Financial Markets                      11/07 15:37

   

   NEW YORK (AP) -- Stocks wavered to a mixed finish on Wall Street Friday and 
notched their first weekly loss in the last four.

   Major indexes wobbled throughout most of the week, but ultimately pulled 
back from records set the prior week. Technology stocks once again determined 
the broader direction of the market.

   The S&P 500 spent most of the day in the red and was down as much as 1.3%. 
It ultimately eked out a gain, rising 8.48 points, or 0.1%, to close at 
6,728.80. The Dow Jones Industrial Average made a similar reversal and rose 
74.80 points, or 0.2%, to close at 46,987.10.

   The technology-heavy Nasdaq was down as much as 2.1% at one point during 
trading, but recovered most of the losses. It fell 49.46 points, or 0.2% to 
23,004.54.

   The market was weighed down by technology stocks, especially several big 
names with huge valuations that give them outsized influence over the direction 
of the market. Google's parent company, Alphabet, fell 2.1% and Broadcom fell 
1.7%.

   Wall Street remained focused on the latest quarterly reports and forecasts 
from U.S. companies.

   Payments company Block, which operates the Square and Cash App businesses, 
sank 7.7% after turning in results that fell short of forecasts. Exercise 
equipment maker Peloton jumped 14.2% after its results beat estimates.

   Expedia Group surged 17.5% after beating analysts' quarterly earnings 
forecasts.

   More than 90% of companies within the S&P 500 have reported earnings for 
their latest quarter. Most companies have reported growth beyond Wall Street 
expectations and the influential tech sector has the strongest growth, 
according to data from FactSet.

   Corporate profits and forecasts were already being scrutinized by Wall 
Street as investors try to gauge whether the market's overall high value is 
justified. The results have taken on more significance amid a lack of other 
data about the economy because of the U.S. government shutdown, which is now 
the longest on record.

   The shutdown is now responsible for yet another missing economic report 
typically relied on by Wall Street and economists. The monthly employment data 
for October was unavailable, as was the monthly data for September previously. 
The lack of data on employment is especially troubling because the job market 
was already weakening.

   Wall Street still has several private sources of economic data to turn to, 
outside of earnings. The latest came Friday from the University of Michigan, 
with its monthly consumer sentiment report. The latest report showed that 
consumer sentiment fell sharply from a month ago and hit a three-year low. 
Economists had expected a slight increase.

   "Consumers are starting to get concerned about the potential effects of the 
government's shutdown on economic activity," Eugenio Aleman, chief economist 
for Raymond James, wrote in a note to investors.

   The survey also showed that inflation expectations edged slightly higher. 
Government data on consumer prices and other measures of inflation are among 
the information Wall Street and others lack because of the government shutdown. 
Inflation has been stubbornly high and remains a key concern, especially amid a 
volatile U.S. trade war that could add fuel to rising inflation.

   The lack of inflation and employment data is a problem for the Federal 
Reserve, which has signaled a more cautious approach on interest rate cuts 
moving forward. Wall Street's big gains this year have been partly due to 
anticipation for interest rate cuts, which can help stimulate the economy by 
making loans less expensive.

   The Fed has already cut its benchmark rate twice this year as it tries to 
counter the impact that a weakening employment market could have on economic 
growth. Cutting rates could worsen inflation at a time when levels are 
stubbornly higher than the central bank's 2% goal, however.

   Wall Street is still mostly betting that the Fed will cut interest rates at 
its December meeting. Investors are forecasting a 67% chance of another 
interest rate cut, according to CME FedWatch.

   Treasury yields held steady in the bond market. The yield on the 10-year 
Treasury remained at 4.09% from late Thursday. The yield on the two-year 
Treasury held at 3.56% from late Thursday.

   Markets in Europe fell and markets in Asia closed lower. China reported that 
its exports contracted 1.1% in October, as shipments to the United States 
dropped by 25% from a year earlier. But economists expect Chinese exports to 
recover after U.S. President Donald Trump and Chinese leader Xi Jinping agreed 
last week to de-escalate the trade war between the two largest economies.

   ___

   AP Business Writer Elaine Kurtenbach contributed to this report.

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