Stocks Turn Positive, Despite Record Drop In Retail Sales And Increasing Tensions With China

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Stocks turned positive today, despite a record drop in retail sales and increasing tensions with China by skleb1234

The stock market opened lower on Friday, before rallying and finishing the day positive despite taking a hit from more bad economic data and rising trade tensions between the United States and China.John Nacion/NurPhoto via Getty ImagesThe Dow Jones Industrial Average rose 0.3%, nearly 100 points, on Friday, while the S&P 500 gained 0.4% and the Nasdaq was up 0.8%.

U.S. monthly retail sales declined a record 16.4% in April—more than the 12.3% expected, as the coronavirus took a toll on consumer spending. Although that sent retail stocks lower initially, many of them rebounded later in the session, driving the market higher: The SPDR S&P Retail ETF went from being down 1.4% to up nearly 2% by the end of Friday.

Investor sentiment also taken a hit from re-escalating trade tensions with China: The Trump administration on Friday morningChina insider Hu Xiijin, editor-in-chief of the state-run Global Times,via Twitter on Friday, saying that if the U.S. takes further action to block Huawei, China could retaliate by activating iits “unreliable entity list.”

That would allow China to “restrict or investigate” U.S. companies like Apple, Qualcomm and Cisco as well as suspend purchases of Boeing airplanes.The stock market still had its worst week since late March. The Dow and S&P 500 were both down nearly 2.5% for the week, while the Nasdaq

 

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