US stocks rebound, but still face losses for the week
NEW YORK (AP) — U.S. stocks rebounded in morning trading on Wall Street Friday, but were still on track for a third straight week of losses.
The market has been swaying between gains and losses all week as investors face the prospect that the trade war between the U.S. and China will drag on longer than anticipated. Trading has been volatile since the dispute escalated earlier this month, with both sides taking measures to raise tariffs on each other's goods.
President Donald Trump said Thursday that he expects to meet with his Chinese counterpart Xi Jinping at a summit next month in Japan. Both sides have expressed a willingness to resume negotiations, while at the same ratcheting up the antagonistic rhetoric, leaving investors confused about what happens next.
Technology stocks rallied on Friday after leading losses on Thursday. Tech companies have been bearing the brunt of the now monthlong downturn as they face the possibility of restricted sales to Chinese companies. Apple rose 1% and Intuit jumped 5.8% after reporting solid profit results and issuing a surprisingly good forecast.
Health care stocks and financial companies also led the gainers. Medtronic rose 2%, Prudential Financial rose 1.3% and Capital One rose 1.2%.
Utilities lagged the market with small gains as investors shifted their money into riskier holdings. That marks a reversal from Thursday when investors fled to utilities and other safe-play holdings, including bonds. The yield on the 10 year Treasury rose to 2.33% after slipping to 2.29% Thursday, its lowest level in more than a year.
Consumer staples, which include beverage company Coca-Cola and General Mills, was the only losing sector.
KEEPING SCORE: The S&P 500 index rose 0.5% as of 10 a.m. The Dow Jones Industrial Average rose 138 points, or 0.5x%, to 25,630. The Nasdaq composite rose 0.8%.
SORE FEET: Foot Locker tumbled 16%, erasing all of its gains for the year. The shoe store reported disappointing first quarter financial results and trimmed its profit forecast.
The company's profit and revenue both fell short of forecasts, along with a key sales measure used by retailers. The company now expects full-year earnings per share to be up by high-single digits, a more reserved outlook than the double-digit increase it had forecast earlier.
Foot Locker, retailers and shoe companies all face higher costs if the U.S. goes ahead with additional tariffs on Chinese goods that would impact footwear. The company and others have sent a letter to President Donald Trump urging him not to put these additional tariffs into effect.
SPORTING GAINS: Hibbett Sports surged 21.9% after the sporting goods retailer blew past Wall Street's profit expectations and raised its forecast for the year.
The solid first quarter results included a surge in a key sales measure that also dominated analysts' forecasts.