulta Beauty Inc (NASDAQ:) which was down 13.13% to 254.47 in late trade, Cooper Companies Inc (NYSE:) which lost 12.28% to settle at 243.01 and American Airlines Group (NASDAQ:) which was down 9.12% to 33.57 at the close.

The top performers on the NASDAQ Composite were Domo Inc (NASDAQ:) which rose 30.52% to 20.40, Uxin Ltd (NASDAQ:) which was up 24.47% to settle at 4.68 and Cronos Group Inc (NASDAQ:) which gained 21.72% to close at 12.7200.

The worst performers were Viveve Medical Inc (NASDAQ:) which was down 27.42% to 1.3500 in late trade, United Natural Foods Inc (NASDAQ:) which

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