Dow falls more than 100 points, posts worst Thanksgiving week decline since 2011 as tech shares and oil fall

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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Nov. 2, 2018. 

Michael Nagle | Bloomberg | Getty Images

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Nov. 2, 2018. 

Stocks were also under pressure on Friday as crude oil prices plunged. West Texas Intermediate futures fell more than 6 percent to $51.03 per barrel, reaching their lowest level of the year.

“Tech stocks are under pressure once again but more troubling is that oil prices are collapsing,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “Lower oil prices are not a good sight for the economy.”

“OPEC has indicated they’re going to cut [production], but that’s not helping. That’s a bad sign,” said Cardillo.

The drop sent the Energy Select Sector SPDR Fund (XLE) — which tracks the S&P 500 energy sector — down more than 3.5 percent. Shares of Concho Resources, EOG Resources and Devon Energy led the XLE lower.

Crude’s decline comes at a time when U.S.-China trade tensions have raised concern of a possible economic slowdown. The two countries have imposed tariffs on billions of dollars worth of each other’s goods as the Trump administration takes on a protectionist stance on trade.

U.S. and Chinese leaders are expected to meet at a G-20 meeting in Argentina at the end of the month, though few economists expect the scheduled talks to resolve the trade dispute.

“A lot of the move have to do with tariffs and moves by the Fed,” said Greg Powell, CEO of Fi-Plan Partners. “Depending on what happens in those talks, that could change the whole dynamic in the market from a sentiment standpoint.”

China stocks fell on Friday in anticipation of the U.S.-China trade talks. The Shanghai Composite dropped 2.5 percent while the Shenzhen A Share index pulled back 3.7 percent.

Retailers bucked the negative trend, as the SPDR S&P Retail exchange-traded fund (XRT) rose 0.7 percent on Black Friday, one of the busiest shopping days of the year. Shares of Lands’ End and Etsy rose 5 percent and 3 percent, respectively, while L Brands gained more than 1 percent. Overstock, which is also in the XRT, surged more than 25 percent after its CEO said the company would sell its retail business to focus on crypto.

—CNBC’s
Sam Meredith
contributed to this report.

2018-11-23 17:31:25

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