More concerning headlines out of China pressured stocks early Friday, though the major indexes managed to climb off their session lows as Treasury yields retreated from recent highs. Next week brings a key Federal Reserve event – one that sent the markets into a tailspin last year.
Amid quiet economic and earnings calendars here at home, investors' attention turned to China. That's because Evergrande, the country's second-largest developer, filed for Chapter 15 bankruptcy protection late Thursday. Chapter 15 allows foreign companies with domestic assets to get protection from creditors via U.S. courts.
Evergrande's filing for bankruptcy protection is "fueling concerns for a domino effect of other troubled developers, and the response by China for relief has been found lacking so far, putting pressure on companies with major sales in China," such as Apple (AAPL, +0.3) and Tesla (TSLA, -1.7%), says Louis Navellier, chairman and founder of Navellier & Associates.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The bankruptcy buzz rattled several U.S.-listed Chinese stocks today. Electric vehicle stock Nio (NIO) was one of the biggest decliners, slumping 7.2%. E-commerce company JD.com (JD, -4.8%) and online gaming platform Bilibili (BILI, -6.4%) also sank.
Deere slides despite earnings beat
In single-stock news, Deere & Co. (DE) slid 5.3% after the farm equipment maker reported fiscal third-quarter earnings. The company disclosed higher-than-expected earnings of $10.20 per share on $15.8 billion in revenue. Based on its full-year guidance, though, fourth-quarter earnings are expected to arrive at "a more muted" $7.45 per share vs estimates for earnings of $7.50 per share, says Oppenheimer analyst Kristen Owen.
As for the major indexes, the Dow Jones Industrial Average closed 0.07% higher at 34,500, while the S&P 500 posted a marginal loss to end at 4,369 and the Nasdaq Composite slipped 0.2% to 13,290. All three benchmarks finished lower on the week.
Fed's Jackson Hole symposium on deck
Looking ahead, next week brings the Federal Reserve's annual Economic Policy Symposium in Jackson Hole, Wyoming. "While Powell will likely refrain from giving any explicit guidance, we'll be watching what he says about the recent bond market rout, the surprisingly strong economic data, the Fed's 2% inflation target and any thoughts about the neutral policy rate," says Larry Adam, chief investment officer at Raymond James.
The three-day event kicks off on Thursday, August 24, and has the potential to spark volatility in the equities and bond markets. Last year, for instance, a hawkish speech from Fed Chair Jerome Powell sent stocks plummeting across the board.
Related Content
-
Three Ways President Trump Could Impact the EconomyThe Letter Some of Trump's top priorities could boost economic growth, but others risk fueling inflation.
-
Average Health Care Costs by Age: Can You Afford It?Expect to pay more as you age. We've got solutions for how to cover these costs, which can exceed $1,000 per month in your 60s.
-
Stock Market Today: Stocks Dragged Down by Strong DataInvestors weigh the prospect of no more rate cuts in the current cycle.
-
Investing Moves to Make at the Start of the YearAfter another big year for stocks in 2024, investors may want to diversify in 2025. Here are five portfolio moves to make at the start of the year.
-
Stock Market Today: Stocks End a Strong Year With a WhimperThe S&P 500 notched its first back-to-back 20%+ annual returns since the late 1990s.
-
Stock Market Today: Dow Sinks 333 Points as Mega Caps SlideThe main indexes sold off at the open and stayed lower through the close, putting the Santa Claus rally at risk.
-
Stock Market Today: Stocks Soar to Start the Santa Claus RallyAll three main equity indexes flew like the down of a thistle on Christmas Eve.
-
Stock Market Today: Dow Dives 1,123 Points After FedMarket participants reacted predictably to a well-telegraphed hawkish turn by the Federal Reserve.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are SayingFederal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
-
Stock Market Today: The Dow Slides Into Its First 9-Day Losing Streak Since 1978A Santa Claus rally is on hold as markets wait for more information about monetary policy.
