U.S markets rose on Friday after a report surfaced suggesting President Trump and Xi Jinping hope to discuss U.S.-China trade relations in November. We saw all major indexes rise including stocks that in the past had been hurt by the increasing trade related tensions between the China and the US. Caterpillar Inc. was the best performer of the Dow rising 2.26% to close at $139.34 just below the key $140.00 level. Apple shares similarly rose 2%, yet all the FAANG stocks posted losses for the day with Facebook -0.52%, Amazon Inc. -0.23% and Netflix -1.76%. All of the S&P 500 finished in positive territory as Real Estate and Materials proved to be better performers rising 0.96% and 0.74%, respectively.
It was another turbulent day for Tesla Inc. as shares dropped 8.93 percent, its poorest performance since June 2016 when it fell 10.45 percent after Chief Executive Elon Musk’s interview with the New York Times following his disputed tweet that suggested he is considering taking the company private. According to reports the SEC began an investigation and has sent out subpoenas for information. Shares in Tesla closed at $305.50 ahead of the key $300.00 level.
Corporate earnings continued to dominate as shares of Applied Materials fell 7.72 percent after the company issues weaker than expected guidance for its fiscal fourth quarter. Nvidia also reported and shares fell 4.90 percent after poor revenue forecasts disappointed investors. On the flipside, shares of Nordstrom Inc. (JWN) jumped 13.2 percent after posting better-than-expected same-store sales and raising its profit forecast
In currency markets the dollar fell as trade fears between China and the U.S eased. The dollar index was down 0.56 percent at 96.107 whilst the euro rebounded from more than a 13-month low higher by 0.59 percent at $1.1442. Strength was also seen in the Japanese yen and the Swiss franc, which tend to rise in times of geopolitical and financial tensions.
Chart of the Day: Applied Materials (AMAT) Daily Chart