Stocks on the last day of week 32 of the year 2019 closed in negative territory in the main stock market in the world, but with a weekly recovery of the Dow Jones erasing previous losses and a decline in the S&P 500 and Nasdaq indices, after that the president of the USA He will indicate on Friday that his country is not ready for a trade agreement with China and that he does not want to do business with the Asian technology giant Huawei.
President Trump's comments followed a report that said Washington could delay licenses for US companies seeking to do business with Huawei, which generated a direct impact among technology giants and especially chip manufacturers such as Micron Technology , Skyworks Solutions and Nvidia, losing ground in the PHLX semiconductor sector with -1.1% during today's day Friday, August 9, 2019.
Trump blacklisted Huawei, the world's largest phone dialer, in May 2019 preventing him from buying American chips. But he agreed last month to give timely licensing decisions to several technology companies. The United States took action against Huawei. after China stopped buying American agricultural products in response to Trump's surprise threat of tariffs last week.
For now the next meeting between the great powers to try to reach an agreement in this trade war, will take place in September, although its realization seems to be canceled beforehand, due to the entry into force of other tariffs on Chinese imports of $ 300 billion The first day of next month.
Dow Jones recovers during week 32.
In the period of week 32 of the year 2019 between Monday, August 5 and Friday, August 9, 2019, the main reference of Wall Street was able to recover after the fall of the beginning of the week that was only a scare for the index.
Dow Jones went from opening on Monday 05 with 26055,289 points to close the day on Friday with 26287.44 units, for a weekly increase of 232.15 points, or a + 0.87% accumulated in the span of five days.
The gainers of this index in the aforementioned period were from the service area, with McDonald, Coca Cola and American Express leading the list with a weekly yield of + 3.11%. + 2.08% and + 1.50% respectively.
The negative note of the components that comprise the DJI was for the technology sector with IBM, Intel and Pfizer leading the top3 of losses in the week with strong falls of -7.55%, -5.55% and -4.34% respectively.
S&P 500 earns more than one percentage point.
The exclusive index after an overwhelming start to the week where it lost about -1.35%, managed to recover in the week despite closing down on Friday, August 9, 2019. Its performance was positive with a profit from + 1.22% from 2882.90 to 2918.65 units in the five days of the indicated period.
The top 3 of the gainers stocks of the index in the week had excellent performance with double digits. The honor site went to Advance Micro Devices Inc (AMD) with an excellent + 16.13%, followed by TDG and TSN with + 15.67% and 10.79% respectively.
In the counterpart of the list, are Nektar Therapeutics (-32.71%), DXC Technology Company (-32.61%) and Kraft Heinz Company (-17.73%) in the order indicated.
The Technology sector most affected by the commercial war.
The stocks of the giants of the technology sector of chips for smartphones, saw the hope of resuming sales with the giant Chinese manufacturer Huawei disappear. after President Donald Trump threw back the approval granted to do business with the Asian company, the main market of American companies.
Despite having achieved an excellent half-week in contrast to the rest of his Wall Street peers, government decisions on the postponement of an agreement with China by the US president have generated a heavy loss for the Nasdaq technology index, the main loser of this commercial war, evaporating the levels above the 8000 points reached in the previous day.
Its opening by the level of 7800.95 points was exceeded during the week, with a cumulative positive performance of up to + 1.67% in the period indicated.
The five major companies in the sector such as Facebook, Google Alphabet, Microsoft, IBM and Apple closed the week in red territory with heavy losses above half a percentage point, a large amount of money judging by the market capitalization of each of these Companies.
This same behavior had the giant American manufacturers of chips and semiconductors such as Qualcom, Intel, Micron, Nvidia and Skyworks, with strong falls caused by the contraction that occurred on Friday during the statements of President Trump.
In conclusion, Wall Street, the main reference of the stock markets worldwide, managed to recover during the week despite the back foot at the beginning of the period, thanks in large part to the day yesterday Thursday where the market closed completely upwards, reducing losses due to the negative closing of the last day of week 32. Without a doubt, the trade war with China will be fundamental for the American economy, but everything seems to indicate that the words of the president of the United States. Since they are on the right track in the decisions made around this matter, they have had a number support for the weekly accumulated weekly in the New York Stock Exchange.