WALL Street fell on Friday as negative headlines about Johnson & Johnson and Boeing, along with bleak economic data from China, soured investor risk appetite and offset generally positive corporate earnings.
All three major US stock averages ended the session in the red, but the S&P 500 and the Nasdaq posted weekly gains. The blue-chip Dow was nominally lower than the close a week earlier.
Boeing and Johnson & Johnson shares led both the S&P 500's and the Dow's declines.
Boeing dropped 6.8 per cent after Reuters reported that text messages between two employees suggested the plane maker misled the US Federal Aviation Administration about the safety of the grounded 737 Max aircraft.
Johnson & Johnson announced it would recall baby powder in the United States after regulators found trace amounts of asbestos in a sample, sending its shares falling 6.2 per cent.
Growth of China's GDP slowed to its weakest pace in nearly 30 years as the bruising trade war with the US took its toll, stoking fears of slowdown contagion.
The International Monetary Fund lowered its forecast for global growth this year to three per cent, which mark the slowest expansion since the financial crisis.
Third-quarter earnings season has hit full stride, with 73 companies in the S&P 500 having reported. Of those, 83.6 per cent have come in above average estimates, according to Refinitiv data.
The Dow Jones Industrial Average fell 255.68 points, or 0.95 per cent, to 26,770.2, the S&P 500 lost 11.75 points, or 0.39 per cent, to 2,986.2 and the Nasdaq Composite dropped 67.31 points, or 0.83 per cent, to 8,089.54.
Of the 11 major sectors in the S&P 500, seven closed in the red, with tech, communications services and industrials suffering the biggest percentage declines.
(c) 2019 City A.M., source Newspaper