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
-
Don't Fall For These Five Costly Medicare MythsSigning up for Medicare can be complicated, and mistakes can be costly. Let's demystify these five Medicare myths to avoid expensive penalties.
-
Could Screen Time Be Good for Your Health?We all love our screen time. Could your tech habit be helping you age gracefully? The answer is astonishing.
-
Stock Market Today: Another Quarter, More Mixed Price Action"Up and to the right" remains the general trend despite persistent uncertainty around critical policy issues.
-
Are These the Next Stocks to Split?Interactive Brokers' recently split its stock to makes its shares more accessible to investors. Could these high-priced stocks be next?
-
We Are Peter Lynch: How to Invest in What You KnowTake a look around, go to a free stock market data website, and get to work.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears EbbConstructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: "Good Trump" Gives Dow 740-Point BoostFriday's headwind was Tuesday's tailwind, as President Trump's social media posts continue to drag and drive financial markets.
-
A Case Study in Mismatched Fund ReturnsStock Market Why do a fund's returns sometimes differ from its underlying index? A longstanding legal principle holds the key.
-
Stock Market Today: Stocks Drop as Trump Takes Aim at EU, AppleThe commander in chief issued new tariff threats against the European Union and the iPhone maker.
-
Stock Market Today: Dow Falls 817 Points as Bond Yields RiseFinancial markets are once again focused on Washington, D.C., but taxes, not tariffs, are driving recent price action.
