NEW YORK: Wall Street was in mixed territory on Friday morning as falling crude prices dragged energy stocks lower and investors continued to digest the effects of a week of geopolitical uncertainty.
Trading volume was expected to be light ahead of the extended Memorial Day holiday weekend, the traditional start of summer in the United States.
About 20 minutes into the day’s trading, the Dow Jones Industrial Average had fallen 0.4 percent to 24,725.08, and the S&P 500 gave up 0.3 percent, falling to 2,719.19.
But the Nasdaq turned positive after a lower open, rising less than a tenth of a percentage point to 7,428.58.
Despite the nearing holiday, markets still had to contend with a confusing series of reports on geopolitics and trade, subjects which have rattled equities for months.
Shortly after the open, President Donald Trump said the summit with North Korea that he had called off just 24 hours before, could go ahead after all as talks with Pyongyang were continuing
Investors were contending with the possibility that the summit’s cancelation could cause Trump to be more aggressive in trade talks with China.
Meanwhile, officials in Mexico have reportedly offered to alter the rules of origin for duty-free trade in autos in order to reach an agreement on modernizing the North American Free Trade Agreement.
In US data, core durable goods for April, excluding volatile transportation sector, showed continued resilience but markets appeared little moved amid the headlines whiplash.
“In brief, there is a lot of noise in the echo chamber when it comes to trade, which is why the beach, a golf course, or a backyard lounger just might prove to be the best place to not trade today’s market,” said Patrick O’Hare of Briefing.com.
Crude prices sank to two week lows on reports exporting nations could ramp up production to replace lost supply from Venezuela and Iran.
Shares in Exxon Mobil fell 2.2 percent while Chevron lost 2.9 percent.
Meanwhile global clothing retailer Gap Inc nosedived more than 11 percent after reporting disappointing earnings.
Source: Brecorder
