STREAMING NOW: Watch Now

Stocks: Apple's weak outlook trumps hopes about China trade and a strong jobs report

Stocks fell on another volatile day Friday as hopes for a US-China trade deal and a solid jobs report initia...

Posted: Nov 3, 2018 9:04 AM
Updated: Nov 3, 2018 9:04 AM

Stocks fell on another volatile day Friday as hopes for a US-China trade deal and a solid jobs report initially pushed the Dow higher but weren't enough to offset concerns about a lackluster holiday outlook from Apple.

The Dow dropped 110 points, or 0.4%. It had been down as much as 300 points earlier in the day. The S&P 500 finished Friday with a 0.6% loss as well.

Banking, finance and investments

Business, economy and trade

Financial markets and investing

Securities trading

Stock markets

Apple Inc

Asia

China

Companies

Company activities and management

Company earnings

Continents and regions

East Asia

Financial performance and reports

Financial results

Government and public administration

Government bodies and offices

Labor and employment

Labor sector performance

Politics

US federal government

White House

International trade

Trade and development

Economic indicators

Economy and economic indicators

Stock indexes

But the Dow, S&P 500 and Nasdaq still all ended the week with gains of more than 2%.

Stocks rallied overseas after Bloomberg reported that President Donald Trump was asking cabinet members to begin drafting a possible trade deal with China. The Dow was up nearly 200 points Friday morning on that report too.

But Trump's National Economic Council director Larry Kudlow debunked that story on CNBC Friday, saying that "there's no massive movement" to do a deal with China.

Despite the conflicting reports about US trade talks with China, there was some good news from Washington — the strong October jobs report.

The US economy added 250,000 jobs last month and the unemployment rate held steady at 3.7%, the lowest level in nearly half a century. American workers had more good news too. Wages rose 3.1% from a year ago.

The uptick in wage growth may eventually spark more fears that the Federal Reserve will raise rates more aggressively in order to fight inflation. But investors seemed to be shrugging off those concerns Friday. Bond yields rose only slightly after the jobs report.

Tony Bedikian, managing director and head of global markets for Citizens Bank, said the jobs numbers were a "home run" and that he thinks investors are now looking at higher wages as a plus instead of fearing what they might mean for Fed rate hikes.

"The market is anticipating steady wage gains. They are healthy. Workers are able to spend more because they have more in their pocket," Bedikian said. "It's hard to find red flags in the jobs numbers."

In corporate news, the tech-heavy Nasdaq ended the day down 1%. That was largely due to the fact that Apple (AAPL) — which is also one of the Dow's biggest components — fell nearly 7% following its latest earnings report. Apple issued a somewhat tepid outlook for the next few months.

Chinese e-commerce giant Alibaba (BABA) dipped more than 2% despite beating earnings forecasts. But the company lowered its outlook for 2019, citing the uncertain state of the global economy.

WW (WTW), formerly known as Weight Watchers, plunged 30% after reporting it's losing subscribers. GoPro (GRPO) plummeted 24% on a poor holiday season forecast. And GE (GE) continued its slide, falling 3%.

Still, other blue chip companies reported strong results. Oil giants Exxon Mobil (XOM) and Chevron (CVX) both rose after posting solid gains in profit that topped Wall Street's forecasts.

And coffee king Starbucks (SBUX) soared 10% after it reported strong sales and earnings after the market closed Thursday.

But not all consumer companies were doing well. Macaroni and cheese and ketchup giant Kraft Heinz (KHC), which is a big stock holding of Warren Buffett's Berkshire Hathaway (BRKB), plunged 10% as its earnings were lower than expected.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 74119

Reported Deaths: 905
CountyCasesDeaths
Multnomah17242236
Washington10347101
Marion9207140
Clackamas616077
Umatilla434349
Lane430942
Jackson382531
Malheur240644
Deschutes236815
Yamhill172916
Linn142423
Polk125016
Douglas93018
Klamath8724
Jefferson83411
Benton7917
Union7826
Morrow6587
Lincoln62215
Josephine5374
Wasco53019
Columbia5063
Coos4253
Hood River4011
Clatsop3600
Baker2813
Crook2296
Curry1352
Grant1341
Lake1321
Tillamook1310
Harney991
Wallowa713
Gilliam230
Sherman230
Wheeler30
Unassigned00
Eugene
Few Clouds
42° wxIcon
Hi: 50° Lo: 32°
Feels Like: 39°
Corvallis
Clear
42° wxIcon
Hi: 50° Lo: 33°
Feels Like: 42°
Roseburg
Overcast
46° wxIcon
Hi: 52° Lo: 35°
Feels Like: 46°
North Bend
Clear
43° wxIcon
Hi: 54° Lo: 38°
Feels Like: 38°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events