Market Roundup: Prolonged Trade Dispute Resulted in High Negativity for the Week

Published: Dec. 10, 2018, 2:14 p.m.

Indices kicked off the week by posting gains on Monday, as stocks stepped up on trade-war truce news. President Trump will hold off on increasing tariffs on China-made goods for at least 90 days as the two sides negotiate a settlement. In economic news, manufacturing in the United States ramped up in November according to the ISM Manufacturing Index. November’s reading came in at 59.3, up from 57.7 in October. Indices closed well into red territory on Tuesday as stocks sold off amid United States-China trade deal concerns and fears of slowing economic growth. The 90-day delay in additional tariffs that boosted Monday’s market action was thwarted when the White House stated that these would begin on January 1st, 2019. The stock market was closed Wednesday for a national day of mourning to honor former President George H.W. Bush, who died at the age of 94. Unfortunately, the pause in market action didn’t help the slide as the major indices closed with mixed moves on Thursday. The Dow Jones Industrial Average and S&P 500 Index ended in the red and the NAASDAQ Composite closed slightly in the green zone. Looking elsewhere, according to the ADP National Employment Report, the United States added 179,000 jobs in November versus an expected 195,000. Indices again landed in red territory on Friday. The Labor Department data showed an addition of 155,000 jobs in November, down from 250,000 in October and below economists’ expectations of a gain of 195,000. The unemployment rate remained at 3.7%, the lowest in 49 years. On another note, consumer confidence levels are holding steady in December. In a preliminary reading, the University of Michigan Consumer Sentiment Survey hit 97.5, matching the final result for November. All told, it was a difficult week for stocks, with declines in the major indices ranging between 5.57% and 6.35%.