Wall Street’s major averages surrendered modest midday gains and closed lower for a second day after the ouster of President Donald Trump’s controversial chief strategist Steve Bannon failed to compensate for lingering concerns about the fate of Trump’s pro-growth agenda and tensions with North Korea.
And after a tumultuous week which saw the blue chip index endure its largest one-day decline since May, the Dow Jones Industrial Average and S&P 500 both closed lower for a second week, while the Nasdaq was lower for a fourth week in a row with a loss of 0.60%.
Stocks were sitting on the fence for most of the day as investors weighed the events in Spain with worries that Trump’s chief economic advisor and pro-business advocate Gary Cohn would leave the White House over conflicts with Bannon. The news of Bannon’s ouster was greeted positively by shell-shocked investors, but failed to alleviate the concern over the risk of war with North Korea. Losses accelerated into the close in the wake of a tweet from Bannon’s Breitbart News — #WAR — that hinted at an adversarial relationship with the White House.
Economic data was positive as the preliminary Univ of Michigan consumer sentiment index climbed to a 7-month high of 97.6, beating expectations to rise slightly to 94.0 from July’s 93.4.
Earnings were mixed with shares of Foot Locker ( FL ) falling to their lowest level in more than three years after reporting a substantial decline in same store sales, while Ross Stores ( ROST ) and Gap ( GPS ) both beat Wall Street’s expectations.
Here’s where the markets stood at the close:
Dow Jones Industrial Index was down 76.22 points (-0.35%)
S&P 500 was down 4.46 points (-0.18%)
Nasdaq Composite Index was down 5.39 points (-0.09%)
FTSE 100 was down 0.86%
Nikkei 225 was down 1.18%
Hang Seng Index was down 1.08%
Shanghai China Composite Index was up 0.01%
(+) SPWH (+25.43%) Q2 results beat Wall Street’s expectations
(+) ROST (+10.67%) Reported better-than-expected sales and earnings
(+) CPN (+10.52%) Agreed to be acquired for $15.25 per share by an investor group led by Energy Capital Partners
(-) FL (-27.92%) Missed EPS and sales estimates, comparable store sales missed guidance
(-) DE Beat (-5.43%) Q3 estimates, but farm sales outlook disappointed, downgraded at Baird
(-) HIBB (-5.22%) Q2 loss narrowed on below consensus revenue, lowered FY EPS guidance
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