Market Commentary - Foreign Markets
Stocks saw mixed movement as Nasdaq rose 0.5%, but FedEx, Nike, and Micron tumbled. Steel and housing stocks weakened while software and hardware gained.
The tech-heavy Nasdaq saw a notable advance up by 92.43 points(0.5%) at 17,784.05. The Dow inched up 32.03 points(0.1%) to 41,985.35 and the S&P 500 crept up 4.67 points (0.1%) to 5,667.56.
However, Trump said during the same remarks in the Oval Office that providing exceptions for one country means you have to do that for all, furthering the uncertainty about his plans. While the broader markets rebound, shares of FedEx (FDX) remained sharply lower, with the delivery giant plunging by 6.5% on the day. The slump by FedEx came after the company reported slightly weaker than expected fiscal third quarter earnings and lowered its full-year earnings guidance due to continued weakness and uncertainty in the U.S. industrial economy.
Dow component Nike (NKE) also tumbled by 5.5% after the athletic apparel and footwear giant reported fiscal third quarter results that beat estimates but forecast a decrease in sales in the current quarter. Chipmaker Micron Technology (MU) also plummeted by 8% even though the company reported better than expected fiscal second quarter results and provided upbeat guidance.
Steel stocks were significantly weak, with the NYSE Arca Steel Index tumbling by 2.2%. Housing stocks too were considerably weak as reflected by the 2.0% slump by the Philadelphia Housing Sector Index. Homebuilder Lennar (LEN) climbed well off its worst levels but still closed down by 4.0% after reporting better than expected fiscal first quarter results. Gold, commercial real estate and semiconductor stocks were notably weak while software and computer hardware stocks emerged strong.
Asia-Pacific stocks ended mixed on Friday. Hong Kong's Hang Seng Index plunged by 2.2% and China's Shanghai Composite Index slumped by 1.2%, while stocks in Japan, South Korea and Australia moved modestly higher. the major European markets all moved to the downside on the day. While the German DAX Index fell by 0.5%, the French CAC 40 Index and the U.K.'s FTSE 100 Index both slid by 0.6%.
In the bond market, treasuries moved modestly lower over the course of the session after seeing initial strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose 1.9 bps to 4.25% after hitting a low of 4.20%.
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