Stocks’ sunny finish can’t make up for rocky week

Gains were tempered by flagging consumer and retail shares

US stocks finished Friday higher as trade hopes rose, but they couldn’t compensate for a rocky week in which the retail picture soured and technology shares languished.

Treasuries advanced the dollar retreated.

Equity markets have reacted swiftly to trade-related headlines in recent days as investors look for any hint that the threat of more tariffs will be removed, and the S&P 500 Index surged on Friday after US President Donald Trump appeared to signal a willingness to reach a deal with China at this month’s G-20 summit.

But those gains were tempered by flagging consumer and retail shares. Department-store chain Nordstrom declined on disappointing results, following let-downs from Macy’s and Dillard’s. Technology stocks wavered as chipmaker Nvidia had its worst trading day in a decade after issuing a lower than expected fourth-quarter outlook.

Year-end anxiety

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California utilities PG&E Corp and Edison International began to recover from steep losses brought on by the wildfires. Energy firms also advanced as crude continued its rally after a record losing streak. All told, the S&P 500 fell 1.6 per cent on the week.

“There’s a lot of things that the market’s wondering about with Trump’s latest announcement on trade. It’s obviously an unsettled issue and something that will continue to drive the markets for a few weeks,” said Curtis Holden, senior investment officer at Tanglewood Total Wealth Management, who added: “You’re seeing some anxiety, too, over Christmas spending.”

Equity markets remain volatile as the slowing Chinese economy and uncertain outlook for earnings coincide with investors’ adjusting to the tightening of US monetary policy. Political tensions in Europe are also hitting sentiment.