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U.S. stocks closed lower on Wednesday as weak U.S. economic data and rising geopolitical tensions unsettled buyers to avoid the stock market, despite a string of companies posting overall good third quarter results.
Technology stocks led by Microsoft (MSFT. O) brought the biggest drag to the market, leading to the decline of all three stock indexes.
US retail sales fell for the first time in seven months in September, according to data released by the US Department of Commerce, suggesting that manufacturing LED weakness could spread to a broader economy.
"This may be the first sign that the consumer side of the economy is under pressure and that spending is likely to slow down," said Tim Ghriskey, chief investment strategist at Inverness counsel. "Consumers have been seen as the Savior of the economy, and this retail sales report is quite shocking."
Uncertainty about trade between China and the United States has increased after the U.S. House of Representatives approved a bill to support democratic protests in Hong Kong, angering Beijing.
President Trump said on Wednesday that he may not wait until he meets with Chinese President Xi Jinping at the upcoming APEC forum in Chile to sign any trade agreement with China. But he said he was formalizing some of the trade agreements announced last week.
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