Stocks decline as earnings season continues.
The U.S. stock market declined on Friday, giving back weekly gains as investors dissected the latest batches of economic data out of China.
All of Wall Street’s major indices finished in negative territory. The Dow Jones Industrial Average (DJIA) retreated 255.68 points, or 1%, to 26,841.58.
The broad S&P 500 Index (SPY) declined 0.4% to close at 2,986.20. Most of the 11 primary sectors finished lower, with industrials, information technology and communication services leading the downtrend. On the opposite side of the ledger, the much smaller real estate sector put up large gains.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) closed down 0.8% at 8,089.54.
A measure of implied volatility known as the CBOE VIX (VXX) rose on Friday, as rocky trading conditions returned to Wall Street. The so-called “fear index” peaked at 15.16 on a scale of 1-100 where 20 represents the historic average. It would eventually settle at 14.20, having gained 3%.
In economic data, China’s gross domestic product (GDP) expanded just 6% annually in the third quarter, marking the slowest pact of expansion in decades. The Chinese economy has been under pressure over the yearlong trade war with the United States. Both sides reached a tentative agreement last week that freezes U.S. tariffs on Chinese goods in exchange for larger agriculture purchases.
The Final Word: Corporate earnings will dominate the headlines next week, with several leading companies scheduled to report. Corporate America is on track for its third straight quarter of year-over-year earnings declines, according to FactSet, a financial research firm.