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US Indexes Lower Friday on New Tariff Warnings

The Dow Jones Industrial Average closed at 23,723.69 on Friday with a loss of 622.03 points or -2.55%. The S&P 500 closed at 2,830.71 for a loss of 81.72 points or -2.81%. The Nasdaq Composite closed at 8,604.95 for a loss of 284.60 points or -3.20%. The VIX Volatility Index was higher at 37.19 for a gain of 3.04 points or 8.90%.

Friday's market movers

U.S. stocks closed lower Friday. The Trump administration did not renew shelter and social distancing requirements, leaving decisions now up to the states. The Trump administration did however warn of tariffs and potential new penalties for damages from the coronavirus. President Trump could potentially hit China with retaliatory tariffs for starting the coronavirus outbreak in the first place.

On the earnings calendar:

  • Chevron (CVX): Revenue of $29.71 billion decreased 15.6% year over year and missed estimates by $750 million. First-quarter GAAP earnings of $1.93 per share beat estimates by $1.27.
  • Exxon Mobil (NYSE:XOM): Revenue of $56.16 billion decreased 11.7% year over year and missed estimates by $2.09 billion. A first-quarter GAAP loss of 14 cents missed estimates by 18 cents and non-GAAP EPS of 53 cents beat estimates by 47 cents.
  • Magellan Midstream Partners (MMP): Revenue of $782.81 million increased 24.5% year over year and beat estimates by $106.14 million. First-quarter GAAP EPS of $1.26 beat estimates by 22 cents and non-GAAP EPS of $1.28 beat estimates by 24 cents.
  • MoneyGram (MGI): Revenue of $290.9 million decreased 7.8% year over year and missed estimates by $4.82 million. A first-quarter GAAP loss of 28 cents per share missed estimates by 18 cents and non-GAAP loss of 5 cents missed estimates by 1 cent.

Both Chevron and Exxon said they would halt dividend payments. Amazon's CEO was also called to Congress for a testimony in regards to previous information he has provided.

Coronavirus cases in the U.S. increased to over 1,094,800. The Food and Drug Administration announced an emergency use authorization of Gilead's (GILD) remdesivir to help coronavirus patients after positive results were released from trials. The drug is taken through an IV.

Economic reports affecting market trading included the following:

  • The Markit Manufacturing PMI decreased to 36.1 in April from 48.5.
  • The ISM Manufacturing PMI decreased to 41.5 in April from 49.1. Separately the ISM Manufacturing Prices Index decreased to 35.3 from 37.4, the ISM Manufacturing New Orders Index decreased to 27.1 from 42.2 and the ISM Manufacturing Employment Index decreased to 27.5 from 43.8.
  • Construction spending increased 0.9% in March.
  • The Baker Hughes North American oil rig count decreased to 435 from 491.

In the S&P 500, energy and consumer discretionary led losses. In the S&P 100, the following stocks led losses and gains:

  • Occidental Petroleum (NYSE:OXY) -8.19%
  • Amazon (NASDAQ:AMZN) -7.67%
  • Halliburton (NYSE:HAL) -7.05%
  • ConocoPhillips (NYSE:COP) -7.03%
  • FedEx (NYSE:FDX) -6.72%
  • Exxon (NYSE:XOM) -6.62%
  • Charter Communications (NASDAQ:CHTR) +2.91%
  • Allergan (NYSE:AGN) +1.28%
  • Walmart (NYSE:WMT) +1.13%

Small-cap stocks

In small caps, the Russell 2000 closed at 1,260.48 for a loss of 50.18 points or -3.83%. The S&P 600 closed at 740.02 for a loss of 31.09 points or -4.03%. The Dow Jones U.S. Small-Cap Growth Index closed at 8,539.79 for a loss of 310.56 points or -3.51%. The Dow Jones U.S. Small-Cap Value Index closed at 6,363.86 for a loss of 293.99 points or -4.42%.

Other notable indexes

Other notable index closes included the S&P 400 Mid-Cap Index at 1,590.48 for a loss of 55.88 points or -3.39%; the S&P 100 at 1,302.16 for a loss of 35.86 points or -2.68%; the Nasdaq 100 at 8,718.18 for a loss of 282.33 points or -3.14%; the Russell 3000 at 1,635.59 for a loss of 49.36 points or -2.93%; the Russell 1000 at 1,555.78 for a loss of 46.04 points or -2.87%; the Wilshire 5000 at 28,599.80 for a loss of 865.77 points or -2.94%; and the Dow Jones U.S. Select Dividend Index at 557.02 for a loss of 20.17 points or -3.49%.

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This article first appeared on GuruFocus.