Stocks were weak at the outset after negotiators from China and the U.S. met into the evening on Thursday but failed to avert an increase in U.S. tariffs on $200B in Chinese products. The tariff hike took effect at 12:01 a.m. this morning and the President subsequently tweeted that "talks with China continue in a very congenial manner - there is absolutely no need to rush." The President added that the process has begun to place additional tariffs, at a 25% rate, on the remaining $325B worth of Chinese imports that so far have not seen duties placed on them. Late in the day, however, the President gave the market some additional hope by tweeting that the "relationship between President Xi and myself remains a very strong one" and tariffs on China "may or may not be removed depending on what happens" in future negotiations. The averages had been regaining their losses prior to the late day tweet, but that cemented the move and stocks ended a down week on a high note with their first advance in days.
ECONOMIC EVENTS: In the U.S., the Consumer Prices Index rose 0.3% and the core CPI edged up 0.1% in April, both of which were a little below consensus forecasts. In energy news, Baker Hughes reported that the U.S. rig count is down 2 rigs from last week to 988.
In trade news, U.S. trade talks with China ended for the time being as top Chinese trade negotiator Lie He left the Office of the U.S. Trade Representative, according to media reports. According to U.S. Treasury Secretary Steven Mnuchin, the trade talks were "constructive" among both parties, though he declined to comment further. Meanwhile, Hu Xijin, the Editor-in-chief of Chinese and English editions of the Global Times, tweeted that trade talks between the two countries didn't break down, as both sides have agreed to meet again in Beijing "in the future." Following the ended talks, Nikkei Asian Review reported that the U.S. is pushing Japan for a quick agreement on a bilateral trade deal. Also, President Trump confirmed that more talks are expected, though Secretary Mnuchin said that nothing is planned as of now in terms of more talks.
TOP NEWS: Last night, Anadarko (APC) said that it had agreed to be acquired by Occidental Petroleum (OXY) in a cash and stock deal. Under the terms of the deal, Occidental will acquire all of the outstanding shares of Anadarko for $59 in cash and 0.2934 of a share of Occidental common stock per share of Anadarko common stock. Anadarko noted in its announcement that it had terminated its previously announced merger pact with Chevron (CVX).
Symantec (SYMC) shares dropped 12.5% after the company reported fourth quarter results, provided weaker than expected guidance for the first quarter, and announced the resignation of president and chief executive office Greg Clark. Clark will be replaced by Richard Hill, current Symantec director and former chairman and CEO of Novellus Systems, on an interim basis. The company said it will commence a search process to find a permanent CEO.
In other earnings news, shares of Viacom (VIAB) were 2.6% higher after the media giant reported better than expected quarterly results.
Uber (UBER) opened trading in its initial public offering at $42 per share after being priced a $45 per share, putting additional pressure on smaller peer Lyft (LYFT), which fell 7.4% after Uber's first trade. Uber ended the session 7.6% below its initial pricing, closing at $41.57.
MAJOR MOVERS: Among the noteworthy gainers was Buckeye Partners (BPL), which surged 28.5% after agreeing to be acquired by IFM Investors for $41.50 per common unit. Also higher after reporting quarterly results was Zillow (ZG), which gained 5.5%.
Among the notable losers was Jumia (JMIA), which fell 8.8% after Citron Research reiterated a $0 target on the stock and repeated its fraud call following a short report it published yesterday. Also lower after reporting quarterly results were Puma Biotechnology (PBYI) and Yelp (YELP), which dropped 38.6% and 14.4%, respectively.
INDEXES: The Dow rose 114.01, or 0.44%, to 25,942.37, the Nasdaq gained 6.35, or 0.08%, to 7,916.94, and the S&P 500 advanced 11.01, or 0.38%, to 2,881.65.
Bought by OXY
-0.37 (-0.50%)
Occidental Petroleum
-1.37 (-2.43%)
Chevron
+0.84 (+0.69%)
SYMC
+
Via Renewables
+0.93 (+2.76%)
VIAB
+
Uber
+ (+0.00%)
Lyft
-4.14 (-7.50%)
Buckeye Partners
+9.31 (+28.68%)
Zillow
+1.7 (+4.96%)
Zillow Group
+1.75 (+5.21%)
Jumia Technologies
-2.09 (-7.74%)
Puma Biotechnology
-11.64 (-38.72%)
Yelp
-5.73 (-14.42%)