Stocks Close Flat, S&P 500 Fails To Hit New Record High

TOPLINE

The stock market was largely flat on Friday as investors assessed last month’s retail sales data and sentiment was kept in check by a lack of progress from U.S. lawmakers on the next coronavirus stimulus bill.

KEY FACTS

Crucial quote

Brett Ewing, chief market strategist for First Franklin, says that the S&P 500 will hit “new highs before the election,” with a year-end price target of 3,500.

Surprising fact

If the S&P 500 does reach a new record high, it would be the index’s fastest recovery from a 30% drop in its history, according to data compiled by Ned Davis Research.

What to watch for

Top U.S. and Chinese trade officials were slated to review the phase one trade deal via a video call on Saturday, but that has now been pushed back due to scheduling issues, Reuters reported on Friday. The agreement, which was signed back in January, has increasingly looked to be at risk given the rising tensions between the world’s two largest economies. What’s more, China’s pledge to purchase some $200 billion of U.S. exports like pork and soybeans is currently behind schedule. The Trump Administration last week issued new sanctions on 11 individuals, including Hong Kong leader Carrie Lam, for “implementing Beijing’s policies of suppression of freedom.” Tensions are also running high in the technology space, with President Trump issuing an executive order to ban any U.S. transactions with popular Chinese app TikTok.

Further reading

Three ‘Big Impact’ Surprises That Could Slam Stocks, According To Bank Of America (Forbes)

Stocks Fall As Coronavirus Stimulus Talks Stuck In A ‘Stalemate’ (Forbes)

Don’t Expect A Stimulus Deal Until At Least September (Forbes)

Could Competition From Apple Derail Peloton? Not So Fast, Analysts Say (Forbes)

S&P 500 Nears New Record High Amid Coronavirus Vaccine Optimism (Forbes)

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