Stock markets edge lower on mixed earnings reports
Stocks closed slightly lower Wednesday as investors reacted to a mixed batch of company earnings. Anadarko Petroleum lost 7.4 percent and videogame maker Take-two Interactive sank 13.8 percent. Both companies reported earnings that fell far short of what analysts were looking for.
General Motors climbed 1.6 percent after reporting a solid quarter, and Capri Holdings, the parent company of Michael Kors, jumped 11.3 percent.
The S&P 500 index fell 6 points to 2,731. The Dow Jones Industrial Average lost 21 points at 25,390. The Nasdaq dropped 26 points to 7,375.
Mnuchin says Powell, Trump had ‘productive’ meeting
Treasury Secretary Steven Mnuchin said Wednesday that President Donald Trump had a “quite productive” dinner with Federal Reserve Chairman Jerome Powell. He says they discussed a wide range of subjects, from the state of the economy to the Super Bowl and Tiger Woods’ golf game.
Talking to reporters at the White House, Mnuchin said that Trump was very engaged during the casual dinner Monday night. It took place in the White House residence and marked the first time Powell and Trump have met since Powell took office as Fed chairman a year ago.
No plans yet for US, China presidents to meet on trade
Treasury Secretary Steven Mnuchin said Wednesday there are no plans yet for President Donald Trump and Chinese President Xi Jinping to meet in hope of finalizing a trade deal, though Mnuchin plans to travel to China’s capital next week to continue negotiations.
The U.S. and China are in the midst of talks aimed at resolving a costly trade war, and Trump has said a comprehensive agreement is unlikely to be inked until he meets with his Chinese counterpart.
Mnuchin and trade representative Robert Lighthizer are leading a team to Beijing next week to continue the talks, but nothing is yet on the books for a Trump-xi meeting.
US trade deficit narrows in November
The U.S. trade deficit fell 11.5 percent in November to the lowest level since June.
The Commerce Department said Wednesday the gap between what the United States sells and what it buys from other countries dropped to $49.3 billion from a revised $55.7 billion in October. American exports fell 0.6 percent to $209.9 billion, but imports fell faster, dropping 2.9 percent to $259.2 billion.
The politically sensitive deficit with China in the trade of goods such as cars and cellphones fell 7.3 percent to $35.4 billion.
Tesla knocks $1,100 off price of the Model 3
Tesla is cutting $1,100 from the base price of its car designed for the mass market, the Model 3. The electric car company now says on its website that the car starts at $42,900, still a ways from its goal of lowering the base price to $35,000.
Tesla cut 7 percent of its workforce last month to trim costs and reduce the price of the car. CEO Elon Musk says the Model 3 must be competitive with gasoline-fueled cars for the company to succeed.
For $42,900, buyers will get a rearwheel-drive Model 3 in black with Tesla’s lower-range battery that goes 264 miles per charge. The price doesn’t include federal and state tax credits. The federal credit is now $3,750, but that expires at the end of the year.