Stocks waver along with U.S.-Canada trade talks
NEW YORK—Stocks hardly budged Friday as the U.S. and Canada were unable to complete a trade deal, but the two sides intend to continue negotiating next week.
Energy companies slipped along with oil prices Friday and high-dividend stocks also fell. Technology companies and retailers made some modest gains. Trading was very light ahead of the Labor Day holiday in the U.S. on Monday.
Investors hoped the two countries would finish the outlines of a revamped NAFTA pact after the U.S. and Mexico announced a preliminary agreement Monday. Right before the markets closed, U.S. Trade Representative Robert Lighthizer said talks will resume on Wednesday.
President Donald Trump says he is willing to make a deal with just Mexico, excluding Canada, but Wall Street is confident the final deal will include all three.
Katie Nixon, chief investment officer for Northern Trust Wealth Management, said Trump will probably submit the outlines of a U.S.-Canada trade deal to Congress soon. But the trade war between the U.S. and China may drag on for months, if not longer, and Nixon said that could stop businesses from investing and affect the economy and the stock market.
The S&P 500 index was down for most of the day but inched up 0.39 points to close at 2,901.52. The Dow Jones Industrial Average fell 22.10 points, or 0.1 percent, to 25,964.82.
The Nasdaq composite rose 21.17 points, or 0.3 percent, to 8,109.54. The Russell 2000 index of smaller-company stocks gained 8.40 points, or 0.5 percent, to a record high of 1,740.75.
Ford declined 2.3 percent to $9.48 following reports the company canceled plans to import a version of the Ford Focus that is made in China, citing the tariffs proposed by the Trump administration.
Otherwise there weren’t many developments on trade, and investors responded instead to the few remaining company earnings reports in the current cycle.
Stocks slid Thursday afternoon after Bloomberg News reported that the Trump administration could escalate the U.S.-China trade war next week by putting tariffs on $200 billion in imports. Meanwhile the U.S. and Canada are resuming trade negotiations.
The S&P 500 rose 3 percent for the month and the Nasdaq jumped 5.7 percent.
Coca-Cola said it will pay $5.1 billion for the biggest coffee company in Britain. Costa has 2,400 shops in the U.K. and about 1,400 in more than 30 other countries.
Coca-Cola already owns the Georgia and Gold Peak coffee brands, which make bottled and canned drinks, but the purchase of Costa might be a step toward com- peting with Starbucks. In the last few years Coke has also acquired a minority stake in sports drink company BodyArmor.
Coca-Cola fell 0.8 percent to $44.57.
Benchmark U.S. crude fell 0.6 percent to $69.80 a barrel in New York. Brent crude, used to price international oils, dipped 0.5 percent to $77.42 a barrel in London.
Wholesale gasoline was unchanged at $2.14 a gallon. Heating oil lost 0.3 percent to $2.24 a gallon. Natural gas gained 1.5 percent to $2.92 per 1,000 cubic feet.