Stocks finished mixed Thursday, as investors await further trade updates from the upcoming G-20 summit. The Dow fell 10 points, while the S&P 500 advanced 0.4% to snap its four day losing streak. The Nasdaq Composite climbed 0.7%.
Overnight, a Chinese newspaper reported that Washington and Beijing had tentatively agreed to a truce that would reignite negotiations and delay the implementation of subsequent tariffs. The early optimism was tempered, after the White House’s top economic advisor, Larry Kudlow, stated additional tariffs are still an option and stated the President is content where the United States economy stands. An additional report suggested the U.S. is unlikely to agree to lift any restrictions on Chinese tech-giant Huawei in any formal trade agreement.
On the data front, the final reading on first-quarter U.S. GDP showed the economy expanded at an unrevised 3.1% annualized pace, slightly below expectations for a 3.2% reading. Separately, pending home sales rebounded 1.1% in May from a 1.5% decline in the prior period. Treasuries strengthened, with the yield on the 10-year note down four basis points to 2.00%.
The Financials and Healthcare sectors paced the gains as large-cap bank and bio-tech shares outperformed. In corporate news, Boeing slipped 2.9% after federal regulators found new safety risks on the grounded 737 Max aircrafts. In earnings, KB Home jumped 7.9% after topping analyst estimates on both the top and bottom line. Walgreens Boots Alliance added 4.1% after besting profit expectations. Conagra Brands slumped 12.1% after missing Wall Street earnings projections and lowering its forward guidance.