NEW YORK (Reuters) - The U.S. benchmark S&P 500 stock index edged lower on Friday as strong earnings from Procter & Gamble Co (PG.N) were offset by ongoing concerns about rising interest rates and tensions over trade policy denting economic growth.
Shares of Procter & Gamble jumped 8.8 percent after the consumer goods company reported a surprise rise in first-quarter sales. The climb in Procter & Gamble shares lifted the Dow and helped advance the S&P 500 consumer staples index .SPLRCS 2.3 percent.
The consumer staples sector, which has underperformed the broader S&P 500 this year, was set for its biggest daily percentage gain since August 2015.
Yet recent jitters regarding global trade tensions and rising interest rates, which have weighed U.S. stocks this week, persisted.
The S&P 500 index closed below its 200-day moving average, a key statistical indicator of long-term price trends. Defensive sectors - utilities .SPLRCU and real estate .SPLRCR in addition to consumer staples - led the S&P in percentage gains, signaling caution among investors.
Trade policy worries weighed on shares of Honeywell International Inc (HON.N), which erased early gains to end 1.1 percent lower after the industrial conglomerate said it was seeing slower growth in China and that tariffs would potentially cost it “hundreds of millions” of dollars in 2019.
U.S. home sales fell in September by the most in over two years as the housing market continued to struggle despite strength across the broader economy. Home sales have now fallen for six straight months, and rising mortgage rates are expected to slow demand.
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