Twitter and Tech Stocks Buoy a Flat Stock Market, Despite U.S.-China Trade Uncertainty
Deal or no deal?
Treasury Secretary Steve Mnuchin gave an ambiguous read of the U.S.-China trade talks today as they resume in Beijing this week. He said that "the talks are nearing a point where they would either produce a deal or end with no agreement," according to a New York Times report.
Investors didn't seem phased by the uncertainty. Strong March consumer spending data released this morning confirmed the resilience of the U.S. economy and the stock market continued to rise into uncharted territory. The S&P 500 and Nasdaq Composite indexes were up 0.11 percent and 0.19 percent respectively, breaking above record highs set last week. The Dow index, up 0.04 percent today, remains slightly below its all-time high.
Twitter had the biggest gain on the index, rising 2.95 percent. Facebook (1.31 percent) and Adobe Systems Inc. (1.53 percent) were also up nicely. Amazon (-0.6 percent) and Netflix (-0.81 percent) had notable declines. Alphabet Inc., up 1.47 percent, set a new 52-week high today. The stock, however, was down in post-close trading after the company reported financial results.
Tesla shares rebounded sharply after dropping to their lowest level in two years last week. Up 2.69 percent today, they are down 27.4 percent this year and hit a 52-week low last Friday. CEO Elon Musk and the SEC settled their dispute over Mr. Musk's tweeting habits last week. In a filing with the SEC, the company also suggested it would be looking to raise more capital.
The REIT sector was generally weak as interest rates ticked up on the strong consumer spending report. Kimco Realty Corp. (-2.75 percent) had the biggest decline on the Entrepreneur Index™. Simon Property Group (-1.6 percent) was also down sharply.
Asset manager Franklin Resources fell 2.65 percent today. Despite the fund company beating earnings and revenue estimates on Friday, the stock price has been dropping. The shares are still up 15.2 percent this year.
Other losses on the day included medical products-maker Boston Scientific Corp. (-1.74 percent), pipeline manager Kinder Morgan (-1.83 percent) and hospital manager Universal Health Services (-1.56 percent).
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.