Friday, November 16, 2018
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Market Digest Online FRIDAY, NOVEMBER 16, 2018..... The major stock indexes snapped multiday losing steaks Thursday as J. P. Morgan Chase led banks higher and iPhone maker Apple rebounded after dipping into bear market territory earlier in the week.

The Dow Jones Industrial Average erased a 200-point loss to finish the day up 208.77 points at 25,289.27 as both Apple and J.P. Morgan Chase climbed about 2.5 percent. Caterpillar rose 3.4 percent, while Walmart and Home Depot both weighed on the blue-chip index. The S&P 500 rose more than 1 percent to close at 2,730.2 as gains in financials, energy and technology offset losses in utility stocks. The tech-heavy Nasdaq Composite added 1.7 percent to climb to 7,259.03 as Alphabet added 1.5 percent and Netflix gained 1.1 percent.

The gains Thursday snap a five-day losing streak in the S&P 500 and a four-day losing streak in the Dow. Equities also appeared to rally Thursday afternoon after a report said that the U.S. and China have doubled down on efforts to reach an agreementin the growing trade war at the Group of 20 meeting later this month.

Representatives for President Donald Trump and China President Xi Jinping have intensified efforts to strike a deal following a phone call between the two leaders earlier this month, according to a Financial Times report. China reportedly responded to Washington's requests to deal with a range of American grievances, and the possibility of concessions was reviewed. One person familiar with the situation told the FT that U.S. Trade Representative Robert Lighthizer has already informed some industry executives the next wave of tariffs was already on hold.

Financials were mostly up on the day as J.P. Morgan buoyed the big banks higher after famed investor Warren Buffett's Berkshire Hathaway disclosed a new $4 billion stake in the company. Bank of America, also owned by Berkshire, rallied 2.5 percent. The SPDR S&P Bank ETF rose 1.7 percent.

Walmart's missed on revenue estimates in the third quarter, contributing to a 1.9 percent drop in shares. Though the company reported strong e-commerce sales and raised full-year guidance, the sales miss and news that Buffett dissolved his stake in the company weighed on the stock.

Losses in consumer discretionary stocks were exacerbated by home improvement retailer Home Depot, which fell 1.4 percent in the wake of disappointing earnings at a major homebuilder. KB Home sank 15 percent after the company cut its fourth-quarter sales forecast; peer homebuilder PulteGroup dropped 1.7 percent while Toll Brothers lost 5.9 percent.

Cisco shares rallied 5.5 percent after the tech giant beat on both the top and bottom lines for the first fiscal quarter. The San Jose, California-based Cisco reported revenue rose 7.7 percent as it takes action to mitigate the impact any future impact from the Trump administration's trade dispute with China So far, it remains one of a handful of technology companies that has not seen headwinds as a result of tariffs between the two economic powerhouses, according to CEO Chuck Robbins.

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