U.S. markets closed out an eventful week with a down day as stocks slipped following President Trump's assertion that China buying agriculture products will not be enough to get a trade deal done. After Trump said during a White House press conference that he's not looking for a partial deal, he's looking for a "complete deal," news crossed that a Chinese trade delegation would be returning home earlier than expected and skipping a planned visit to farms in Montana. The major indexes closed the week lower, breaking their streak of three consecutive weeks of gains, following turmoil in money markets that the Fed struggled to control and a drone attack in Saudi Arabia that set off dramatic swings in crude oil prices.
ECONOMIC EVENTS: In the U.S., the economic calendar was quiet, with only a few Fed speakers worth noting. Boston Federal Reserve Bank President Eric Rosengren explained his hawkish dissent, stating his view that "additional stimulus is not needed for an economy where labor markets are already tight, and risks further inflating the prices of risky assets and encouraging households and firms to take on too much leverage." Meanwhile, Fed Vice Chair Richard Clarida reiterated the economy is in a good place and he's not concerned about the diversity of opinions on the FOMC, which he views as the strength of the Committee.
In trade news, U.S. President Donald Trump said that China buying agriculture products will not be enough to get a trade deal done between the two countries. Meanwhile, the Montana Firm Bureau told Reuters that Chinese officials who were due to visit U.S. farm states next week have canceled their trip to Montana.
In energy news, Baker Hughes reported that the U.S. rig count is down 18 rigs from last week to 868.
TOP NEWS: Ten of Apple's (AAPL) 15 requests for exclusions from 25% tariffs on Chinese imports have progressed into the third and almost final stage of review, even though U.S. President Donald Trump suggested that he would rebuff them, Bloomberg's Mark Niquette and Mark Gurman reported.
Shares of McDonald's (MCD) closed fractionally lower after the burger giant last night raised its quarterly dividend by 8% to $1.25 per share.
After Facebook (FB) CEO Mark Zuckerberg met with President Donald Trump on Thursday afternoon, Trump tweeted that it was a “nice meeting” and a Facebook spokesperson said that it was "constructive." In addition, Facebook provided an update on its App Developer investigation, saying it has suspended "tens of thousands" of apps over data misuse.
Meanwhile, Fitbit (FIT) shares jumped about 10% after Reuters reported that the company has held talks with investment bank Qatalyst Partners about whether it should engage with potential buyers about a sale. The bank has been seeking to persuade the company to explore its options, arguing it could draw acquisition interest from Alphabet (GOOG) or a private equity buyer, but Fitibt has not decided whether it will pursue a deal, according to Reuters.
Additionally, reports indicated that Walmart (WMT) will stop the sale of e-cigarettes in its stores as a rash of mysterious deaths linked to vaping draws intense scrutiny. Publicly traded tobacco companies include Altria Group (MO), which owns 35% of Juul Labs, British American Tobacco (BTI), Imperial Brands (IMBBY) and Philip Morris (PM).
MAJOR MOVERS: Among the noteworthy gainers was McDermott (MDR), which bounced back 27% after announcing that it recently received unsolicited approaches to acquire all or part of Lummus Technology, with valuations exceeding $2.5B. Also higher was California Resources (CRC), which jumped 13% after Bloomberg reported the company said it is not considering restructuring, refuting a report published yesterday afternoon
Among the notable losers was Roku (ROKU), which fell 19% after Pivotal Research analyst Jeffrey Wlodarczak initiated coverage of the stock with a Sell rating and $60 price target. Also lower was Wayfair (W), which slipped nearly 5% after Berenberg analyst Graham Renwick initiated coverage of the stock with a Sell rating and $100 price target.
INDEXES: The Dow fell 160.33, or 0.59%, to 26,934.46 , the Nasdaq lost 65.21, or 0.80%, to 8,117.67 , and the S&P 500 declined 14.79, or 0.49%, to 2,992.00.
