S&P 500, Nasdaq fall with data, geopolitics offsets strong results
By Sinéad Carew, Shashwat Chauhan and Ankika Biswas
(Reuters) — The S&P 500 and the Nasdaq closed lower on Friday as deteriorating consumer sentiment data and the Middle East conflict soured investors on riskier bets and overshadowed upbeat quarterly earnings from some of the largest U.S. banks.
Wall Street's three major indexes opened higher but lost ground after a preliminary reading on U.S. consumer sentiment showed a sharp fall in October. The Dow managed a small gain.
Investors were also monitoring news out of the Middle East. On Friday Israel said it carried out raids inside the Gaza Strip, its first announcement of ground operations aimed at Hamas fighters after their deadly rampage in Israel. The United Nations said Israel's call for Gaza civilians to leave was impossible «without devastating humanitarian consequences.»
U.S. Treasury prices rose as investors looked for safety while the price of U.S. crude oil settled up 5.8%.
«This signals more of a risk off-sentiment,» said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. The moves in bonds, equities and oil reflect worries about deteriorating consumer sentiment, the global economy and geopolitical conflict, she added.
At this stage of the economic cycle when data has been good but is «expected to deteriorate over the next several months,» Goodwin said, «shifts in leadership are incredibly common and no one market narrative tends to last for more than a couple of days at a time.»
However, unless there is a major escalation in the Middle East war the strategist said she did not expect Friday's mood to be «indicative of the beginning of a troubled market.»
The Dow Jones Industrial Average rose 39.15 points, or 0.12%, to 33,670.29,
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