By Sara Sjolin and Anora Mahmudova, MarketWatch
Main indexes on track for weekly gains
U.S. stocks traded flat to slightly lower on Friday as investors
appeared reluctant to make big bets ahead of the first round of
France's closely watched presidential election this weekend.
The main indexes were on track to book weekly gains,
however.
The S&P 500 index was down 2 points, or 0.1%, at 2,3535.
Telecoms and energy shares were leading losses, down 0.7%.
The Dow Jones Industrial Average was off 11 points, or 0.1%, at
20,567. The Nasdaq Composite Index retreated from its record close
level, off 6 points, or 0.1%, at 5,910.
Lack of progress in passing and implementing tax reforms have
put a damper on the monthslong rally that followed the presidential
elections in November.
But markets continue to react to comments on policy changes by
the Trump administration cabinet members, such as Treasury
Secretary Steven Mnuchin and White House chief economic adviser
Gary Cohn.
Mnuchin on Thursday said that President Donald Trump's tax
overhaul will be unveiled in the near future, bolstering
sentiment.
"A move by Trump to challenge steel imports and positive tax
reform rhetoric from Treasury Secretary Mnuchin revived hopes for
the fabled Trump 'reflation trade,'" said analysts at Accendo
Markets, in a note.
"Markets have also taken in their stride another terror attack
in the French capital just days before Sunday's first round of the
Presidential election," they added.
See:5 charts show what the French presidential election means
for financial markets
(http://www.marketwatch.com/story/5-charts-show-what-the-french-presidential-election-means-for-financial-markets-2017-04-21)
Late Thursday, a gunman opened fire
(http://www.marketwatch.com/story/gunman-slain-after-killing-paris-police-officer-trump-suggests-terrorism-2017-04-20)
on the Champs-Élysées boulevard in Paris, killing a police officer
and wounding two others. European stocks
(http://www.marketwatch.com/story/french-stocks-slide-after-paris-attack-fuels-election-uncertainty-2017-04-21)
were mixed, with France's CAC 40 index down 0.2%.
The euro was trading at $1.0699, down from $1.0718 late Thursday
in New York.
The attack could give a late-campaign surge in support for
anti-immigration, far-right candidate Marine Le Pen in the tight
presidential race, analysts said. Le Pen has vowed to hold a
referendum on France's membership of the European Union, fueling
fears of a breakup of the bloc. One of her three key rivals,
far-left euroskeptic Jean Luc Melenchon, has also pledged to
renegotiate EU treaties and hold a referendum.
"A Le Pen (far right) & Mélenchon (far left) result would
surely raise alarms. Markets look to be pricing in something
between the two with [centrist candidate Emmanuel] Macron and Le
Pen progressing to the second round in [two weeks] time, although
the last year of global political events has taught us to expect
the unexpected," the Accendo analysts said.
Read:Here's how France's hotly contested election could spark
market turmoil
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)
(http://www.marketwatch.com/story/heres-how-frances-hotly-contested-election-could-spark-market-turmoil-2017-04-19)Economic
news: Wrapping up the data calendar for the week, the Markit flash
purchasing managers index for April dropped to 52.7 from 53.2.
In Federal Reserve news, Minneapolis Fed President Neel Kashkari
was set to moderate a panel discussion Friday morning.
Fed Vice Chairman Stanley Fischer will give an interview on CNBC
between 11 a.m. and 11:30 a.m. Eastern.
Earnings season: The results season continued at full speed on
Friday with General Electric Co.(GE) reporting earnings ahead of
expectations
(http://www.marketwatch.com/story/general-electric-profit-rises-beat-expectations-2017-04-21).
But shares dipped 0.3%.
Honeywell International Inc.(HON) also beat forecasts
(http://www.marketwatch.com/story/honeywell-tops-profit-and-sales-estimates-2017-04-21),
sending the shares up 3%.
Schlumberger Ltd.(SLB), on the other hand, fell 2.6%, after
revenue missed Wall Street estimates
(http://www.marketwatch.com/story/schlumbergers-stock-slips-as-revenue-rises-but-comes-up-short-of-expectations-2017-04-21).
After the market closed on Thursday, Visa Inc.(V) reported
better-than-expected revenue
(http://www.marketwatch.com/story/visa-results-better-than-expected-but-profit-falls-2017-04-20),
sending shares 1.2% higher.
Shares of Mattel Inc.(MAT) slumped 9.3% after the toy maker's
quarterly results out late Thursday fell short of Wall Street
estimates
(http://www.marketwatch.com/story/mattel-shares-drop-after-results-fall-short-of-street-view-2017-04-20).
Other markets: Stocks in Asia closed mainly higher
(http://www.marketwatch.com/story/led-by-nikkei-asian-markets-build-on-overnight-gains-2017-04-20),
boosted by the higher close in the U.S. on Thursday.
Oil prices moved lower while gold prices were largely flat. The
dollar inched higher against other major currencies, with the ICE
Dollar Index up 0.1%. The yield on the 10-year Treasury note was
unchanged at 2.23%.
(END) Dow Jones Newswires
April 21, 2017 10:06 ET (14:06 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.