Friday's Stock Market Close: US, China Economic News Drag Markets Lower

U.S. stocks took a nosedive Friday following a negative report on leading economic indicators and China economic data showing the economy expanding at its slowest pace in three decades. News that Boeing withheld information showing it was aware problems with the 737 Max as early as 2016.

The Dow Jones Industrial Average lost 255 points to 26,770, nearly even with where it started the week. The S&P 500 dropped 11 points to 2,986 and the Nasdaq Composite gave up 67 points to finish the week at 8,089.

Volume on the New York Stock Exchange totaled 3.3 billion shares with 1,418 stocks advancing and 1.492 declining. New highs were set by 128 issues while 35 set new lows.

Leading the most actives were Bank of America (BAC), Fort Motor Co. (F) and Advanced Micro Devices (AMD).

Text messages released Friday indicate Boeing (BA) was warned about problems with 737 Max jets during simulated flights in 2016. The messages were between employees at Boeing involved in simulation flights and testing the maneuvering characteristics augmentation system, or MCAS, designed to help address drift and avoid stalls. It’s believed problems with the system led to the both Lion Air and Ethiopian Airline flights going into uncontrolled nosedives, killing 346 people.

The planes were taken out of service following the second crash as Boeing worked to fix the problem.

The news sent Boeing down 6.79%.

China’s economy expanded at its slowest rate since 1992, just 6% in the third quarter, the National Bureau of Statistics reported. That was down 0.2 points from the second quarter.

NBS spokesman Mao Shengyong said the economy was stable but warned global economic growth and other outside influences could have a “severe economic impact.” He said high-tech manufacturing was key to growth and the employment situation was “generally stable.”

Earlier this week, China reported weaker-than-expected exports, the result of the ongoing trade war with the United States.

British Prime Minister Boris Johnson spent Friday attempting to drum up support for his Brexit deal, telling lawmakers there’s “no better outcome.” A vote in the House of Commons is set for Saturday, in the first weekend gathering since the 1982 Falklands invasion.

Britain is due to leave the European Union Oct. 31. Johnson needs 320 votes to get his compromise agreement passed. The most support former Prime Minister Theresa May ever mustered was 279 votes.

of Northern Ireland’s Democratic Union party, which represents 10 votes. The party has accused Johnson of selling out Northern Ireland, with deputy party leader Sammy Wilson calling it “toxic.”

"There's no better outcome than the one I'm advocating tomorrow," Johnson told the BBC.

MPs adopted legislation last month that would prevent a no-deal Brexit, requiring a letter be sent to the EU seeking an extension of the deadline. German Chancellor Angela Merkel indicated Thursday such a request would be honored.

Coca Cola ( KO) reported increased sales thanks to its zero calorie drinks in the third quarter. Coke reported earnings of $2.59 billion or 60 cents a share compared to $1.89 billion or 44 cents a share in the year ago quarter.

Schlumberger ( SLB) reported net income of $569 million or 43 cents a share for the quarter, compared with $644 million or 46 cents a share in the third quarter of 2018. The company said the results reflect a $12.7 billion pretax charge driven by market conditions, the result of minimal growth on land due to pricing weakness.

American Express (AXP) reported third quarter earnings of $1.76 billion or $2.08 a share, up from $1.65 billion or $1.88 a share a year ago. Chief Executive Steve Squeri said he expects revenue to rise further in the fourth quarter.

On global markets, stocks were mostly lower. Hong Kong’s Hang Seng closed off 0.48% while Japan’s Nikkei was up 0.18% and China’s Shanghai Composite dropped 1.32%. Australia’s S&P/ASX was off 0.52%.

The London FTSE 100 closed off 0.44%, the German DAX dipped 0.17% and the French CAC 40 dipped 0.65%. The Stoxx Europe 600 was off 0.28%.

The London pound gained 0.47% to $1.295 while the euro gained 36% to $1.1163. The U.S. dollar index was off 0.36%.

Oil futures were lower. Crude oil lost 25 cents to $53.68 while Brent crude lost 16 cents to $59.24. Gold futures lost $4 to $1,494.20 an ounce while silver dipped 3.7 cents to $17.57 an ounce.

The 10-year Treasury note was flat at 1.751% while the 30-year note lost 2/32, with the yield rising to 2.249%.