Traders Edge – Wednesday 5th September

US stocks have fallen as trade concerns lingered and declines in Facebook and Nike shares weighed on Wall Street’s major indexes, though data showing US manufacturing activity accelerated in August kept losses in check.Facebook shares fell 2.6 per cent on Tuesday after brokerage MoffettNathanson downgraded the social media company, warning of revenue growth deceleration. Shares of other technology companies, including Alphabet, Microsoft and Twitter also slid, while the S&P 500 technology index dropped 0.3 per cent. Nike shares fell 3.2 per cent as the company faced a backlash after it chose Colin Kaepernick, the first NFL player to kneel during the national anthem as a protest against racism, to participate in a new ad campaign.

Concerns about trade, including talks between the US and Canada to renegotiate the North American Free Trade Agreement, also took a toll, investors said. “The trade war concerns continue to linger,” said Stephen Massocca, senior vice president at Wedbush Securities in San Francisco. “The fact that we weren’t able to come to an agreement with Canada has people concerned.” Talks between the US and Canada are scheduled to resume on Wednesday after the two parties ended their talks on Friday without a deal.

Amazon bucked the negative sentiment. It briefly touched $US1 trillion in market capitalisation, joining Apple in achieving that milestone, after its shares rose as much as 1.9 per cent to hit a record $US2,050.50. Amazon ended the session up 1.3 per cent to $US2,039.51.

Morning Market Note - Wednesday 5th September