Close Update: Wall Street Regains Composure After Flynn-Related Selling Frenzy

Close Update: Wall Street Regains Composure After Flynn-Related Selling Frenzy

Stocks clawed back most of Friday’s early losses but still ended the day modestly lower after developments from Robert Mueller’s investigation into the 2016 presidential campaign triggered a selling frenzy across Wall Street. After being down by nearly 400 points, the Dow snapped back after the Democrats lost a vote to send the tax reform package back to committee, but still ended Friday in the red for the first time in six days.

At the end of trading for the week, the Dow was up 3.2% from last week. The S&P 500 up 1.5% on the week, but the Nasdaq was down 0.6% from last Friday’s close.

Fresh off Thursday’s impressive rally, the major market averages were struggling to stay positive at the open after the GOP tax bill stalled in the Senate and soft manufacturing data weighed on Wall Street. The Dow and S&P 500 were beginning to gain traction before the news surrounding former national security advisor Michael Flynn put the brakes on any chance for another higher close.

Flynn made a deal with special counsel Robert Mueller to provide information about Russian involvement with President Donald Trump’s campaign during the 2016 presidential race, sending shock waves throughout Wall Street and nearly wiping out all of Thursday’s gains.

After the news broke, investors poured into safe havens with the correction in equities exacerbated by the shortage of short positions. The flight-to-safety drove gold higher and the yield on the 10-year note down by as much as 8 basis points. The dollar plunged to 111.40 support against the yen before selling subsided.

Here’s where the markets stood at the close:

US MARKETS

Dow Jones Industrial Index was down 40.76 points (-0.17%)

S&P 500 was down 5.36 points (-0.20%)

Nasdaq Composite Index was down 26.39 points (-0.38%)

GLOBAL SENTIMENT

FTSE 100 was down 0.36%

Nikkei 225 was up 0.41%

Hang Seng Index was down 0.35%

Shanghai China Composite Index was up 0.02%

UPSIDE MOVERS

(+) AMWD (+28.21%) Reported better-than-expected Q3 EPS, but missed revenue estimates

(+) FMI (+17.67%) FDA approved FoundationOne CDx diagnostic test for solid tumors

(+) AMBA (+14.30%) Reported better-than-expected Q3 results

(+) APRN (+8.03%) Appointed a new CEO

DOWNSIDE MOVERS

(-) GCO (-17.85%) Q3 sales and profit misses expectations

(-) MTSL (-11.65%) Q3 sales were down from year ago, quarterly loss narrowed

(-) ULTA (-4.12%) Reported slower Q3 comparable sales and decline in gross margin

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