© Reuters. Traders work on the floor at the NYSE in New York
By Stephen Culp
NEW YORK (Reuters) – Wall Street struggled for gains in an up-and-down session on Friday as mixed headlines on trade dampened positive consumer sentiment data, sending investors into the weekend with little enthusiasm.
The Dow inched up, while the Nasdaq lost ground and the bellwether was nominally lower, hovering more than 2% below its record high reached on April 30. All three were on course for their second successive weekly declines after failing to fully recover from Monday’s steep sell-off.
China added fuel to the fire of the increasingly rancorous trade war with the United States with a defiant front-page commentary on the Communist Party’s People’s Daily, ratcheting up tensions the day after U.S. President Donald Trump officially blacklisted Chinese telecom Huawei Technologies Co Ltd from doing business with U.S. companies.
Elsewhere in the multi-front U.S. tariff war, Trump confirmed he would delay imposing imported auto tariffs by as much as six months, and agreed to lift metal tariffs on Canada and Mexico.
Consumer sentiment jumped 5.3% in May to its highest reading in 15 years, according to the University of Michigan’s consumer sentiment index. However, “the gains were recorded mostly before the trade negotiations with China collapsed and China responded with their own tariff,” the university said.
“While the headlines are about trade the movement is more about global growth than those headlines,” said Oliver Pursche, vice chairman and chief market strategist at Bruderman Asset Management in New York.
Tariff jitters dragged on key industrial shares.
Farm equipment maker Deere & Co was the biggest percentage loser on the S&P 500, dipping 6.4% after cutting its full-year forecast.
Caterpillar Inc (NYSE:), 3M (NYSE:) Co, Textron (NYSE:), General Dynamics (NYSE:) and Fedex Corp all