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Stocks - Wall Street Opens Down as Chip Stocks Struggle

Published 2018-08-17, 09:32 a/m
© Reuters.  Weak earnings guidance kept pressure on semiconductor stocks early.
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Investing.com - Stocks started the day lower on Wall Street Friday, as global market selling on a further tumble in the Turkish lira hit the broader market and weakness in semiconductor earnings hit technology shares.

The Dow fell 2.61 points, or 0.01%, to 25,556.04. The S&P 500 dipped down 3.76 points, or 0.13%, to 2,836.93. And the Nasdaq Composite lost 29.89 points, or 0.38%, to 7,776.64.

USD/TRY was higher as the lira took a dive ahead of trading, pressuring European indices.

U.S. Treasury Secretary Steven Mnuchin announced that the U.S. is prepared to slap Turkey with more sanctions if President Recep Tayyip Erdogan refuses the quick release of an American pastor.

Investors will have more information on which to trade the broader market when the University of Michigan releases its consumer sentiment index at 10:00 AM ET (14:00 GMT). Economists expect that the index rose to 98.1 from 97.9 in July.

Chip stocks struggled after Nvidia and Applied Materials spooked investors with weak guidance.

Nvidia (NASDAQ:NVDA) lost 3.44% and Applied Materials (NASDAQ:AMAT) sank 9%. Dow component Intel (NASDAQ:INTC) fell 1.34%.

The Philadelphia Semiconductor Index slipped 2%.

Elsewhere in individual stock news, Tesla (NASDAQ:TSLA) slumped 3.15% as chief executive Elon Musk confessed to The New York times that “this past year has been the most difficult and painful year of my career.”

Deere (NYSE:DE) stock declined 2.6% after the company cut its fiscal full-year earnings forecast.

But Nordstrom (NYSE:JWN) surged 9.2% as it reported a same-store sales increase that smashed expectations.

Investors also digested a tweet from President Donald Trump, who said he has asked the Securities and Exchange Commission to study a plan to only require companies to report earnings every six months, rather than quarterly.

In Europe, stocks were down. Germany’s DAX fell 82.13 points, or 0.67%, while in France the CAC 40 decreased 28.30 points, or 0.53%, and in London, the FTSE 100 was down 34.87 points, or 0.46%. Meanwhile the pan-European Euro Stoxx 50 lost 21.46 points, or 0.63%, while Spain’s IBEX 35 slumped 40 points, or 0.42%.

In commodities, gold futures rose 0.08% to $1,184.90 a troy ounce, while crude oil futures increased 1.08% to $66.17 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.35% to 96.30.

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